Use TaxTim's free two-pot calculator to estimate the tax you'll pay on a savings-component (savings pot) withdrawal under South Africa's two-pot retirement system, and the net amount you'll actually receive for the 2027 tax year (1 March 2026 – 28 February 2027). A savings withdrawal benefit is added to your taxable income and taxed at your SARS marginal rate, so the more you earn, the more tax SARS deducts via the fund's tax directive. Enter your annual income and the amount you want to withdraw to see your estimated take-home in rands.
Under the two-pot retirement system (effective 1 September 2024), one-third of your retirement contributions go to a savings component you can access before retirement, and two-thirds to a preserved retirement component. A pre-retirement savings withdrawal benefit is NOT taxed under the retirement lump-sum tables. Instead, SARS taxes it using the annual payment/bonus calculation at your marginal rate via a tax directive the fund requests on your behalf, with no rebates, allowable deductions, exemptions or tax-free portion applied to the withdrawal itself. The calculator estimates the tax as the difference between tax on (income + withdrawal) and tax on your income alone, using the SARS individual brackets, then subtracts any tax debt you owe SARS (which is offset against the withdrawal via an IT88L stop order) to show your net payout. You must be registered for income tax with a valid tax reference number, the minimum withdrawal is R2,000, and you may take one savings withdrawal per tax year.
SARS individual income tax brackets for the 2027 tax year (1 Mar 2026 – 28 Feb 2027). A savings-pot withdrawal is added to taxable income and taxed at these marginal rates:
| Taxable income (R) | Rates of tax |
|---|---|
| 0 – 245,100 | 18% of taxable income |
| 245,101 – 383,100 | 44,118 + 26% above 245,100 |
| 383,101 – 530,200 | 79,998 + 31% above 383,100 |
| 530,201 – 695,800 | 125,599 + 36% above 530,200 |
| 695,801 – 887,000 | 185,215 + 39% above 695,800 |
| 887,001 – 1,878,600 | 259,783 + 41% above 887,000 |
| 1,878,601 and above | 666,339 + 45% above 1,878,600 |
Example (2027 tax year, 1 Mar 2026 – 28 Feb 2027). Thandi has an annual taxable income of R380,000 and withdraws R50,000 from her savings pot. She owes SARS no tax. Tax on R430,000 = R79,998 + 31% × (430,000 − 383,100) = R94,537. Tax on R380,000 = R44,118 + 26% × (380,000 − 245,100) = R79,192. Tax attributable to the withdrawal ≈ R94,537 − R79,192 = R15,345. Net payout ≈ R50,000 − R15,345 = R34,655 (before any fund administration fees). Because part of the R50,000 falls in the 31% bracket, her effective tax on the withdrawal is about 30.7%, higher than a simple 26% guess.
A savings-pot (savings component) withdrawal is added to your taxable income for the year and taxed at your SARS marginal rate, anywhere from 18% to 45%. It is not taxed under the retirement lump-sum tables. Your fund deducts the tax via a SARS tax directive before paying you the net amount.
The minimum savings withdrawal benefit is R2,000, and you may take one withdrawal per tax year (1 March to 28 February). There is no maximum beyond the balance available in your savings component. You must be registered for income tax with a valid tax reference number, or SARS will reject the directive.
Any tax debt you owe SARS is offset against your savings withdrawal first. SARS attaches an IT88L stop order to the directive, instructing your fund to deduct the outstanding amount and pay it to SARS, so your net payout is reduced by both the withdrawal tax and the debt. An existing payment arrangement does not block the withdrawal.
Possibly. The fund's tax directive uses an estimated marginal rate. If you have other income and the directive under-deducted, the shortfall appears on your annual assessment and must be paid. If too much was withheld, SARS refunds it. Always declare the withdrawal, because under-declaring income can trigger penalties and interest.
No. This calculator estimates the SARS tax on your savings withdrawal and your net amount after tax (and any SARS debt). Your retirement fund or administrator may charge a separate withdrawal or administration fee, which is deducted on top. Check your fund's fee schedule for the exact amount you'll receive.
It uses the SARS individual income tax brackets for the 2027 tax year (1 March 2026 – 28 February 2027), the brackets currently in force following Budget 2026. Because a savings withdrawal is taxed at your marginal rate, the result depends on your total taxable income for the year, including the withdrawal.
Ready to file with TaxTim?
Turn these numbers into a properly completed, SARS-ready return. TaxTim guides you question-by-question and submits to SARS eFiling for you.
Start your tax return