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RETIREMENT FUND LUMP SUMS · SECOND SCHEDULE · YEAR OF ASSESSMENT 2027

Retirement Lump Sum Tax Calculator

Pension, provident, and retirement annuity lump sums are taxed on their own SARS tables — separate from your normal income tax, and much stricter if taken before retirement.

Du Preez Tax & Bookkeeping Services · SAIT-registered practitioner

Lump sum details

01
Retirement, death, or retrenchment More favourable table — first R550,000 tax-free
Resignation or withdrawal before retirement Stricter table — only the first R27,500 tax-free

Retirement / death / retrenchment table

Reference
Taxable amountRate

Tax on this lump sum

Result
Lump sumR 0.00
Plus: prior lump sumsR 0.00
Cumulative totalR 0.00
Tax on this lump sumR 0.00
Net amount you receive
R 0.00
0.0% effective rate

Retiring vs resigning — same amount

Compare

What the same lump sum would net you under each table, with no prior lump sums assumed for this comparison.

At retirement

TaxR 0.00
NetR 0.00

Resignation / withdrawal

TaxR 0.00
NetR 0.00

Note: Based on the SARS Second Schedule retirement lump sum tax tables for the 2027 tax year, unchanged since 2023. This is a planning estimate only — it simplifies the aggregation rules (retirement lump sums since October 2007, withdrawal lump sums since March 2009, and severance benefits since March 2011 are combined under specific rules in the Income Tax Act), and doesn't account for the two-pot system's savings component, which is instead taxed at your normal marginal rate. Not tax advice — get in touch with us for a figure specific to your situation.