How Much Tax Does SARS Take From Your Two-Pot Withdrawal?
Everyone's asking the same question: how much will SARS actually take from my two-pot withdrawal?
The answer? It depends on what you earn.
Let me show you real examples with actual numbers. No theory. Just what people are actually paying in 2026.
The Short Version
If you earn R20k/month, SARS takes about 18% of your withdrawal.
If you earn R40k/month, they take about 25%.
If you earn R80k/month, they take about 35%.
The more you earn, the more they take. Simple as that.
Why It's Different For Everyone
Two-pot withdrawals get taxed as income. Not at some flat rate - at YOUR tax rate based on what you earn annually.
SARS basically says: "ok, you earned X this year. Now you're adding Y from your retirement. What's the tax on that extra Y?"
That's why there's no single answer. Your tax rate is different from your neighbour's.
Real Examples
Let's look at what actual people are paying. These are based on 2026 SARS tax brackets.
Example 1: Entry-Level (R15,000/month)
Annual salary: R180,000
Withdrawal: R10,000
Tax paid: R1,800 (18%)
You get: R8,200
Tax is lower because you're in the 18% bracket. First R237k is taxed at 18% or less.
Example 2: Mid-Career (R40,000/month)
Annual salary: R480,000
Withdrawal: R15,000
Tax paid: R3,900 (26%)
You get: R11,100
You're in the 26% bracket. Most common scenario for people withdrawing.
Example 3: Senior (R80,000/month)
Annual salary: R960,000
Withdrawal: R20,000
Tax paid: R7,200 (36%)
You get: R12,800
Higher earners pay more. You're in the 36% bracket for any additional income.
Example 4: Executive (R150,000/month)
Annual salary: R1,800,000
Withdrawal: R25,000
Tax paid: R11,250 (45%)
You get: R13,750
Top bracket. SARS takes nearly half. Ouch.
The Mistake Everyone Makes
People hear "I'm in the 31% tax bracket" and think SARS will take 31% of their withdrawal.
Not quite.
Your marginal rate (the bracket you're in) is different from the effective rate on your withdrawal. SARS calculates the exact tax based on your total annual income plus the withdrawal amount.
It's usually close to your marginal rate, but not always exact. Could be a bit higher or lower depending on where you sit in the bracket.
What About Bonuses?
Good question. If you got a bonus this year, that counts toward your annual income.
Say you normally earn R40k/month (R480k/year), but you got a R50k bonus in December. Your annual income for tax purposes is R530k, not R480k.
Which means your two-pot withdrawal gets taxed at a higher rate.
Same goes for commission, overtime, anything that shows up on your IRP5.
When You Withdraw Matters
Here's something most people dont think about: timing.
If you withdraw in March (start of tax year), SARS calculates based on your expected annual income for the new year.
If you withdraw in February (end of tax year), they calculate based on what you've already earned this year.
Could make a difference if your income changed significantly mid-year. Got a raise? Might want to withdraw before it kicks in. Got retrenched? Might pay less tax if you withdraw after your last full paycheck.
Not financial advice, just math.
Can You Get a Refund?
Sometimes, yeah.
If your retirement fund over-estimated your annual income and withheld too much tax, you'll get it back when you file your tax return.
But don't count on it. Most funds are pretty accurate these days. And "getting it back next year" doesn't help if you needed the full amount now.
Calculate Your Real Number
Look, I can give you examples all day. But your situation is different.
Different salary. Different withdrawal amount. Maybe you have medical aid credits. Maybe you're over 65 and get a higher tax threshold.
Only one way to know for sure: run the numbers.
Takes literally 30 seconds. You put in your salary, put in how much you want to withdraw, and it shows you:
- Exactly how much tax SARS will take
- What actually hits your bank account
- What you're giving up in retirement income
Then you can decide if it's worth it or not. At least you'll know what you're walking into.