Retirement lump sum tax calculator 2026/27
Your details
Lump sum after tax (estimate)
R752 300.00
6% average tax rate on this lump sum
- Tax SARS will direct the fund to deduct
- R47 700.00
How we worked it out
- This lump sumR800 000.00
- Earlier lump sums and severance benefitsR0.00
- Total (aggregate)R800 000.00
- Tax on total using the retirement / severance benefit tableR47 700.00
- Less tax on earlier amounts (same table)R0.00
- Tax on this lump sumR47 700.00
- Amount after taxR752 300.00
- On retirement, a fund value of R360 000 or less may be taken in full as cash (from 1 March 2026). Above that, most of it must buy an annuity; your fund confirms how much you may take in cash.
The SARS tables for 2026/27
| Taxable lump sum (aggregated) | Tax |
|---|---|
| R1 – R550 000 | 0% |
| R550 001 – R770 000 | 18% of the amount above R550 000 |
| R770 001 – R1 155 000 | R39 600 + 27% of the amount above R770 000 |
| R1 155 001 and above | R143 550 + 36% of the amount above R1 155 000 |
| Taxable lump sum (aggregated) | Tax |
|---|---|
| R1 – R27 500 | 0% |
| R27 501 – R726 000 | 18% of the amount above R27 500 |
| R726 001 – R1 089 000 | R125 730 + 27% of the amount above R726 000 |
| R1 089 001 and above | R223 740 + 36% of the amount above R1 089 000 |
How earlier lump sums are added in
SARS works out the tax on the total of this lump sum and all earlier ones (withdrawal benefits since 1 March 2009, retirement lump sums since 1 October 2007 and severance benefits since 1 March 2011), then subtracts the tax on the earlier ones using the same table. That is why the tax-free part is only available once. Read the lump sum tax tables explained.
What happens to the rest
Money you do not take in cash buys an annuity, which is taxed as income when it is paid. See the living annuity calculator.
For salary, bonus and other tax calculators, see RandRight's lump sum tax calculator and the rest of our sister site.
Frequently asked questions
How much of a retirement lump sum is tax-free in 2026/27?
The first R550 000 on the retirement and severance table, unchanged since the 2024 tax year. It is a lifetime amount: earlier retirement, withdrawal and severance lump sums are added in and use it up.
What is the tax on a R1 000 000 retirement lump sum?
R101 700 if you have had no earlier lump sums: nothing on the first R550 000, 18% from R550 000 to R770 000 (R39 600), and 27% on the rest.
Which table applies when I resign?
The withdrawal table, which has only R27 500 tax-free and then 18%, 27% and 36%. For example, R300 000 withdrawn on resignation costs about R49 050 in tax, and it also reduces the tax-free amount left for your retirement.
Is a retrenchment package taxed on the retirement table?
Yes. A severance benefit (a lump sum from or arranged by your employer because your job ended, for example retrenchment) and a lump sum from the fund on retrenchment use the retirement and severance table, with the same aggregation.
Can I take my whole retirement fund as cash?
Only if the amount is R360 000 or less (from 1 March 2026), or for the savings component and certain older vested amounts. Otherwise part of it must buy an annuity. Your fund tells you how much of your own benefit can be paid in cash.
Is a two-pot savings withdrawal taxed on these tables?
No. Savings withdrawal benefits are taxed at your marginal income tax rate. Use the two-pot withdrawal tax calculator for those.