Retirement lump sum tax calculator
Tax on a lump sum from your pension, provident or retirement annuity fund, or a retrenchment package, using SARS's lump sum tables.
You receive
R 898 300
Tax of R 101 700 on your R 1 000 000 lump sum, 10,2% of it. The first R 550 000 of retirement and retrenchment lump sums is tax-free.
- You receive R 898 300
- Tax R 101 700
If you withdrew it before retirement instead
The same R 1 000 000 taken as a withdrawal (for example on resigning) would be taxed R 199 710, R 98 010 more.
SARS retirement and severance table 2026/27
| Total lump sums | Tax |
|---|---|
| R 0 – R 550 000 | 0% |
| R 550 001 – R 770 000 | 18% above R 550 000 |
| R 770 001 – R 1 155 000 | R 39 600 + 27% above R 770 000 |
| R 1 155 001 – and above | R 143 550 + 36% above R 1 155 000 |
Two different tables
SARS taxes lump sums separately from your salary, using two tables. The retirement and severance table applies when you retire, die, or are retrenched, and its first R 550 000 is tax-free. The withdrawal table applies when you resign, are dismissed, or take money out before retirement, and only its first R 27 500 is tax-free.
Earlier lump sums count
The tables are cumulative: SARS adds every taxable lump sum you've received before, so the tax-free amount is used only once in your lifetime. Your fund applies for a tax directive and pays SARS before paying you.
Two-pot savings withdrawals are different: they're taxed at your income tax rate. Use the two-pot withdrawal calculator for those.
Read the guide: How a retrenchment package is taxed