Use TaxTim's free SARS retirement savings calculator to see how much income tax you can save by contributing to a retirement annuity (RA), pension or provident fund in the 2026/2027 tax year (the 2027 year of assessment, 1 March 2026 to 28 February 2027). Enter your age, monthly income and current monthly contribution, and the calculator shows both your tax saving and an estimate of how much bigger your retirement pot could be. Retirement fund contributions are one of the most powerful legal tax deductions available to individual taxpayers in South Africa.
The calculator applies section 11F of the Income Tax Act, which lets you deduct contributions to retirement annuity, pension and provident funds from your taxable income. Your annual deduction is limited to the lesser of three amounts: (1) R430,000; (2) 27.5% of the higher of your remuneration or your taxable income; and (3) your taxable income before this deduction (excluding any taxable capital gain). The tool subtracts your allowable contribution from your gross income, then applies the current SARS individual tax brackets and rebates to work out your tax both with and without the extra saving. The difference is your tax saving, effectively a refund at your marginal tax rate. Contributions above the cap are not lost: SARS rolls the excess forward to deduct in future tax years (or against a future lump sum). The retirement-pot projection is an illustrative estimate only and assumes a flat annual growth rate.
Section 11F retirement fund deduction for the 2027 tax year (1 Mar 2026 – 28 Feb 2027)
2027 individual tax brackets (taxable income → tax):
| Taxable income | Rates of tax |
|---|---|
| R0 – R245,100 | 18% of taxable income |
| R245,101 – R383,100 | R44,118 + 26% above R245,100 |
| R383,101 – R530,200 | R79,998 + 31% above R383,100 |
| R530,201 – R695,800 | R125,599 + 36% above R530,200 |
| R695,801 – R887,000 | R185,215 + 39% above R695,800 |
| R887,001 – R1,878,600 | R259,783 + 41% above R887,000 |
| R1,878,601 + | R666,339 + 45% above R1,878,600 |
Rebates (2027): Primary R17,820; Secondary (65+) +R9,765; Tertiary (75+) +R3,249.
Prior 2026 tax year for comparison: the s11F monetary cap was R350,000; the 27.5% rule was unchanged.
Example (2027 tax year, taxpayer under 65): Thandi earns R30,000 per month (R360,000 a year) and currently saves nothing for retirement. She starts contributing R5,000 a month (R60,000 a year) to a retirement annuity.
You save tax at your marginal rate on every Rand you contribute, up to the section 11F limit. If your top bracket is 31%, a R50,000 RA contribution cuts your tax by about R15,500. Higher earners save more. The calculator shows your exact saving for the 2027 tax year.
For the 2027 tax year your deduction is capped at the lesser of R430,000, 27.5% of the higher of your remuneration or taxable income, or your taxable income before this deduction. The R430,000 cap rose from R350,000 in Budget 2026, effective 1 March 2026. It covers RA, pension and provident funds combined.
Yes. The 27.5% limit and R430,000 cap apply to all your retirement fund contributions combined, including amounts your employer contributes on your behalf (which are a taxable fringe benefit). Add employer and your own pension, provident and RA contributions together before checking the limit.
You do not lose the excess. Contributions above your annual limit are carried forward by SARS and become deductible in future tax years, or can be set off against the taxable portion of a future retirement lump sum or annuity. So over-contributing still gives a tax benefit eventually, just not this year.
It defaults to the 2027 tax year (year of assessment 1 March 2026 to 28 February 2027), using the latest SARS brackets, rebates and the R430,000 section 11F cap from Budget 2026. You can select earlier tax years, which apply the older R350,000 cap and that year's rates.
Not directly, but it reduces your taxable income, so you pay less PAYE or receive a larger refund when you file. If your employer doesn't adjust your PAYE, claim the contribution on your ITR12 return and SARS refunds the over-paid tax. Keep your fund's annual tax certificate as proof.
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