Is Section 11F just 27.5% of my salary?

No. 27.5% of the greater of defined remuneration or taxable income (with statutory exclusions) is only one test. Your deductible amount is the least of the applicable statutory tests — including that percentage test and the annual rand cap of R430,000 for 2026/27 — after subtracting known claimable contributions (employer and personal). Treating “27.5% of salary” as the whole rule overstates room for many people.

Do employer retirement contributions use my Section 11F room?

Yes. Qualifying employer and personal retirement-fund contributions both use the same deduction headroom for the tax year. If your payslip already shows large pension or provident contributions, that amount reduces how much additional personal RA contribution you can still deduct under Section 11F.

Is Section 11F room the same as TFSA contribution room?

No. TFSA room is a contribution cap (R46,000 annual / R500,000 lifetime for 2026/27 across all TFSAs). Section 11F is an income-tax deduction limit for qualifying retirement-fund contributions. You can have TFSA room left and no Section 11F headroom left — or the reverse. See the TFSA limits guide and the TFSA vs RA comparison.

What happens if I contribute more than my Section 11F headroom?

Amounts above the deductible limit for the year are generally not deductible in that year. Depending on the rules that apply to you, some excess may be carried forward or treated as non-deductible. Do not assume every rand into an RA reduces this year’s tax. Confirm with SARS material or a registered practitioner when your situation is complex.

Guide

How Section 11F retirement deduction room works in South Africa

For the tax year 1 March 2026 – 28 February 2027, the amount you can deduct for qualifying retirement-fund contributions under Section 11F is the least of the applicable statutory tests — including 27.5% of the greater of defined remuneration or taxable income (with statutory exclusions), and an annual rand cap of R430,000 — after subtracting known claimable contributions (employer + personal).

“27.5% of salary” alone is not the rule. Employer contributions eat the same headroom, and TFSA contribution room is a different limit entirely.

Section 11F limits at a glance (2026/27)

Item	Amount / rule	Notes
Tax year	1 Mar 2026 – 28 Feb 2027	Not calendar year
Percentage test	27.5%	Of the greater of defined remuneration or taxable income (with statutory exclusions)
Annual rand cap	R430,000	One of the lesser-of tests
Deductible amount	Least of applicable tests	After subtracting known claimable contributions
Who uses the room	Employer + personal	Both qualify against the same headroom

Planning estimates only, not SARS-verified. Refresh after each National Budget — figures may change. Confirm against current SARS material before acting.

The problem: the “27.5% of salary” myth

Personal Finance ZA, EasyEquities, and FIRE SA threads constantly ask “how much can I still put in my RA for a tax deduction?” Answers often stop at 27.5% of salary. That shortcut skips three things that change the number:

The deductible amount is the least of several tests — the percentage test and the R430,000 annual rand cap (among others that may apply)
Employer pension / provident / similar contributions already use the same headroom
TFSA room (R46,000 annual / R500,000 lifetime) is unrelated to Section 11F deduction room

Mixing those up is how people over-contribute expecting a deduction they will not get, or under-contribute because they think employer amounts somehow sit outside the limit.

What counts / what to track

Remuneration and taxable income context — needed for the 27.5% test (greater of defined remuneration or taxable income, with statutory exclusions)
Employer retirement contributions year-to-date — from payslips / IRP5-style totals; they reduce remaining deductible headroom
Personal RA / retirement contributions year-to-date — every qualifying personal contribution counts against the same ceiling
Prior disallowed / carry-forward amounts — if unknown, treat deductible estimates as incomplete until you confirm them
Tax year boundary — 1 March to 28 February, not January to December

For TFSA caps (a different limit), see TFSA contribution limits for 2026/27 and tracking TFSA room across providers . To compare the same rand into TFSA vs RA, see how to compare TFSA vs RA .

Worked example (illustrative only)

Remuneration for the year is about R800,000 (assume taxable income is not higher for this simplified illustration). Employer retirement contributions year-to-date are R90,000. Personal RA contributions year-to-date are R40,000. No known prior disallowed carry-forward.

Percentage test: 27.5% × R800,000 = R220,000
Rand cap: R430,000
Lesser of those tests: R220,000 (percentage binds; the R430,000 cap is higher here)
Already claimable: R90,000 + R40,000 = R130,000
Remaining deductible headroom: R220,000 − R130,000 = R90,000

If someone only calculated “27.5% of salary” and ignored the R130,000 already contributed, they would think they still had R220,000 of deduction room — almost R130,000 too high.

On higher income the R430,000 cap can bind instead. Example: if the percentage test produced R550,000, the lesser-of amount before subtracting contributions would be R430,000, not R550,000. Your real binding limiter may be the percentage test, the rand cap, or another applicable statutory test — run your own numbers rather than copying this illustration.

Open the TFSA vs RA calculator

Spreadsheet vs calculator / tracker

A spreadsheet with columns for remuneration, employer contributions, personal RA totals, 27.5%, and R430,000 works if you update it after every payslip and contribution. Most people forget one row — usually the employer amount — and the Budget can change the rand figures.

Libevyn’s free TFSA vs RA calculator estimates Section 11F headroom, ceiling, remaining room, and which limiter binds from numbers you enter. The TFSA vs RA guide and Scenarios-style comparison use the same kind of trade-off view. A dedicated in-app Section 11F deduction-headroom card for subscribers is on pricing as shipping as released — do not assume that card is live yet. Manual entry; no bank passwords.

Frequently asked questions

Is Section 11F just 27.5% of my salary?: No. 27.5% of the greater of defined remuneration or taxable income (with statutory exclusions) is only one test. Your deductible amount is the least of the applicable statutory tests — including that percentage test and the annual rand cap of R430,000 for 2026/27 — after subtracting known claimable contributions (employer and personal). Treating “27.5% of salary” as the whole rule overstates room for many people.
Do employer retirement contributions use my Section 11F room?: Yes. Qualifying employer and personal retirement-fund contributions both use the same deduction headroom for the tax year. If your payslip already shows large pension or provident contributions, that amount reduces how much additional personal RA contribution you can still deduct under Section 11F.
Is Section 11F room the same as TFSA contribution room?: No. TFSA room is a contribution cap (R46,000 annual / R500,000 lifetime for 2026/27 across all TFSAs). Section 11F is an income-tax deduction limit for qualifying retirement-fund contributions. You can have TFSA room left and no Section 11F headroom left — or the reverse. See the TFSA limits guide and the TFSA vs RA comparison.
What happens if I contribute more than my Section 11F headroom?: Amounts above the deductible limit for the year are generally not deductible in that year. Depending on the rules that apply to you, some excess may be carried forward or treated as non-deductible. Do not assume every rand into an RA reduces this year’s tax. Confirm with SARS material or a registered practitioner when your situation is complex.
Can Libevyn show my live Section 11F room in the app?: The free TFSA vs RA calculator already estimates Section 11F headroom, ceiling, remaining room, and the binding limiter from numbers you enter. A dedicated in-app Section 11F deduction-headroom card for subscribers is listed on pricing as shipping as released — it is not claimed as a live shipped card here. Manual entry, no bank passwords, 14-day trial.

Try it in Libevyn

Enter remuneration and retirement contributions in the free calculator to see Section 11F headroom, remaining room, and the binding limiter — then start a 14-day trial to keep your totals updated. No bank passwords.

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Planning information only — not financial or tax advice. Figures are estimates from the numbers you enter; not SARS-verified. Confirm with SARS or a registered practitioner before acting.