RA contribution
27.5% of salary
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Annual deduction cap
R 430,000
Max deductible
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Drag to test different contribution amounts
Your marginal tax bracket
Each deductible rand of RA contribution saves — in tax
With RA contribution
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tax paid
Retirement fund projection
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Illustrative only. Assumes fixed monthly contributions with monthly compounding. Does not account for inflation, fees or tax on withdrawal.
How the 27.5% rule works
1
Calculate 27.5% of your annual salary — this is your maximum contribution.
2
SARS caps the annual deduction at R 430,000 (2027 tax year).
3
The lower of the two is your deductible amount. For incomes above R 1.56 million, the cap applies.
Disclaimer: This calculator is for educational and illustrative purposes only. It uses 2025/2026 SARS income tax tables with the primary rebate of R 17,235. Results are approximate and exclude medical tax credits, UIF, and SDL. The annual RA deduction limit of R 430,000 reflects the 2026/2027 tax year as published. Retirement projections assume constant contributions and a fixed nominal return — actual returns will vary. This does not constitute financial advice. Speak to a qualified financial advisor before making any financial decisions.
Source: SARS Income Tax Act · Taxation Laws Amendment Act · 2025/2026 Budget Speech