Retirement Lump Sum Tax Calculator
Retirement Lump Sum Tax Calculator South Africa 2026
Retirement/death lump sums: the first R550,000 (lifetime cumulative) is tax-free; then 18% to R770,000, 27% to R1,155,000, and 36% above.
Uses SARS 2026/2027 rates, checked 29 July 2026.
Lump Sum Tax Calculator
Lump Sum Tax Results
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Retirement lump sum tax in South Africa
How it's worked out
Calculate tax on retirement, resignation, or retrenchment lump sums using SARS 2026/2027 rates. First R550,000 tax-free on the retirement table.
Resignation/withdrawal lump sums use a stricter table — only R27,500 tax-free.
Retrenchment uses the favourable retirement table (R550,000 tax-free). Compare with our severance pay calculator.
Tax at Different Lump Sum Amounts
See how lump sum tax scales using the retirement/death table
Lump Sum Tax Brackets 2026/2027
SARS lump sum tax tables for retirement/death and withdrawal/resignation
Retirement / Death / Retrenchment
| Cumulative Amount | Rate | Description |
|---|---|---|
| R0 - R550,000 | 0% | Tax-free (lifetime) |
| R550,001 - R770,000 | 18% | 18% of amount above R550,000 |
| R770,001 - R1,155,000 | 27% | R39,600 + 27% of amount above R770,000 |
| R1,155,001+ | 36% | R143,550 + 36% of amount above R1,155,000 |
Resignation / Withdrawal
| Cumulative Amount | Rate | Description |
|---|---|---|
| R0 - R27,500 | 0% | Tax-free |
| R27,501 - R726,000 | 18% | 18% of amount above R27,500 |
| R726,001 - R1,089,000 | 27% | R125,730 + 27% of amount above R726,000 |
| R1,089,001+ | 36% | R223,740 + 36% of amount above R1,089,000 |
Understanding Lump Sum Tax
How SARS taxes retirement, resignation, and retrenchment lump sums differently
Retirement & Death Lump Sums
These attract the most favourable tax treatment. The first R550,000 is tax-free (lifetime cumulative). This table rewards those who preserve their savings until retirement or death.
Retrenchment Lump Sums
Retrenchment payouts use the same favourable retirement/death tax table. This ensures retrenched employees are not penalised for involuntary loss of employment.
Resignation & Withdrawal
Resignation lump sums use the less favourable withdrawal table with only R27,500 tax-free. This discourages early access to retirement funds before reaching retirement age.
Cumulative Lifetime Calculation
All lump sums received over your entire lifetime are added together for tax purposes. Each new lump sum is taxed on the cumulative total, with credit for tax already paid. This means later lump sums may be taxed at higher rates.
Tax-Free Portions
The R550,000 tax-free amount on retirement and the R27,500 on withdrawal are lifetime limits. Once exhausted by previous lump sums, subsequent lump sums are fully taxable from the first rand.
Retirement Lump Sum Tax FAQs
Common questions about lump sum tax in South Africa
Next step
Retrenched? Your package may include severance pay.
Key terms
Important Disclaimer
Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.