Estimate your annual tax liability
The moment you earn a rand outside of a regular salary, SARS wants to know about it in advance — not just at year end. That's provisional tax in a sentence. It's a system that requires freelancers, side hustlers, landlords, and business owners to estimate their annual tax liability and pay it in two instalments throughout the year. Miss it or get it badly wrong and you're looking at a 20% penalty on top of whatever you owe.
This guide explains exactly how provisional tax works in South Africa, when you need to pay, how to estimate correctly, and what the penalties look like if you don't.
Who Is a Provisional Taxpayer?
You're a provisional taxpayer if you earn any income that isn't subject to PAYE — i.e. income your employer doesn't deduct tax from monthly. This includes: freelance or consulting income, rental income from a property, investment income above R30,000/year, business income as a sole proprietor, or if you're a director of a company.
The threshold to watch is R30,000 per year from non-employment sources. Below that, SARS gives you a pass. Above it, you're required to register and file provisional returns. Many side hustlers hit this threshold earlier than they expect — especially with rental properties or growing freelance income.
⚠️ If you earned freelance or rental income this year and haven't registered as a provisional taxpayer, you're already non-compliant. SARS can assess back-taxes, penalties, and interest on unpaid provisional tax. Register now at efiling.sars.gov.za — voluntary disclosure before being caught is always cheaper.
The Two Provisional Tax Deadlines
Provisional tax runs on your tax year, which in South Africa runs 1 March to 28/29 February. There are two mandatory payment dates:
| Payment | Due Date (2026/27 tax year) | Basis |
|---|---|---|
| 1st Provisional (IRP6) | 31 August 2026 | Estimate of first 6 months' income |
| 2nd Provisional (IRP6) | 28 February 2027 | Estimate of full year's taxable income |
| 3rd Provisional (voluntary) | 30 September 2027 | Top up if 2nd payment was too low |
The 1st payment is based on half your estimated annual taxable income. The 2nd covers the full year minus what you've already paid. Both are filed on the IRP6 form through SARS eFiling — not the ITR12, which is your annual income tax return filed separately.
How to Calculate Your Provisional Tax
SARS doesn't tell you exactly what to pay — you estimate it yourself. Here's the process: estimate your total taxable income for the full year, apply the SARS tax tables to get the tax on that income, subtract the primary rebate (R17,235 for 2025/26), then subtract any PAYE already deducted from a salary. The result is your estimated annual tax liability. Divide by 2 for your first payment.
Example: You're a freelancer earning R180,000/year. Tax on R180,000 = R26,100 minus R17,235 rebate = R8,865 annual tax liability. First provisional payment: R4,432. Second payment (at year end): R4,433 minus any first payment already made.
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