South Africa TFSA Calculator
Project your SA Tax-Free Savings Account over time. Compare with taxable savings to see how much tax you save on interest, dividends, and gains.
Details
Result
TFSA Ending Balance
R2,018,688
Equivalent Taxable Balance
R1,714,389
TFSA Tax Savings
R304,299
Total Contributed
R720,000
Tax-Free Growth
R1,298,688
Lifetime Cap Used
R500,000
What a TFSA actually shields
Inside a TFSA you pay zero tax on interest, dividends, or capital gains for life — no Dividend Withholding Tax (DWT, normally 20%), no CGT (up to 18% effective for top earners), no interest exemption-limit anxiety. Outside a TFSA, a growing equity portfolio can leak 25-35% per decade to tax on rebalancing alone.
Contribution limits
R36,000 per tax year (R3,000/month is the common cadence), R500,000 lifetime. Over-contribute by even R1 and SARS slaps 40% penalty tax. Limits are harmonised across all providers — SARS tracks cumulative contributions across Easy Equities, Sygnia, 10X, Satrix, Allan Gray, Investec, and every bank. Exceeded your limit? Move the excess out immediately.
What can you hold?
JSE-listed ETFs, unit trusts, fixed deposits, and cash products from TFSA-registered providers. Individual shares are not allowed. The sweet spot for long-term wealth: low-cost global equity ETFs like Satrix MSCI World, Coreshares S&P 500, or Sygnia 4th Industrial Revolution. Stick to one or two broad trackers; fees and switching costs matter enormously over 40 years.
Withdrawal rules
Withdraw anytime, tax-free — but the limit does not reset. If you contribute R36k then withdraw R20k, you have R0 annual room left — you cannot re-contribute that R20k. Treat the TFSA as a permanent long-term wealth vehicle. For short-term savings goals, use a regular money market account instead.
Frequently Asked Questions
Everything you need to know, in one place.
TFSA limits?
R36,000 per tax year (R3,000/month is the most common cadence) and R500,000 lifetime. Hitting the lifetime cap takes ~14 years at full annual contribution. Over-contributions attract 40% penalty tax — SARS tracks across all providers.
What can I hold in a TFSA?
JSE-listed ETFs, unit trusts, fixed deposits, and cash products from registered providers (Easy Equities, Satrix, Sygnia, Allan Gray, Investec, Standard Bank, Absa, Nedbank, FNB, Coronation). Individual shares are not allowed.
TFSA vs RA?
TFSA: access anytime, no tax on interest/dividends/gains, smaller R36k/yr cap. RA: upfront tax deduction at marginal rate (up to 45% saving), locked until 55, 27.5% of income cap. Best strategy: max RA for tax deduction, then use TFSA for remaining savings.
Can I withdraw from my TFSA?
Yes — anytime, tax-free. But withdrawals do not restore the annual/lifetime limit. If you contribute R36k then withdraw R20k, you cannot re-contribute that R20k — your limit is already used. Treat the TFSA as a long-term vehicle for maximum benefit.
Should I open TFSAs for my children?
Yes — parents can open TFSAs in a minor's name (with the child as beneficial owner). Contributions count against the child's R500k lifetime limit, not the parent's. Starting at birth and maxing R36k/year, a child's TFSA could reach R500k by age 14 and compound tax-free to R5-R8 million by age 60 based on 8%-10% real returns. Powerful multigenerational wealth vehicle. Note: the child legally controls the account from age 18, so align with your family's values and risk appetite.
Best TFSA investment choices for long-term growth?
With R500k lifetime cap and 40+ year horizon, prioritise growth: offshore equity ETFs (Satrix MSCI World, Coreshares Total World, Sygnia 4th Industrial Revolution) avoid forex complications while giving global diversification. SA equity index (Satrix 40, Satrix Capped All Share) for domestic exposure. Avoid: cash/bank products (waste the tax shelter on low returns), high-fee unit trusts (1.5%+ TER compounds against you). Rebalance once a year; minimise trades — you cannot replace withdrawn contributions.
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