What is provisional tax in South Africa?

Provisional tax is not a separate tax — it is a way of paying your normal income tax in advance during the year, rather than in one large amount at year end. If you earn income other than a salary (from a business, freelance work, rental, or investments above R30,000 per year), you must register as a provisional taxpayer and make two payments per year to SARS.

Who must register for provisional tax?

You must register for provisional tax if you earn any income that is not taxed through PAYE by an employer — this includes business income, freelance income, rental income, and investment income above R30,000 per year. If you have a salary AND a side business, you are a provisional taxpayer for your side income.

When are provisional tax payments due in 2026?

For the 2026/27 tax year (1 March 2026 to 28 February 2027): the first payment is due 31 August 2026 and the second payment is due 26 February 2027. A voluntary third top-up payment can be made by 30 September 2027.

What happens if I don't register for provisional tax?

If you earn side income above R30,000 and don't register, SARS will eventually catch up — often during your annual tax assessment. You will owe all the tax at once, plus a 10% late payment penalty and interest at 10.75% per annum on the outstanding amount. It is much better to register early and pay in manageable installments.

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Tax Guide

Provisional Tax South Africa — What It Is and How to Pay It

If you earn money from a side business, freelance work, rental property, or investments — in addition to your regular salary — SARS requires you to pay tax on that extra income in advance, twice a year. This is called provisional tax. Most people have never heard of it until SARS sends them a penalty.

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Critical: If you earn side income above R30,000 per year (about R2,500/month) that is not taxed through PAYE, you are legally required to register as a provisional taxpayer. The penalty for not doing so is 10% of the unpaid tax, plus interest.

What is provisional tax?

Provisional tax is not a separate tax. It is simply a way of paying your normal income tax during the year rather than in one big amount at the end. Think of it like your employer deducting PAYE from your salary every month — except you do it yourself, twice a year, for your non-salary income.

At the end of the tax year, SARS calculates your actual total tax (employment income + side income combined). Your provisional payments count as credits against that total. If you paid too much, you get a refund. If you paid too little, you pay the difference.

First payment

31 Aug 2026

Second payment

26 Feb 2027

Penalty for late

10% of tax

Interest rate

10.75% p.a.

Who must register?

You must register as a provisional taxpayer if you earn income that is not taxed through PAYE. This includes:

check_circleIncome from a side business or freelance work

check_circleRental income from a property you let out

check_circleInvestment income (dividends, interest) above R30,000 per year

check_circleDirector's fees from a company

check_circleCommission income not taxed through PAYE

check_circleAny income from a sole proprietorship or partnership

You do not need to register if your only non-salary income is interest or dividends below R30,000 per year, or income from a tax-free savings account.

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If you earn R15,000/month from a side business, that is R180,000/year — well above the R30,000 threshold. You must register as a provisional taxpayer.

How does provisional tax work if you also have a salary?

SARS does not tax your salary and side income separately. They are combined. Here is how it works:

Your employer deducts PAYE from your salary every month

This covers the tax on your employment income. Your employer pays this to SARS on your behalf.

You estimate your total annual taxable income

Add your expected salary + expected side business profit (after expenses). This is your estimated taxable income.

Calculate your total tax on that combined income

Use the SARS tax tables. Your side income pushes you into higher brackets, so the marginal tax on the extra income could be 26–45%.

Subtract the PAYE your employer already paid

The difference is what you owe SARS through provisional tax. Divide by 2 — that is your first payment.

Pay twice a year

31 August (first period) and 26 February (second period). Submit an IRP6 return on SARS eFiling each time.

Worked example

You earn R40,000/month salary (R480,000/year) and R15,000/month from your leather business (R180,000/year profit after expenses).

Annual salaryR480,000

Annual business profitR180,000

Total taxable incomeR660,000

Tax on R660,000 (2026/27 brackets)~R200,660

Less primary rebate−R17,820

Less PAYE already paid by employer (estimate)−R120,000

Amount owed via provisional tax~R62,840

First payment (31 Aug 2026)~R31,420

Second payment (26 Feb 2027)~R31,420

Use our PAYE Calculator to estimate your combined tax. Remember to include business expenses to reduce your taxable profit.

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This is an estimate. Your actual figure depends on your exact income, all deductions, and your PAYE credits. Consider using a registered tax practitioner for your first year — they can save you more than their fee.

How to register for provisional tax

Log in to SARS eFiling

Go to efiling.sars.gov.za and log in to your existing eFiling profile.

Go to User → Tax Types

Click Home on the top menu, then User on the left menu, then Tax Types.

Tick Provisional Tax (IRP6)

Select the checkbox next to Provisional Tax. Add your income tax reference number next to it.

Click Register

Done. You are now registered as a provisional taxpayer. You can now submit IRP6 returns.

Submit your IRP6 return before each deadline

Go to Returns → Provisional Tax (IRP6) → Select period → Request Return. Fill in your estimated taxable income and submit with payment.

What if I can't pay the full amount?

Pay what you can — a partial payment is better than nothing. SARS will charge the 10% penalty on the unpaid portion, not the full amount. You can also arrange a payment plan with SARS by calling 0800 00 7277 or through eFiling. Never ignore provisional tax — SARS has significant powers to collect and the penalties compound quickly.

Frequently asked questions

Provisional tax is not a separate tax — it is a way of paying your normal income tax in advance during the year, rather than in one large amount at year end. If you earn income other than a salary, you must register and make two payments per year.

Yes, if your side income exceeds R30,000 per year (R2,500/month). Register on SARS eFiling under Tax Types and tick the Provisional Tax (IRP6) box. Your first payment for the 2026/27 tax year is due 31 August 2026.

Estimate your total taxable income for the year — salary plus side business profit after expenses. Calculate the tax using SARS brackets, subtract your primary rebate and PAYE already paid. Divide the remaining amount by two. You do not have to be perfectly accurate — there is some tolerance — but a significant underestimate attracts a penalty.

Use a conservative estimate of your annual income. If you end up earning more than estimated, you will pay the shortfall when you file your annual return. If you earn less, SARS will refund you after assessment. You can also make a voluntary third top-up payment by 30 September if your actual income turns out higher.

The IRP6 is the provisional tax return form you complete on SARS eFiling for each payment period. It captures your estimated taxable income and calculates the tax due. You submit it online — there is no paper form to print or post.

Key contacts

SARS helpline: 0800 00 7277
SARS eFiling: efiling.sars.gov.za
SARS provisional tax guide: sars.gov.za/types-of-tax/provisional-tax/

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This guide provides general information only. Tax rules, bank fees, and regulations change — always verify with SARS, your bank, or a registered tax practitioner. Mzansi Money Guide is independent.