The deduction rules
You can deduct up to 27.5% of your taxable income, to a maximum of R350,000 a year, across your pension, provident and retirement annuity contributions together. Anything above the limit carries over to future years.
Retirement annuity tax saving
Estimate the income-tax reduction from retirement-annuity contributions using historical SARS 2025/26 tables.
Tax saved per year
R 12 960,00
Deductible contribution
R 36 000,00
Your annual limit
R 165 000,00
How much tax can R3,000 a month in RA contributions save?
For a person aged 30 with R600,000 annual taxable income, R36,000 annual retirement-annuity contributions produce an estimated R 12 960,00 annual income-tax reduction using 2025/26 tables, assuming the contribution is eligible and no other retirement contributions use the limit.
Calculation method
Compare annual income tax before and after the eligible deduction, applying the calculator's combined retirement-contribution cap.
Uses historical 2025/26 tables, not later-year rates. This simplified estimate is not a promised refund: other contributions, deductions and your actual assessment affect the outcome.
Reference: SARS 2025/26 Budget Tax Guide. Examples are calculated by Randwise, not quoted from the reference.