Retirement Tax Calculator
Calculate retirement contribution deductions and lump sum tax.
Lump Sum Tax
Retirement Lump Sum Brackets 2025/2026
| Lump Sum Amount | Rate of Tax |
|---|---|
| R0 – R550 000 | No tax |
| R550 000 – R770 000 | 18% of taxable income |
| R770 000 – R1 155 000 | R39 600 + 27% of amount above R770 000 |
| R1 155 000 – and above | R143 550 + 36% of amount above R1 155 000 |
Withdrawal Lump Sum Brackets 2025/2026
| Lump Sum Amount | Rate of Tax |
|---|---|
| R0 – R27 500 | No tax |
| R27 500 – R726 000 | 18% of taxable income |
| R726 000 – R1 089 000 | R125 730 + 27% of amount above R726 000 |
| R1 089 000 – and above | R223 740 + 36% of amount above R1 089 000 |
Frequently Asked Questions
You can deduct up to 27.5% of the greater of your remuneration or taxable income, subject to an annual cap of R350,000.
At retirement, the first R550,000 is tax-free (cumulative across all lump sums received since 1 October 2007). Amounts above that are taxed at 18%, 27%, or 36% depending on the bracket. Pre-retirement withdrawals have a lower tax-free threshold of R27,500.
A retirement lump sum is received when you retire, are retrenched, or become disabled. A withdrawal lump sum is taken before retirement (e.g., when resigning). Retirement and retrenchment lump sums have a higher tax-free amount (R550,000) and more favourable brackets than withdrawal lump sums (R27,500 tax-free).