Two-Pot Tax 2026: How Much SARS Takes from Your Withdrawal

Last verified 2026-05-14

The rule

Savings-pot withdrawals are taxed at your MARGINAL income-tax rate - the same rate as if you had earned that amount as salary. This is NOT a flat rate. It depends on your total taxable income for the tax year (1 March - 28/29 February).

Your 2026/27 marginal-rate bands

Income up to R245,100 - 18% marginal rate
R245,101 - R383,100 - 26%
R383,101 - R530,200 - 31%
R530,201 - R695,800 - 36%
R695,801 - R887,000 - 39%
R887,001 - R1,878,600 - 41%
Above R1,878,600 - 45%

If you withdraw R30,000 from the savings pot and your other taxable income is R350,000, the withdrawal pushes you across the R383,100 boundary. The PORTION above R383,100 is taxed at 31%, the portion below at 26%. SARS calculates this for you in the tax directive.

Worked examples

Earning R20,000/month (R240k/yr), withdrawing R15k: tax is R15k x 18% = R2,700. You take home R12,300.
Earning R35,000/month (R420k/yr), withdrawing R30k: tax is R30k x 31% = R9,300. You take home R20,700.
Earning R80,000/month (R960k/yr), withdrawing R100k: tax is R100k x 41% = R41,000. You take home R59,000.
Earning R20,000/month, withdrawing R100k: pushes you up to R340k taxable. Tax is a blend - approximately R20k at 18% (R3,600) + R80k at 26% (R20,800) = R24,400. Take-home R75,600.

Old SARS debts: the trap that surprises everyone

From SARS 2026 guidance: "If you owe SARS money - whether from an old tax return, a late filing penalty, or an unpaid administrative fine - they will take it directly from your Two-Pot withdrawal before you see a cent."

Common debts that catch people:

Late filing penalties on old ITR12s (around R250/month per missed return)
Unfiled tax returns for years you thought were dormant
Outstanding admin penalties from years ago
Provisional tax estimates that came in higher than expected

Before applying for the withdrawal, log in to eFiling and check your "Statement of Account". Clear any debts or set up a payment arrangement BEFORE applying, otherwise SARS will siphon the debt out of your payout.

Frequently asked questions

Is the marginal rate 18% or 45%?

Neither - it depends on your total taxable income for the year. Use the bands above. If your other income is R240k or less, your savings-pot withdrawal is taxed at 18% (the lowest bracket).

Will my employer know about the withdrawal?

Indirectly. The savings-pot withdrawal appears on your ITR12 as additional income. Your employer issues your IRP5 for the salary portion only; the withdrawal is reflected through your fund's IT3(a) or IRP5.

What if SARS deducts more than my marginal rate?

It can happen if SARS estimates your full-year income differently to your situation. You reconcile when you file your annual ITR12 - any over-deduction is refunded as part of your refund.

General guidance, not financial advice. Sourced from SARS, National Treasury two-pot FAQ Aug 2024 updates, and major SA retirement fund administrators. Last verified 2026-05-14. For your specific situation, talk to your retirement fund or an independent financial planner.