Tax-Free Portion
R550,000.00
Tax on Withdrawal
R101,700.00
Net Proceeds
R898,300.00
Effective Rate
10.20%
Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — figures refreshed at the start of each tax year.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic South Africa planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Withdrawal Amount (R)
1000000
Withdrawal Type
Retirement (lump sum at retirement)
After entering these figures, review tax-free portion, tax on withdrawal and net proceeds together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Tax-Free Portion
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Tax on Withdrawal
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Net Proceeds
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Effective Rate
The effective rate lets you compare options on a true like-for-like basis rather than being misled by different compounding periods or fee structures. Use it to cut through headline marketing rates when shortlisting providers or products.
Method & assumptionsAuthoritative sources
This calculator applies the 2024/25 SARS retirement fund lump sum tax tables. For withdrawals at retirement, the first R550,000 is tax-free (cumulative lifetime limit), then 18% on the next R220,000, 27% on the next R440,000, and 36% above R770,000 of the taxable portion. For resignation or retrenchment withdrawals, the tax-free threshold drops to R27,500 (cumulative lifetime), with 18% on the first R660,000 of taxable amount, 27% on the next R330,000, and 36% above that. Both sets of tables are distinct from the tables used for withdrawal before retirement on grounds of disability or emigration. Note that the two-pot retirement system (effective 1 September 2024) introduces a new category of savings pot withdrawal taxed at marginal income tax rates — not via these tables. This calculator covers the traditional lump sum tables only. Always obtain a SARS tax directive through your fund administrator before any withdrawal to determine the exact tax payable.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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End-of-article next steps
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