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TFSA Growth Calculator

Project your South African Tax-Free Savings Account using the R46,000 annual limit from 1 March 2026 and the R500,000 lifetime limit, then compare it with a simplified taxable-account model.

Updated 20 August 2026 • By Sipho Dlamini • Fact-checked

TFSA Projection

Section 12T · 2026/27 caps

Monthly contribution R3 000 (R36 000/yr)

Annual cap is R46 000 (R3 833/month).

Already contributed (lifetime) R0

Years to project 20 years

Real return / year

Your marginal tax rate (%)

TFSA value after 20 years

R1 131 545

Today's rand · contributed R500 000

Same money in a taxed account

R842 708

Tax saved by using a TFSA

R288 838

You'll hit the lifetime cap in year 14

Contributions stop there; the pot continues to grow tax-free.

Real (after-inflation) return assumed. The "taxed account" applies your selected marginal rate to all growth annually as a simple illustration; it is not a precise model of interest exemptions, dividends or capital gains.

Year-by-year projection

Year	Total contributed	TFSA value	Taxed equivalent	Tax saved
1	R36 000	R38 160	R37 382	R778
2	R72 000	R78 610	R76 200	R2 409
3	R108 000	R121 486	R116 509	R4 977
4	R144 000	R166 935	R158 365	R8 570
5	R180 000	R215 111	R201 829	R13 283
6	R216 000	R266 178	R246 961	R19 217
7	R252 000	R320 309	R293 827	R26 482
8	R288 000	R377 687	R342 492	R35 195
9	R324 000	R438 509	R393 027	R45 482
10	R360 000	R502 979	R445 501	R57 478
11	R396 000	R571 318	R499 991	R71 327
12	R432 000	R643 757	R556 573	R87 184
13	R468 000	R720 542	R615 328	R105 215
14	R500 000	R797 695	R672 185	R125 510
15	R500 000	R845 557	R697 997	R147 560
16	R500 000	R896 290	R724 800	R171 490
17	R500 000	R950 067	R752 632	R197 435
18	R500 000	R1 007 071	R781 533	R225 538
19	R500 000	R1 067 496	R811 544	R255 951
20	R500 000	R1 131 545	R842 708	R288 838

TFSA rules in plain English

· Maximum R46 000 per tax year, R500 000 over your lifetime.
· Over-contribution penalty: 40% of the excess (paid to SARS, ouch).
· No tax on dividends, interest or capital gains inside the TFSA - ever.
· Withdrawals are fully tax-free but don't reset your lifetime cap.
· You can hold cash, bonds, unit trusts, ETFs or shares (subject to provider).
· Each person can have unlimited TFSAs but caps apply across all of them combined.

Plan around the R46,000 annual limit

A flat R3,833.33 monthly contribution totals R45,999.96, so a small final adjustment uses the full annual limit. Track contributions across all providers: unused annual room is lost, while excess contributions attract the 40% tax.

Frequently asked questions

How much can I contribute to a TFSA in 2026/27?+

Up to R46 000 per tax year from 1 March 2026, subject to the unchanged R500 000 lifetime limit. The annual cap applies to your combined contributions across every TFSA provider.

What happens if I contribute more than R46,000 in a year?+

SARS imposes a 40% tax on the excess contribution. Providers do not coordinate the cap for you, so add together contributions to every TFSA before making another deposit.

Can I withdraw from a TFSA?+

Yes, any time. But withdrawals don't reset your lifetime cap - if you contribute R100,000 then withdraw it, you can only contribute another R400,000 over your lifetime. Treat the TFSA as a one-way ratchet.

Is a TFSA better than a retirement annuity?+

They solve different problems. Qualifying retirement-fund contributions can reduce taxable income but retirement products have statutory access and withdrawal rules. TFSA contributions are not deductible, while qualifying returns and withdrawals are tax-free. Compare your time horizon, access needs, fees and tax position rather than treating either wrapper as universally better.

What can I hold in a TFSA?+

A TFSA is a tax wrapper, not one product. Depending on the provider, it can contain qualifying cash deposits, unit trusts, ETFs and other permitted investments. Match the investment risk and access rules to your goal, then compare fees.

Can I have multiple TFSAs?+

Yes, but the combined R46 000 annual and R500 000 lifetime limits apply across all of them. SARS counts contributions, not the number of accounts.

Official source: SARS Tax Free Investments - annual and lifetime limits, withdrawal treatment and the 40% excess-contribution tax.

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