How much can you put in an RA to save tax? (2026/27)
Figures for the 2026/27 tax year. Prime rate checked 9 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
Retirement annuity (RA), pension and provident fund contributions are deductible up to 27,5% of your income, with an overall cap of R 430 000 a year from 2026/27. Here's what that allows at different salaries, and what using the whole limit saves.
The most you can deduct, and what it saves
| Monthly salary | Most you can deduct per month | Tax saved per month | Real cost per month |
|---|---|---|---|
| R 20 000 | R 5 500 | R 990 | R 4 510 |
| R 30 000 | R 8 250 | R 2 145 | R 6 105 |
| R 40 000 | R 11 000 | R 3 264 | R 7 736 |
| R 60 000 | R 16 500 | R 5 966 | R 10 534 |
| R 80 000 | R 22 000 | R 8 702 | R 13 298 |
| R 150 000 | R 35 833 | R 14 692 | R 21 142 |
Under 65, no other retirement fund contributions. If you already contribute to a pension or provident fund at work, that uses part of the same limit.
How the limit works
The limit is 27,5% of the greater of your remuneration or taxable income, and no more than R 430 000 a year. It covers all your pension, provident and RA contributions together. The cap only matters above about R 130 303 a month.
Contributing more than the limit
Contributions above the limit aren't lost. They carry over to later years, and anything still unused can reduce the tax on your retirement lump sum or annuity income. But they don't save tax this year.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
See what your RA contribution saves