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Glossary term

Tax-Free Savings Account (ZA)

Tax-free investment cap R36k/year

🇿🇦South Africa · Tax Year 2026/27Reviewed Plain-English
Definition

What is Tax-Free Savings Account (ZA)?

South Africa's TFSA lets you invest up to R36,000 per year (lifetime cap R500,000) in any listed security/mutual fund. Growth, dividends, and withdrawals are all tax-free. Exceeding limits triggers a 40% penalty. Kids can have their own TFSA from birth — powerful long-run compounding tool.

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