RA tax-back calculator
Retirement annuity contributions are tax-deductible — up to 27.5% of your income, capped at R 350 000 a year. See what SARS effectively gives back.
Estimated tax back per year
R 6 240,00
You put in R 2 000/month, but after the tax saving of R 520,00/month it effectively costs you R 1 480,00/month.
How this works
Your marginal rate is the magic number. Every rand you contribute is deducted from your income before tax, so you save tax at your top rate — currently 26.0% of what you contribute.
The limits: you can deduct up to 27.5% of your income, with an absolute cap of R 350 000 per year. Anything above carries over to future tax years.
How you get the money: if you pay an RA yourself (not via payroll), the saving usually arrives as a refund after you file your tax return. Via payroll, your PAYE simply drops each month.