Retirement Lump Sum Benefits

Withdrawal Benefits

2027 tax year (1 March 2026 – 28 February 2027)

Taxable income Rate of tax
R1 – R27 500 0% of taxable income
R27 501 – R726 000 18% of taxable income above R27 500
R726 001 – R1 089 000 R125 730 + 27% of taxable income above R726 000
R1 089 001 and above R223 740 + 36% of taxable income above R1 089 000

Retirement fund lump sum benefits or severance benefits

2027 tax year (1 March 2026 – 28 February 2027)

Taxable income Rate of tax
R1 – R550 000 0% of taxable income
R550 001 – R770 000 18% of taxable income above R550 000
R770 001 – R1 155 000 R39 600 + 27% of taxable income above R770 000
R1 155 001 and above R143 550 + 36% of taxable income above R1 155 000