Lump sum tax calculator
Retirement, retrenchment package or cashing out a fund before retirement - each has its own SARS table, and every lump sum you have ever taken counts toward the tax on the next one. See the real number before you sign anything. Nothing you enter leaves this page.
The rule most people miss: aggregation
SARS does not tax each lump sum on its own. Every retirement fund lump sum and severance benefit you have received since October 2007 is added together, the table is applied to the total, and the tax already paid on earlier lump sums is subtracted. So the tax-free R550 000 is a lifetime allowance, not a per-payout one - and a withdrawal today makes every future payout more expensive.
Retrenchment packages use the retirement table, which is why a first retrenchment of under R550 000 can be completely tax-free.
Frequently asked questions
Is my retrenchment package really tax-free?
The severance benefit portion is tax-free up to R550 000 of your lifetime total, if you have not used the band before. Leave payouts and notice pay are ordinary salary, taxed normally - only the severance part gets the table.
What changed with the two-pot system?
Savings-pot withdrawals are taxed at your marginal income tax rate, not these tables - use the two pot calculator for those. These tables still apply at retirement and to the old vested amounts.
Should I cash out my pension when I resign?
Run the withdrawal option above and look at the effective rate - then remember the amount also stops compounding for your retirement. Transferring to a preservation fund keeps it growing and keeps the retirement table available later.
Thinking of a two-pot withdrawal instead?
Savings-pot withdrawals are taxed differently - at your marginal rate. See that number too.
Two pot calculatorKeep exploring
Based on the SARS tables for the 2027 tax year (1 March 2026 to 28 February 2027), sars.gov.za. Free tools are estimates. Packs are templates and guidance, not legal or financial advice.