Retirement Tax Calculator — South Africa 2026/2027
Calculate tax on retirement lump sums, resignation withdrawals using SARS 2026/2027 tables. Updated April 2026.
2026/2027 Note: If your total retirement fund value is less than R360,000, you may take the full amount as a lump sum. The first R550,000 of retirement lump sums is tax-free (lifetime cumulative).
2026/2027 Note: Only the first R27,500 of a resignation/withdrawal lump sum is tax-free. Early withdrawal is taxed at higher rates than retirement — avoid if possible.
How retirement lump sum tax works — 2026/2027
Tax-free threshold — R550,000
The first R550,000 of your retirement lump sum is tax-free. This is a lifetime cumulative limit — prior withdrawals reduce this remaining amount.
De minimis — R360,000
If your total retirement fund value is less than R360,000, you may take the full amount as a lump sum — even if it exceeds one-third of the fund.
Resignation is taxed harder
Early withdrawals on resignation use a different table — only R27,500 is tax-free. Rates from 18% to 36% apply on the balance.
Living annuity
If you invest in a living annuity at retirement, monthly drawdowns are taxed as income at your marginal rate — not the lump sum table.
Retirement lump sum tax table 2026/2027
| Taxable Lump Sum (Cumulative) | Tax Rate | Base Tax |
|---|---|---|
| R0 – R550,000 | 0% | R0 |
| R550,001 – R770,000 | 18% | R0 |
| R770,001 – R1,155,000 | 27% | R39,600 |
| R1,155,001 and above | 36% | R143,550 |
Withdrawal / resignation tax table 2026/2027
| Taxable Withdrawal (Cumulative) | Tax Rate | Base Tax |
|---|---|---|
| R0 – R27,500 | 0% | R0 |
| R27,501 – R726,000 | 18% | R0 |
| R726,001 – R1,089,000 | 27% | R125,730 |
| R1,089,001 and above | 36% | R223,740 |
Retirement vs resignation — key differences
| Feature | Retirement | Resignation/Withdrawal |
|---|---|---|
| Tax-free portion | R550,000 | R27,500 |
| De minimis full withdrawal | Below R360,000 | N/A |
| First taxable rate | 18% | 18% |
| Max rate | 36% | 36% |
| When applicable | Age 55+ / death / disability | Resignation / retrenchment |
| Recommended? | Yes — more tax-free | Avoid if possible |