GlenCalc

Retirement annuity tax calculator

Contributions to pension, provident and retirement annuity funds are deductible up to 27.5% of the greater of remuneration or taxable income, with an annual cap. Anything above the limit carries forward to later years.

Your answer

Tax saved this yearR 21 600,00
Deduction allowedR 60 000,00
Net cost of each R100 contributed64

Worked out in your browser. Nothing you type is sent to a server.

How we worked it out

Updated as you change the numbers.

  1. Deduction = the lowest of R 60 000,00, 27.5% × R 600 000,00 and R430 000 = R 60 000,00.
  2. Tax saved = tax on R 600 000,00 − tax on R 540 000,00 = R 21 600,00.

Method and assumptions

SARS, Budget 2026: retirement fund contributions are deductible at 27.5% of the greater of remuneration or taxable income, with an annual cap of R430 000 for 2026/27; excess contributions carry forward. Tax from the 2027 tax year tables, less the rebates for your age.

Questions

How much tax does R60 000 in a retirement annuity save on R600 000 of income?

R21 600: the whole R60 000 is deductible and saves tax at 36%.

Sources

Method and figures checked on November 3, 2026. Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.

Embed this calculator on your site

Free to use. Paste this where you want the calculator; it runs in your visitors’ browsers, sets no cookies and never sends us anything your visitors type.

Related calculators