Investing

Tax-Free Savings Account (TFSA) Calculator 2026

See how much your tax-free savings can grow with the R36,000 annual and R500,000 lifetime limits — and how much tax you save versus a normal investment.

✓ Updated with 2026 rates•✓ Free & no sign-up•✓ Instant results

Tax-Free Savings Account growth

Live estimate · R36,000/yr · R500,000 lifetime · 2026

Monthly contribution

R3 000/month maxes out the R36 000 annual limit

Initial lump sum deposit

One-time deposit at the start

Expected annual return

Historical JSE returns: ~10% p.a. long-term

Investment period: 10 years

1 – 40 years

Current ageCurrent TFSA balance

Current value if you already hold a TFSA

Total contributed to date

Amount contributed (not value). Remaining room: R500 000

Final tax-free value

R468 735

after 10 years at 10% p.a.

Total contributions

R360 000

Investment growth

+R108 735

Tax saved vs taxable

R13 483

Return on investment

30.2%

Contributing R2 167 per month to a TFSA for 10 years at 10% could grow tax-free to about R468 735, saving roughly R13 483 in tax versus a taxable account.

Exceeds annual limit

Your planned annual contribution (R44 800) exceeds the R36 000 annual limit, so it has been capped at R36 000. SARS charges a 40% penalty on excess contributions.

Your contribution room

Annual limit (2024/25)

R36 000/yr

Lifetime limit

R500 000

Contributed so far

R360 000

Remaining lifetime room

R140 000

At this rate you'll max out your lifetime limit in about 3.9 years (age 33).

Why a TFSA beats a taxable account

No capital gains tax, dividends tax or income tax on any growth
R36,000 per tax year (Mar–Feb); unused allowance does not roll over
R500,000 lifetime contribution limit across all your TFSA accounts
Over-contributions attract a 40% SARS penalty on the excess

Estimates assume returns compound monthly and a 12.4% effective CGT rate for the comparison. This is an independent estimate, not financial advice.

What is a Tax-Free Savings Account?

A TFSA is a government-approved investment account where all growth, interest and dividends are 100% tax-free. It is one of the most effective ways to build wealth in South Africa without losing returns to capital gains tax, dividends tax or income tax.

R36,000 annual limit

Contribute up to R36,000 per tax year (Mar–Feb). Unused allowance does not roll over.

R500,000 lifetime limit

Total contributions are capped at R500,000 over your lifetime — track this carefully.

100% tax-free growth

No CGT, dividends tax or income tax on any returns. All growth is yours.

Flexible access

Withdraw any time — but the contribution room you used is lost forever.

TFSA vs a taxable investment

✓ TFSA (tax-free)

0% tax on capital gains, dividends and interest. Keep 100% of returns. R100k growth = R100k to you.

✕ Regular investment (taxable)

CGT, 20% dividends tax and interest taxed at your marginal rate. You typically lose ~12–18% of returns.

TFSA rules & penalties (2026)

Contribution limits

R36,000 per tax year, R500,000 lifetime. Unused annual allowance is lost — use it or lose it.

Over-contribution

SARS charges 40% on the excess. R4,000 over the limit = R1,600 penalty.

Withdrawals

Allowed any time with no penalty, but the contribution room used is not restored.

Where to open a TFSA in South Africa

Banks (easy access)

Discovery Bank, Capitec, Nedbank and FNB offer TFSAs via money market, fixed deposits, unit trusts and ETFs. Simple to open, but often higher fees and fewer options.

Investment platforms (lower fees)

EasyEquities, Satrix, Allan Gray and 10X Investments offer low-cost ETFs and index funds — better long-term growth potential for a small amount of extra setup.

Frequently asked questions

Quick answers to the most common questions.

What is the TFSA contribution limit for 2026 in South Africa?

You can contribute up to R36,000 per tax year (1 March – 28/29 February) and R500,000 over your lifetime. Unused annual allowance does not roll over to the next year.

How much tax do you pay on a TFSA?

Nothing. All interest, dividends and capital growth inside a Tax-Free Savings Account are 100% exempt from income tax, dividends withholding tax and capital gains tax — you keep every rand of growth.

What happens if I over-contribute to my TFSA?

SARS charges a 40% penalty on the excess. For example, contributing R40,000 in a year (R4,000 over the R36,000 limit) triggers a R1,600 penalty. Track contributions across all your TFSA accounts.

Can I withdraw from my TFSA?

Yes, anytime and without penalty. But the contribution room you used is lost forever — withdrawing R50,000 does not give you R50,000 of room back. A TFSA is best treated as a long-term wealth builder.

Is a TFSA better than a normal investment account?

For long-term growth, almost always. A taxable account loses roughly 12–18% of returns to CGT, dividends tax and interest tax, while a TFSA keeps 100%. The longer your horizon, the bigger the tax-free advantage.

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