Two-Pot Withdrawal Tax Calculator (2026/27): How Much You'll Actually Get

By Finance Guide Editors Updated October 2026 · 5 sources · 5 min read

Prices and facts checked 15 October 2026. We don't accept payment for rankings.

Short answer: a two-pot savings withdrawal is added to your income for the year and taxed at your marginal rate, which is 18% to 45% depending on what you earn. No tax-free amounts apply. For someone earning R300,000 a year, a R20,000 withdrawal costs about R5,200 in tax before the fund's admin fee. Use the calculator below for your own numbers (SARS; National Treasury FAQ).

Two-pot withdrawal tax calculator

How the calculator works: it works out your income tax for the 2026/27 tax year with and without the withdrawal, using the SARS individual tax table and rebates, and shows the difference. That mirrors what SARS describes: the withdrawal is taxed "using the annual payment/bonus tax calculation" at your marginal rate. It's an estimate, not a tax directive.

How a two-pot withdrawal is taxed

SARS says the savings withdrawal benefit is taxed at your marginal rate, and that "no retirement rates, allowable deductions, exemptions or tax-free amounts" are used (SARS, 2 September 2024). In practice:

1. Your fund asks SARS for a tax directive before paying you. You must be registered for income tax and give the fund your tax reference number, or the directive will be rejected.
2. SARS works out the tax as if the withdrawal were a once-off bonus on top of your income for the year.
3. SARS deducts money you owe. If you have outstanding tax, provisional tax or admin penalties, SARS attaches a stop order (IT88L) to the directive, so the debt comes off your payout first.
4. The fund deducts its admin fee and pays the rest into your bank account.

That's why the payout is often lower than people expect. The retirement lump-sum tax tables, including their tax-free portion, don't apply to savings-pot withdrawals.

2026/27 tax brackets (1 March 2026 to 28 February 2027)

Source: SARS rates of tax for individuals, checked 15 October 2026. The primary rebate is R17,820, so if you're under 65 you pay no income tax on taxable income up to R99,000.

Worked examples

All examples are for someone under 65, use the 2026/27 table, and leave out the admin fee. We calculated them with the method above.

A large withdrawal can push part of it into a higher bracket. For example, R300,000 of income plus a R100,000 withdrawal crosses the R383,100 line, so the top slice is taxed at 31%.

The two-pot rules in brief

The two-pot system started on 1 September 2024. These are the main rules, from National Treasury's two-pot FAQ:

• Contributions are split. One-third goes to the savings component and two-thirds to the retirement component. Money saved before 1 September 2024 stays in the vested component, under the old rules.
• Seed capital. At the start, 10% of your fund value at 31 August 2024, capped at R30,000, moved into your savings pot. This was a once-off transfer, not an annual allowance.
• One withdrawal per tax year, with a minimum of R2,000 and no maximum. You don't have to withdraw, and unused money keeps growing.
• The retirement component is locked until retirement, even if you resign.
• Admin fees vary by fund. In a 2024 survey of administrators, Keystone Actuarial Solutions estimated the average fee at about R320 per withdrawal, and some funds charge nothing (Moonstone). Ask your fund for its current fee.

Many members now withdraw every year. About 75% of claims early in the 2025/26 tax year were repeat claims, and the average claim was around R6,000, according to figures from administrators on the Actuarial Society's Retirement Matters Committee (Moonstone, May 2025).

Should you withdraw?

That depends on your situation, and we can't advise you on it. Treasury's FAQ suggests some questions to ask yourself:

• Is it a real emergency? Treasury says the savings pot is meant for financial distress and should be used "sparingly".
• What does it cost you later? You give up the amount withdrawn plus all its future growth. Treasury also notes that money left in the savings pot until retirement attracts less tax.
• Is there a cheaper option? Compare the tax and fee with the cost of other options, such as an overdraft or payment arrangement, before you withdraw.
• Do you owe SARS? If you do, part or all of your payout may go to SARS instead of to you.

FAQ

How much tax will I pay on my two-pot withdrawal?

Your marginal rate, from 18% to 45%. The withdrawal is added to your income for the tax year, and SARS calculates the extra tax. Use the calculator above for an estimate.

Is there a tax-free amount on two-pot withdrawals?

No. SARS says no tax-free amounts, exemptions or retirement tax tables are used on savings-pot withdrawals. The tax-free portion of the retirement lump-sum tables only applies when you retire.

Why did I get less than the calculator shows?

Usually because SARS deducted tax you owed (including admin penalties) through a stop order on the directive, your other income was higher than you entered, or your fund's fee was higher.

How often can I withdraw from my savings pot?

Once per tax year (1 March to the end of February), with a minimum of R2,000.

Do I need to be registered for tax?

Yes. SARS says registration for income tax is mandatory, and your fund needs your tax reference number to apply for the directive.

Does a two-pot withdrawal affect my tax return?

Yes. The withdrawal is part of your taxable income for that tax year, so it should appear on your return. If too little tax was withheld, you may owe SARS when you're assessed. SARS has a two-pot calculator on its website, eFiling, the MobiApp and WhatsApp to estimate this.

Changelog: 15 Oct 2026, first published, using the 2027 tax year (2026/27) tables.