Provisional Tax Calculator

Provisional tax isn’t a separate tax — it’s a mechanism for paying your income tax in advance, in two instalments during the year, if some of your income isn’t being taxed through PAYE by an employer. Freelancers, sole proprietors, rental-income earners, commission agents, and company directors with non-PAYE income are typical provisional taxpayers.

The submission is made on an IRP6 form via eFiling, twice a year. It includes an estimate of your annual taxable income and the tax you expect to owe — subtract PAYE already withheld and provisional payments already made, and you get the amount due this period.

You’re automatically a provisional taxpayer if any of the following apply:

• You earn income that isn’t taxed by an employer (freelance, rental, self-employed).
• Your taxable non-remuneration income (interest, rental, etc.) exceeds R30,000 in a year.
• You’re a company or trust (always provisional, no exceptions).
• You’re a director of a private company (historical rule, often still flagged by SARS even where no non-PAYE income exists).

There are exceptions for interest income: if your only additional income is interest below the interest exemption (R23,800 under 65 / R34,500 age 65+), you don’t need to register.

For the 2026/2027 tax year (1 March 2026 – 28 February 2027), there are two mandatory submissions plus an optional third:

• Period 1 — covers 1 March – 31 August. Submission and payment due by 31 August 2026 (the last day of the first half of the tax year).
• Period 2 — covers the full tax year. Submission and payment due by 28 February 2027 (the last day of the year of assessment).
• Period 3 (optional top-up) — a voluntary payment by 30 September 2027 (seven months after year-end) to close any shortfall and avoid interest on underpayment.

Period 1 uses the “basic amount” concept — your estimate of taxable income must be at least your most recent assessed income, reduced by 8% if you don’t have a more recent estimate to go on. Period 2 requires a much more accurate estimate because the penalty regime is stricter.

SARS applies underestimation penalties if your Period 2 estimate is below your actual taxable income:

• Taxable income under R1,000,000. Your estimate must be at least the “basic amount” (last assessed income, uplifted 8% per year since last assessment). Estimate below that → 20% underestimation penalty.
• Taxable income R1,000,000 or more. Your estimate must be at least 80% of actual taxable income. Estimate below that → 20% underestimation penalty.
• Under-payment interest. On top of the penalty, SARS charges interest (currently the prescribed rate) on any shortfall from the Period 2 due date until payment.

Everything that reduces annual income tax also reduces provisional tax — in particular:

• Retirement contributions. 27.5% of taxable income, capped at R430,000/year (2026/2027), is deductible. For freelancers, an RA is the primary lever.
• Legitimate business expenses. Home office (if you meet the exclusive-use test), professional subscriptions, software, accounting fees, business travel.
• Medical scheme credits (Section 6A) and qualifying out-of-pocket costs (Section 6B).
• Donations to Section 18A PBOs — up to 10% of taxable income.

• Forgetting PAYE credits. If you’re salaried with a side hustle, deduct PAYE already withheld from your calculated liability — don’t pay tax twice.
• Under-estimating Period 2 to avoid cash-flow strain. If actual income exceeds your estimate by more than the thresholds, 20% penalty applies.
• Missing the 30 September top-up window when your income was higher than expected. Paying the top-up by 30 September avoids most interest on the shortfall.
• Filing Period 1 late. Late submission triggers a separate penalty even if the estimate is accurate.

Enter your estimated annual taxable income (gross income less business expenses and deductions), your age, any PAYE already withheld by an employer, and any prior provisional payment. The calculator applies the 2026/2027 brackets and rebates, splits the liability into Period 1 and Period 2, and highlights the dates each is due.

For Period 2 estimates, set your income as accurately as you can. If unsure, err high — over-estimating leads to a refund; under-estimating by more than the permitted margin triggers a 20% penalty on top of interest.

• SARS — Guide to provisional tax
• SARS — Provisional tax due dates
• SARS — Paragraph 20 (underestimation penalty)