Calculate tax on retirement, resignation, or retrenchment lump sums using current SARS rates. See how cumulative lump sums affect your tax.
Calculates using the retirement/death table or the withdrawal/resignation table depending on your lump sum type
Accounts for previous lump sums received over your lifetime, accurately reflecting SARS cumulative tax rules
Compare tax at different lump sum amounts to plan your retirement or resignation payout effectively
Enter your lump sum details to calculate the tax payable
Enter your lump sum details to see your tax liability and net payout
See how lump sum tax scales using the retirement/death table
SARS lump sum tax tables for retirement/death and withdrawal/resignation
| 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 |
| 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 |
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.
Common questions about lump sum tax in South Africa
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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.