Provisional Tax in South Africa: A Complete Guide with Calculator
If you earn income in South Africa that doesn’t have tax automatically deducted (like a salary does via PAYE), you may need to pay provisional tax.
The Provisional Tax Calculator helps you estimate how much tax you need to pay to SARS in advance, so you don’t get caught with a large bill at year-end.
What is Provisional Tax?
Provisional tax is not a separate tax. It’s a method of paying your normal income tax liability in advance, spread over two (or sometimes three) payments during the tax year.
It applies mainly to:
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Freelancers and sole proprietors
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Commission earners
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Rental property owners
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Investors earning interest, dividends, or foreign income
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Companies and trusts
Employees with only one salary (where tax is deducted via PAYE) usually don’t need to pay provisional tax.
How Provisional Tax Works
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First Payment (August): Half of your estimated tax liability.
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Second Payment (February): The other half of your estimated liability.
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Third (Optional) Payment (September): To correct any shortfall and avoid penalties.
👉 This ensures SARS collects tax regularly instead of waiting until the final tax season.
How to Calculate Provisional Tax (Practical Example)
Example:
Sipho is a freelancer who expects to earn R600,000 taxable income for the 2025/2026 tax year.
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Calculate tax liability using normal SARS tax tables (say R120,000).
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Provisional tax = R120,000 total.
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August payment = R60,000
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February payment = R60,000
👉 If Sipho underestimates and his actual liability is R130,000, he may need to make a third payment of R10,000 to avoid penalties.
Provisional Tax Calculator
Easily estimate your provisional tax liability using our calculator:
South African Provisional Tax Calculator (2026)
Enter details to calculate provisional tax
Enter details to calculate provisional tax
Why the Provisional Tax Calculator is Useful
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Prevents unexpected large tax bills.
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Helps freelancers and businesses plan cash flow.
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Ensures compliance and avoids SARS penalties.
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Provides peace of mind during tax season.
Who Must Register for Provisional Tax?
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Any person who earns income other than a salary (e.g. freelance, rental, business income).
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Companies and trusts – automatically registered for provisional tax.
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Employees with a second income (e.g. side hustle or investments).
How to Submit Provisional Tax to SARS
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Log in to SARS eFiling.
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Submit an IRP6 return (due twice a year).
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Estimate taxable income for the period.
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Pay the amount directly via eFiling or at a SARS-approved bank.
10 Frequently Asked Questions (FAQs)
1. Who must pay provisional tax?
Anyone earning income not fully taxed at source (e.g. freelancers, businesses, landlords, investors).
2. How many provisional tax payments are there?
Two compulsory (August & February), and a third optional (September).
3. Is provisional tax an additional tax?
No, it’s simply an advance payment of your normal income tax.
4. Do salaried employees pay provisional tax?
Usually no, unless they have other sources of untaxed income.
5. What happens if I don’t pay provisional tax?
SARS may charge penalties and interest for late or underestimated payments.
6. How do I calculate provisional tax?
Estimate annual taxable income, apply SARS tax tables, and split into two payments.
7. Can I claim deductions in provisional tax?
Yes, you can deduct business expenses, medical aid credits, retirement annuities, etc.
8. Can provisional tax be refunded?
Yes. If you overpay, SARS will refund you after final assessment.
9. What form is used for provisional tax?
The IRP6 return.
10. Is provisional tax compulsory for companies?
Yes, all companies are automatically registered and must submit.
Final Thoughts
Provisional tax ensures you pay SARS gradually throughout the year, instead of facing one big bill at the end. If you earn income outside of a salary, this applies to you.
👉 Use our Provisional Tax Calculator above to quickly estimate how much you’ll need to pay and avoid surprises.