How is a savings-pot withdrawal taxed?

It is added to your taxable income for the year and taxed at your marginal rate. Your fund gets a tax directive from SARS and deducts the tax before paying you, so the amount that lands in your account is already net of tax.

How often can I withdraw, and how much?

Once per tax year (1 March to end February), with a minimum of R2,000 per withdrawal. The maximum is whatever is in your savings pot. There is no cap beyond your pot balance.

Can SARS take more than the tax?

Yes. If you owe SARS money — old assessments, penalties — they can instruct your fund to deduct that debt from the payout too. Check your eFiling statement of account before withdrawing.

Why did I pay more tax than this calculator shows?

The calculator assumes your fund and SARS know your full income. If the directive is issued at a higher rate, or you have other income pushing you into a higher bracket, the final number is settled when you file your return — you may owe more or get some back.

Should I withdraw at all?

That's a personal decision we can't make for you. What the numbers say: you lose the tax immediately, plus all the future compound growth on the full amount. Most people are better off treating the savings pot as a true emergency fallback, not a bonus.

Two-pot withdrawal calculator

Your savings pot isn't tax-free money. A withdrawal is added to your income and taxed at your marginal rate. See what SARS takes and what actually reaches your account.

Gross monthly income

Withdrawal amount

Minimum R 2 000, once per tax year

You'd actually receive about

R 14 800,00

Withdrawal from savings potR 20 000

Tax at your marginal rate (26.0% effective)-R 5 200,00

The rules, in plain language

Once per tax year. One savings-pot withdrawal between 1 March and end February, minimum R 2 000. Use it and you wait for the next tax year.
Taxed like salary, not like a retirement lump sum. The amount is stacked on top of your income and taxed at your marginal rate — there's no tax-free portion like at retirement.
SARS gets paid first. Your fund requests a tax directive and deducts the tax — and any outstanding SARS debt — before anything reaches you.
The hidden cost is the growth you give up. The full R 20 000 stops compounding for retirement — over decades that usually dwarfs the tax.

Educational only — not financial advice

FirstCheque gives general information and estimates based on published SARS tables. It doesn't know your full situation and isn't advice under the FAIS Act. Confirm figures with SARS, your payroll department, or a registered financial adviser.

Two-pot withdrawal calculator

Common questions