Savings Interest Tax Calculator (South Africa)

What you really earn on your savings after tax in South Africa

A bank advert quotes you a rate, but the number that matters is what lands in your pocket after tax. In South Africa the interest your savings earn is added to your taxable income and taxed at your marginal rate, so an advertised 8 percent can quietly become closer to 6 percent once your taxable interest climbs past the exemption. This free savings interest tax calculator turns the rate into your real after-tax return, applying the annual interest exemption and your own tax position, this year and as the money compounds.

The good news for most savers is the interest exemption. For 2026/27 you can earn R23,800 of interest a year tax free if you are under 65, and R34,500 from age 65. At a rate of 8 percent that shields the interest on roughly R297,500 of savings for a younger saver, and about R431,000 for an older one, so a great many people pay no tax on their interest at all. The trap is that the exemption is a fixed rand amount, it does not grow with your balance, so once your savings climb past that point a bigger and bigger slice of the interest becomes taxable. The calculator shows exactly where that line falls for your rate and age.

Put in how much you have saved, the rate you earn and your income or marginal tax rate, and the tool shows the interest you keep after tax, the effective rate that works out to, and how it compounds over the years you choose. It also flags the Tax-Free Savings Account, where interest is never taxed, as a better home for long-term money once an ordinary account starts to be taxed. For a closer look at how they work and which accounts stand out, see our guide to tax-free savings in South Africa. To find the best rate to plug in, compare current savings and money market rates, or browse all our free South African tools and calculators.

How much interest can you earn tax free?

The quick rule is to divide your exemption by your interest rate. At 8 percent, R23,800 divided by 0.08 is about R297,500, the balance whose interest just fills the under 65 exemption. Hold less than that and your interest is tax free, hold more and only the interest above the exemption is taxed, at your marginal rate. A higher rate fills the exemption with a smaller balance, so the more your money earns the sooner tax starts to bite. From age 65 the larger R34,500 exemption lifts that tax free balance to roughly R431,000 at the same rate. Remember the exemption is shared across every account you hold, so add up all your interest for the year before working it out.

Tax on fixed deposit, bank and money market interest

The same rules apply whatever kind of cash account you hold. Interest from a fixed deposit, a bank savings or call account, a notice deposit, SA Retail Bonds or a money market fund is all treated as local interest, added together for the year and covered by the one SARS interest exemption. So this works as a fixed deposit tax calculator, a bank interest tax calculator and a money market interest calculator in one. Add up the interest from every account, put your total and your rate in above, and you will see how much tax you pay on the interest earned and the return you actually keep. Dividends and the growth inside a Tax-Free Savings Account are taxed differently and sit outside this exemption.

How South Africa taxes different kinds of investment income

Interest is only one kind of investment income, and each kind is taxed in its own way. This calculator deals with the first row, the interest on your cash savings, but it helps to see where that sits next to the others.

Frequently asked questions

Is the interest on my savings taxed in South Africa?

Yes. Interest from a South African bank account, fixed deposit, notice account or money market fund is added to your taxable income and taxed at your marginal rate, the rate on your top slice of income. Most people do not realise this, because the bank pays the interest in full and the tax is settled later through your assessment. The saving grace is the annual interest exemption, which lets a large number of smaller savers pay nothing at all. The calculator above works out whether any of your interest is actually taxed and what you keep after it.

How much tax do I pay on interest earned in South Africa?

It depends on three things, how much interest you earn, your age, and your other income. The first R23,800 of interest is tax free if you are under 65, or R34,500 from age 65. Anything above that is added to your income and taxed at your marginal rate, so a saver in the 26 percent bracket keeps 74 percent of the interest above the exemption, while one in the top 45 percent bracket keeps 55 percent of it. If your total income is below the tax threshold you pay no tax at all, even on interest above the exemption. Enter your own figures in the calculator above and it shows the exact tax and the after-tax return for your situation.

How much interest can I earn before I pay tax?

Every individual gets a yearly interest exemption. For the 2026/27 tax year it is R23,800 if you are under 65 and R34,500 from age 65. Only interest above that amount is taxed. At a rate of 8 percent, the R23,800 exemption covers the interest on roughly R297,500 of savings, so someone under 65 with less than that in the bank usually pays no tax on it. From age 65 the higher exemption covers about R431,000 at the same rate. The exemption is a single yearly allowance shared across all your accounts, not one per account.

How is the tax on my interest worked out?

First the exemption is taken off your total interest for the year. Whatever is left is added on top of your other taxable income and taxed at your marginal rate. So the tax depends on your income, not on the interest alone. A person whose income sits in the 26 percent bracket pays 26 percent of the taxable interest, while someone in the top 45 percent bracket pays far more on the same interest. If your total income is below the tax threshold, R99,000 under 65 for 2026/27, you pay nothing even on interest above the exemption. The income option in the calculator handles all of this for you.

Do I pay tax on fixed deposit and money market interest?

Yes, fixed deposit and money market interest is taxable, but the same interest exemption applies to it. The exemption applies to interest from any South African source, which includes bank savings and call accounts, fixed and notice deposits, SA Retail Bonds, and the interest distributed by money market unit trusts. It does not cover dividends, which are taxed separately, or the interest inside a Tax-Free Savings Account, which is already free of tax. If you hold several of these, add up all the interest for the year, because they share the one exemption.

What is a Tax-Free Savings Account and is it better?

A Tax-Free Savings Account, or TFSA, is a special account in which all the interest, dividends and growth are free of tax for life, and it does not use up your normal interest exemption. You can pay in up to R36,000 a year and R500,000 over your lifetime, and going over those limits is penalised, so it suits money you can leave invested rather than an emergency fund you dip into. For long-term savings, filling a TFSA first is often the smarter move, especially once an ordinary account starts pushing you past the interest exemption.

Do I have to declare small amounts of interest?

It is best to. Banks and fund managers report the interest they pay you to SARS each year on an IT3(b) certificate, so SARS already knows about it, and the amount is usually filled in on your tax return for you. Even when the interest is below the exemption and no tax is due, declaring it keeps your return accurate and avoids queries later. You simply enter the total interest, and the exemption is applied automatically in your assessment.

Does the exemption change when I turn 65?

Yes. In the tax year you turn 65 your interest exemption rises from R23,800 to R34,500, and you also pick up an extra tax rebate that lowers your overall tax. A further rebate is added from age 75. This is why older savers can hold a larger balance before any interest is taxed. Choose your age band in the calculator and it applies the right exemption and rebates.

This calculator gives estimates using the 2026/27 SARS tax tables and the local interest exemption, it is general information and not tax advice. It assumes the interest is from a South African source and that you are a South African tax resident, and it does not handle dividends, foreign interest, or interest earned inside a company or trust. Rates and your income can change through the year, so treat the figures as a guide and confirm your own position with SARS or a tax practitioner. Last reviewed June 2026.