TFSA Limits 2026/2027 — R46,000 a Year, R500,000 Lifetime

The new annual limit

SARS: from 1 March 2026 the annual tax-free investment contribution limit is R46,000 (it was R36,000). The lifetime contribution limit remains R500,000 across all your tax-free accounts. Growth, interest, and dividends inside the account are exempt. Withdrawals are not taxed as income.

The 40% penalty

Contribute more than the annual or lifetime limit and SARS levies 40% on the excess. The limit is across every TFSA you hold, not per product. Re-depositing a withdrawal counts as a new contribution.

Interest exemption is separate

The section 10(1)(i) interest exemption (R23,800 under 65 / R34,500 65+) applies to taxable South African-source interest outside a TFSA. Interest inside a TFSA does not use up that exemption — it is already exempt.

Not a deduction

Putting money into a TFSA does not reduce taxable income the way an RA does. It shelters the return. If you want a deduction, that is section 11F on an approved retirement fund, with its own cap.

Questions

What is the TFSA annual limit from 1 March 2026?

R46,000. Lifetime contributions remain capped at R500,000.

Is a TFSA contribution tax-deductible?

No. It shelters growth. Retirement annuity contributions are the usual deductible savings vehicle (section 11F).