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Tax-free savings account limit

A tax-free savings account has a yearly limit and a lifetime limit. The site shows the current figures as facts. If you put in more than the yearly limit, a penalty applies to the excess.

The limits, and what happens above them

Each constant as the revenue service prints it, with the day it took effect where the page gives one, and the day we read it.

TFSA · contributions a tax year
46,000ZAR
per person, March to February; raised from the earlier yearly limit
SARS: tax-free investments 4
TFSA · contributions over a lifetime
500,000ZAR
per person, across every provider
SARS: tax-free investments 4
Tax on contributions above a limit
40%
of the excess, on the amount above the annual or lifetime limit
SARS: tax-free investments 4

Not tax advice. Figures are copied from the revenue service's page; the penalty is applied on assessment.

What happens when you go over the limit

The yearly limit is the most you can contribute to all tax-free savings accounts in a tax year. The lifetime limit is the most you can contribute over your whole life. The site displays both limits as facts.

If your contributions in a tax year exceed the yearly limit, the penalty applies to the excess amount. The penalty is a tax on the amount above the limit. The site shows the penalty as a fact.

The penalty is not a fee charged by the provider. It is a tax that applies to the excess contribution. You may need to declare the excess to the revenue authority.

How to track your contributions across providers

You can hold tax-free savings accounts at more than one provider. The yearly limit applies to the total of all your contributions, not to each account separately.

Keep your own record of every contribution you make, including the date and the amount. Ask each provider for a statement that shows your contributions for the tax year.

Before you contribute, add up what you have already put in across all providers. Compare that total with the yearly limit shown on this site.

A common mistake

A common mistake is to treat each provider's limit separately. The yearly limit applies to the total of all your tax-free savings accounts, so spreading contributions across providers does not increase the limit.

Sources and read dates

Every figure on this page points to one of these. The date on the right is the day we read the source.

  1. 4Revenue serviceSARS: tax-free investmentswww.sars.gov.zaTFSA limits, penalty and tax treatment