TFSA contribution limits
A tax-free savings account (TFSA) is one of the simplest tax breaks in South Africa. All the growth and every withdrawal is tax-free. In return, SARS caps how much you can put in.
The two limits
| Limit | Amount |
|---|---|
| Annual | R46,000 per tax year (raised from R36,000 in the 2026 Budget, effective 1 March 2026) |
| Lifetime | R500,000 in total |
Both limits are per person, and they count your contributions across all your tax-free accounts combined, not per account. Open three TFSAs if you like, but R46,000 a year is the total across all of them.
Only what you put in counts
The limits measure contributions, not balance. Growth is free. If you put in R46,000 and it grows to R55,000, you haven't used any extra room. That's the whole point: leave it to compound.
Withdrawals don't give room back
This is the rule that catches people out. If you contribute R46,000 this year, then withdraw R20,000, you can't top that R20,000 back up. The withdrawal is gone from your annual and your lifetime room for good.
So a TFSA works best as money you can leave alone. It's accessible in a pinch, but every rand you take out is room you can't rebuild.
Go over, and SARS charges 40%
Contribute more than R46,000 in a year, or more than R500,000 over your lifetime, and SARS taxes the excess at 40%. On a R5,000 over-contribution that's R2,000 in penalty, which wipes out years of the tax benefit. Watch this if you have debit orders running into more than one account.
Moving between providers
You can move a TFSA from one provider to another as a transfer without it counting as a new contribution. Don't withdraw and redeposit yourself, that burns your room. Ask the receiving provider to do a TFSA transfer directly.
How to make the most of it
- Aim to fill the R46,000 each year if you can. At that pace you reach the R500,000 lifetime cap in about 11 years, then let it grow untouched.
- Hold growth assets you plan to keep for years, so the tax-free compounding has time to matter.
- Keep one account if you can, to make tracking the limit easy.
Related guides
- TFSA vs retirement annuity: how a TFSA compares with locking money into an RA.
- What is a TER?: the fund fees that eat into even a tax-free account.