Retirement Lump-Sum Tax Tables 2026/27
Retirement Lump-Sum Tax Tables 2026/27
When you take cash from a retirement fund, it is taxed on a special scale -- not your normal rates. Two tables: one for retiring or death, a harsher one for withdrawing early. The first R550,000 at retirement is tax-free.
At retirement, death or severance
| R1 to R550,000 | 0% (tax-free) |
| R550,001 to R770,000 | 18% of the amount above R550,000 |
| R770,001 to R1,155,000 | R39,600 + 27% of the amount above R770,000 |
| R1,155,001 and above | R143,550 + 36% of the amount above R1,155,000 |
Withdrawal before retirement (e.g. resignation, divorce order)
| R1 to R27,500 | 0% (tax-free) |
| R27,501 to R726,000 | 18% of the amount above R27,500 |
| R726,001 to R1,089,000 | R125,730 + 27% of the amount above R726,000 |
| R1,089,001 and above | R223,740 + 36% of the amount above R1,089,000 |
Guidance only -- not tax advice. These tables are cumulative: they apply to the total of all lump sums taken since the trigger date, so an earlier withdrawal eats into the tax-free band. No change from 2025/26. Verify at sars.gov.za.
Sources: SARS / National Treasury Budget 2026 Tax Guide · SARS Retirement Lump Sum Benefits
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