Free calculator
What does a retirement annuity
save me in tax?
Every rand you put into a retirement annuity comes off the income SARS taxes you on — up to 27.5% of your income, capped at R350 000 a year.
Your details
Your saving
Three things worth knowing
- • The deadline is the last day of February. A lump sum paid in on 28 February still counts for that whole tax year.
- • Contributions above the limit aren't lost — they carry over to future years or reduce tax when you eventually retire.
- • You need the tax certificate from your provider before your return can be filed with the deduction on it.
Common questions
How much of my retirement annuity is tax deductible?
Up to 27.5% of the greater of your taxable income or remuneration, capped at R350 000 a year across all retirement funds combined.
How much tax will an RA save me?
Your saving equals your contribution multiplied by your marginal tax rate, so a taxpayer in the 36% bracket gets R360 back for every R1 000 contributed, up to the limits.
What happens to contributions above the limit?
They are not lost — the excess rolls over to future tax years and can also reduce tax on your retirement lump sum.
When should I contribute to get the deduction?
The contribution must reflect in the fund before the end of the tax year on 28 February to count for that year.
Other free tools
Want a real person to handle it?
AfriTax members get a registered tax practitioner who files their return, checks every deduction and deals with SARS on their behalf — from R89/month.
These tools give an estimate using the current SARS tax tables. Your actual assessment depends on your full circumstances — always confirm with a registered practitioner.