What is provisional tax in South Africa?

Provisional tax is not a separate tax — it is a method of paying your normal income tax in advance, in two compulsory instalments (31 August and 28/29 February) plus an optional top-up by 30 September after year-end. It applies to anyone earning income that is not fully covered by PAYE.

Who must register as a provisional taxpayer?

Freelancers, sole proprietors, landlords, traders earning investment or business income, directors of private companies paid outside PAYE, and salary earners with substantial side income above the interest/dividend exemption thresholds. Pensioners over 65 with low passive income are generally exempt.

Is this calculator SARS accurate?

It applies the published SARS tax brackets, primary rebate, and provisional split for the tax year you choose. It is an estimate — your actual liability depends on your full ITR12 once filed, including any deductions, credits, or capital gains the calculator does not capture.

How is the first vs second provisional payment split?

The first IRP6 by 31 August is roughly 50% of your estimated annual tax less any PAYE withheld. The second IRP6 by 28/29 February is the balance to bring you up to your full estimated annual liability. The optional third payment by 30 September clears any shortfall before SARS interest under section 89quat starts to accrue.

What is the 80% / 90% under-estimation rule?

If your final taxable income is more than R1,000,000, your estimate must be at least 80% of the actual amount. At or below R1,000,000 it must be at least 90% of the actual figure or equal to your basic amount (last assessed taxable income, escalated by 8% per year if older than 18 months). Falling short triggers a 20% penalty on the difference.

What happens if I miss a deadline?

Late payment attracts a 10% penalty plus interest at the prescribed rate. If you cannot pay the full amount on time, file the IRP6 anyway with your best estimate and pay what you can — the penalty applies to non-payment, not to filing a low estimate within reason.

Can I deduct expenses against this income?

Yes — for trade, freelance and rental income you may deduct expenses incurred in the production of income (home office, equipment depreciation, professional fees, vehicle costs apportioned to business use). Enter the total expected deductible amount under 'deductible expenses'.

Where can I verify and pay my provisional tax?

Submit IRP6 returns and pay through SARS eFiling. Authoritative source: sars.gov.za → Types of Tax → Provisional Tax. For complex situations or if you trigger the 80/90% rule, consult a registered SAIT, SAICA or SAIPA tax practitioner before submitting.

South Africa Provisional Tax Calculator

Estimate your provisional tax payable for the year. Built for freelancers, sole proprietors, landlords, investors, and anyone whose income isn't fully covered by monthly PAYE.

Last updated: March 2025

Your details

Estimated annual taxable income (ZAR)

Tax year

Provisional tax already paid

Deductible expenses

Tax credits or rebates (extra)

The primary rebate is applied automatically. Use this for medical scheme fees credits or other adjustments.

Your estimate

Taxable income: R 450 000,00
Normal income tax: R 102 007,00
Less: rebates & credits: − R 17 235,00
Net tax for the year: R 84 772,00
First provisional payment (Aug): R 42 386,00
Second provisional payment (Feb): R 42 386,00
Estimated provisional tax due: R 84 772,00

First and second provisional tax payments may differ depending on your inputs. SARS rules and thresholds change — results are approximate.

Never miss an IRP6 deadline again

Free 2025/2026 SA Tax Deadline Calendar PDF — plus an email reminder a week before each IRP6 due date.

Have a question about your provisional tax?

Ask Taxza free — no signup needed. 5 free questions, plain-English answers with SARS references.

How it works

1Estimate your taxable income for the year.
2Apply the South African individual tax brackets.
3Subtract relevant rebates and credits.
4Subtract provisional tax already paid.
5The result is your estimated provisional tax amount.

Worked example

A freelance designer estimates R600,000 taxable income for 2025/2026 and has paid R30,000 already. Normal tax ≈ R 152 867,00. After the primary rebate of R 17 235,00, net tax ≈ R 135 632,00. Subtracting R30,000 already paid leaves an estimated R 105 632,00 due.

Understanding provisional tax in South Africa

Provisional tax is how SARS collects income tax from people who do not have an employer running PAYE on their behalf — freelancers, sole proprietors, consultants, landlords, and salaried employees with substantial side income. The total tax owed for the year is unchanged; provisional tax simply controls when you pay it, smoothing what would otherwise be a single overwhelming bill at assessment.

This calculator estimates your provisional tax using the SARS individual brackets and rebate for the tax year you pick. It computes normal tax on your projected taxable income, deducts the primary rebate plus any extra rebates or credits you enter, subtracts what you have already paid, and splits the remainder between the first and second IRP6 instalments.

Treat the result as a planning figure within a few percent of your final assessment. SARS's actual demand depends on your full ITR12 — capital gains, fringe benefits, audited deductions and any directives in force. If your taxable income may exceed R1 million the 80% rule becomes critical, so be conservative when estimating.

How provisional tax is calculated

The formula SARS applies and the rules behind it.

Net annual tax

net_tax = brackets(taxable) − rebate − credits

Apply progressive income tax brackets to your estimated taxable income, then subtract the primary rebate (R17,235 for 2025/2026) plus the medical scheme fees credit and any other allowable credits.

The two payment dates

1st = ~50% × net_tax, 2nd = balance

First IRP6 due 31 August (50% of estimated annual tax less PAYE withheld). Second IRP6 due 28/29 February for the remainder. Optional top-up by 30 September after year-end.

The 80% / 90% rule

estimate ≥ 80% (>R1m) or 90% (≤R1m) of actual

Under-estimating triggers a 20% penalty on the shortfall. If you have no good estimate, SARS accepts the basic amount (last assessment + 8% per year if older than 18 months) as a safe floor.

Section 89quat interest

interest accrues from 30 Sept on shortfall

Even without a penalty, SARS charges interest on any underpayment from 30 September after year-end until you settle. The optional third payment exists specifically to stop this clock.

Worked examples

Three realistic provisional taxpayer profiles for the 2025/2026 year.

Low income

Part-time freelancer — R250,000 taxable

Estimated taxable income: R250,000
Normal tax on R250k: R45,000
Less primary rebate: − R17,235
Net annual tax: R27,765
First IRP6 (Aug): R13,883
Second IRP6 (Feb): R13,882

At R250k taxable income the 90% rule applies — your estimate must be at least R225k or the basic amount. Effective tax rate ≈ 11%.

Middle income

Independent consultant — R750,000 taxable

Gross billings: R900,000
Less deductible expenses: − R150,000
Taxable income: R750,000
Normal tax (after rebate): R178,490
First IRP6 (Aug): R89,245
Second IRP6 (Feb): R89,245

Hold roughly 28% of every invoice in a separate tax account from day one. Home-office, professional fees and vehicle apportionment are the biggest legitimate deductions.

High income

Specialist consultant — R2,000,000 taxable

Estimated taxable income: R2,000,000
Normal tax (after rebate): R635,665
Effective tax rate: 31.8%
Subject to 80% rule: Yes (>R1m)
First IRP6 (Aug): R317,833
Second IRP6 (Feb): R317,832

Above R1m the 80% rule bites. If actual income climbs to R2.3m and you only estimated R2m, the 20% penalty alone costs ~R23,000 — almost always worth using the optional third payment instead.

Provisional tax tips and common mistakes

What experienced provisional taxpayers wish they had known earlier.

Open a separate tax bank account

Move 25–35% of every invoice into a dedicated account the day it arrives. The discipline alone prevents the August and February cash-flow panics that catch most first-time provisionals.

Don't forget capital gains

Sold property, shares or crypto during the year? The taxable inclusion adds to your estimated taxable income. Forgetting it is the most common cause of February shortfalls.

Use the basic amount as a floor

If estimating is hard, SARS will accept your last assessed taxable income (escalated 8% per year if older than 18 months). It will not avoid interest, but it does avoid the 20% penalty.

File even if you cannot pay

The penalty applies to non-submission. File the IRP6 with your best estimate and pay what you can — partial payment is far better than no submission, and you can settle the rest with interest later.

Watch the medical scheme credit

Medical scheme contributions reduce your tax, but only via the medical scheme fees credit — not as a deduction from income. Enter the annual credit value (member + dependants) under 'tax credits'.

Keep records for five years

SARS can audit any IRP6 for up to five years. Keep invoices, bank statements, and supporting calculations — your audit trail is the difference between a smooth review and a costly dispute.

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Taxza provides estimates only and does not provide legal or tax advice. Please verify with SARS or a qualified tax practitioner.

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