i What this page covers
A withdrawal from the savings pot of a retirement fund is taxed as income in the year you take it, at your marginal rate, through a tax directive the fund requests from SARS before paying out. It is not taxed on the retirement lump sum tables and it does not get its own exemption. The tables show the tax and the net amount for eleven withdrawal sizes at five income levels for 2026/27, and the marginal rate that applies in each bracket.
Use it to answer "how much will I get if I withdraw R30,000 from my two-pot" before you apply, and the two-pot withdrawal tax calculator for your own income and fund fee. The rules themselves are on the two-pot reference page.
★ What changed this year
The two-pot system has been in force since 1 September 2024: one third of new contributions goes to a savings pot that can be withdrawn once a tax year, minimum R2,000, taxed at marginal rates. For 2026/27 the brackets moved up slightly, so a withdrawal costs a little less tax than the same withdrawal a year ago at the same income. SARS also deducts any tax debt you owe from the payout before the fund pays you.
| Withdrawal | Income R150,000 a year | Income R250,000 a year | Income R400,000 a year | Income R600,000 a year | Income R900,000 a year |
|---|---|---|---|---|---|
| R2,000 | R360 | R520 | R620 | R720 | R820 |
| R5,000 | R900 | R1,300 | R1,550 | R1,800 | R2,050 |
| R10,000 | R1,800 | R2,600 | R3,100 | R3,600 | R4,100 |
| R15,000 | R2,700 | R3,900 | R4,650 | R5,400 | R6,150 |
| R20,000 | R3,600 | R5,200 | R6,200 | R7,200 | R8,200 |
| R25,000 | R4,500 | R6,500 | R7,750 | R9,000 | R10,250 |
| R30,000 | R5,400 | R7,800 | R9,300 | R10,800 | R12,300 |
| R40,000 | R7,200 | R10,400 | R12,400 | R14,400 | R16,400 |
| R50,000 | R9,000 | R13,000 | R15,500 | R18,000 | R20,500 |
| R75,000 | R13,500 | R19,500 | R23,250 | R27,000 | R30,750 |
| R100,000 | R18,392 | R26,000 | R31,000 | R36,126 | R41,000 |
| Withdrawal | Income R150,000 a year | Income R250,000 a year | Income R400,000 a year | Income R600,000 a year | Income R900,000 a year |
|---|---|---|---|---|---|
| R2,000 | R1,640 | R1,480 | R1,380 | R1,280 | R1,180 |
| R5,000 | R4,100 | R3,700 | R3,450 | R3,200 | R2,950 |
| R10,000 | R8,200 | R7,400 | R6,900 | R6,400 | R5,900 |
| R15,000 | R12,300 | R11,100 | R10,350 | R9,600 | R8,850 |
| R20,000 | R16,400 | R14,800 | R13,800 | R12,800 | R11,800 |
| R25,000 | R20,500 | R18,500 | R17,250 | R16,000 | R14,750 |
| R30,000 | R24,600 | R22,200 | R20,700 | R19,200 | R17,700 |
| R40,000 | R32,800 | R29,600 | R27,600 | R25,600 | R23,600 |
| R50,000 | R41,000 | R37,000 | R34,500 | R32,000 | R29,500 |
| R75,000 | R61,500 | R55,500 | R51,750 | R48,000 | R44,250 |
| R100,000 | R81,608 | R74,000 | R69,000 | R63,874 | R59,000 |
| Taxable income band 2026/27 | Marginal rate | Tax on a R20,000 withdrawal | You receive |
|---|---|---|---|
| R0 to R245,100 | 18.0% | R0 | R20,000 |
| R245,101 to R383,100 | 26.0% | R5,200 | R14,800 |
| R383,101 to R530,200 | 31.0% | R6,200 | R13,800 |
| R530,201 to R695,800 | 36.0% | R7,200 | R12,800 |
| R695,801 to R887,000 | 39.0% | R7,800 | R12,200 |
| R887,001 to R1,878,600 | 41.0% | R8,200 | R11,800 |
| R1,878,601 and above | 45.0% | R9,000 | R11,000 |
How these figures work
The fund applies to SARS for a tax directive, SARS adds the withdrawal to your expected taxable income for the year and tells the fund how much to withhold, and the fund pays you the balance less its own administration fee. Because the withdrawal sits on top of your salary, it is taxed at the rate of the bracket your salary already reaches, or at the next rate if it pushes you over, which is what the first table shows: the same R30,000 costs R5,400 at a R150,000 income and R11,700 at R900,000.
At assessment the withdrawal is part of your taxable income for the year, so the directive amount is a withholding, not the final tax; if your actual income differs from what SARS assumed, the difference is settled in your return. Low earners below the R99,000 threshold still pay tax on the directive if the withdrawal pushes them over it. Each year of assessment allows one withdrawal of at least R2,000 from the savings pot.
★ A worked example
Someone earning R400,000 a year withdraws R30,000. Taxable income becomes R430,000, tax rises from R67,417 to R76,717, so SARS takes R9,300 and the fund pays out R20,700 before its fee. The same withdrawal at R150,000 of income costs R5,400 because it is taxed at 18%, and at R900,000 it costs R12,300 at 41%.
✕ Common mistakes
- Expecting the retirement lump sum tables, with their R550,000 tax-free portion, to apply. They apply at retirement, not to savings pot withdrawals.
- Forgetting the fund fee. Administrators charge a fixed fee per withdrawal, often R100 to R600, on top of the tax.
- Taking the maximum because it is available. The withdrawal is taxed at your marginal rate now and forfeits decades of tax-free growth.
- Ignoring outstanding SARS debt. SARS deducts it from the payout before the fund pays you.
- Assuming the directive is the final tax. The withdrawal is reconciled in your annual return.
Notes on reading these figures
Figures use the 2026/27 brackets and primary rebate for a taxpayer under 65 with the stated income and no other deductions, and show tax only; fund administration fees and any SARS debt deducted from the payout are not included.
Terms used on this page
Spotted an outdated figure? If a figure or rate on this page no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
See also: Crypto Exchange Fees in South Africa.
Frequently asked questions
How much tax do I pay on a R25,000 salary in South Africa?
About R3,381 a month in PAYE under the 2026/27 tables for someone under 65 with no retirement contribution, plus R177.12 UIF, leaving roughly R21,440 net. A 7.5% retirement contribution brings the PAYE down by about R400.
At what salary do I start paying tax?
Above R8,250 a month (R99,000 a year) if you are under 65 in 2026/27. The thresholds are higher for taxpayers over 65 and over 75 because of the additional rebates.
Why is my payslip PAYE different from the table?
Medical scheme credits, a retirement contribution, a travel allowance, a mid-year start or a bonus all change the figure. The table is the base case; the PAYE calculator takes your details.
Is UIF really only R177.12 on a R100,000 salary?
Yes. The contribution ceiling is R17,712 of monthly remuneration, so the maximum employee contribution is R177.12 regardless of salary.
Does a 13th cheque use these tables?
Not directly. A bonus is added to the annual income and taxed by the annualisation method, which usually means a higher percentage comes off the bonus than off the salary. The Bonus Tax Calculator on this site does that calculation.
Do these figures apply to provisional taxpayers and freelancers?
The brackets and rebates do, but freelancers pay through provisional tax twice a year rather than monthly PAYE, and UIF does not apply to them. The Provisional Tax Calculator covers that.
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