The Guide To Provisional Tax In South Africa [+ downloadable provisional tax calculator]

If you earn money outside a traditional salaried job, tax can feel overwhelming. You don't have payslips. You don't have HR explaining things. And you're left wondering: "Do I owe SARS? When? How much?"

We know this all too well. We’ve been sole proprietors for 12 years combined, and have learnt a thing or two about paying provisional tax – oftentimes, by paying a hefty and very unhappy penalty. 

So we wanted to collect our knowledge and learnings to pass on to you – a freelancer, sole proprietor, or small business owner – so you can avoid those mistakes for yourself. Lyndall – the spreadsheet queen – even created a provisional tax calculator for you to be able to estimate, plan and save for your provisional tax payments.

The truth is, missing tax deadlines or underpaying can cost you. But here's the good news: it's totally manageable once you understand how it works. Even better, there are tools – like Franc Hustle – that can make it easier.

What is provisional tax in South Africa?

Provisional tax is the South African Revenue Service’s (SARS) way of making sure that people who don't earn a regular salary (and therefore aren't paying PAYE monthly) still pay their tax throughout the year. Instead of waiting until the end of the year to be hit with a big tax payment, you estimate your annual income and pay tax in two parts through the course of the tax year.

You're a provisional taxpayer if you earn income not already taxed before it’s paid out to you. That includes freelancers, side hustlers, consultants, Airbnb hosts, Uber drivers and anyone earning rental or investment income.

Do I have to pay provisional tax?

The short answer: if you earn more than R30,000 income a year from sources that don’t deduct PAYE, and more than R95,750 a year in total income, you likely need to register as a provisional taxpayer.

Examples:

• You're a freelancer billing clients directly.
• You drive Uber on weekends.
• You have a full-time job, but earn over R30,000 from freelance gigs.
• You rent out a room on Airbnb.

If any of these sound like you, it's time to check your status on SARS eFiling.

When and how is provisional tax paid?

Within one tax year timeline, you have to keep note of the following dates (in chronological order):

1. First provisional payment: 31 August
2. Second provisional payment: 28 February
3. Third top-up payment (optional): 30 September the next year – this is only if your earlier estimates were too low and you want to “top up” your payments. 
4. Finalising your tax return for the tax year: You then have from 21 July until 19 January (or thereabouts – the exact dates change every year) of the next year to finalise and submit your final tax return. 

We know this can be the most confusing bit – so we put together a timeline to show you how the payments are structured: 

You submit an IRP6 form for each payment via SARS eFiling.

How to calculate what you owe [+ downloadable provisional tax calculator]

The basic formula to calculate your tax is estimated taxable income × your effective tax rate. This can get tricky, so we put together a handy downloadable provisional tax calculator to help you get to the estimated answer. 

Here’s what you need to get ready to input into the calculator:

• An estimate of your total income for the year
• Tally all your allowable, tax-deductible business expenses (see a list below of allowable expenses you could deduct)

The provisional tax calculator will then use this information to get your estimated taxable income, your effective tax rate and your payable tax for the full year and period. 

Your marginal tax rate is the rate of tax you pay on the top portion of your income. It increases as your income increases.

Here are the rates of tax for the 2026 tax year (1 March 2025 - 28 February 2026):

Tip: Be realistic in your estimates. Underestimating how much you will earn can mean you pay penalties (more on that later).

Tax-deductible expenses for freelancers, sole proprietors and side hustlers

If you’re a freelancer or have a side hustle, you can claim certain expenses against your income to lower your taxable amount. Some common SARS-accepted deductions include:

• Office/studio rent (or a portion of your home if you work from home)
• Internet and cellphone bills
• Business-related transport and travel costs
• Advertising and marketing
• Software and subscriptions (like Canva, Adobe, Xero)
• Business equipment (laptops, printers, cameras, tools, desks)
• Bank charges and transaction fees
• Professional services (accountants, legal advice)
• Training courses or certifications related to your work
• Business insurance

In order to deduct these expenses, you need to keep a thorough log of these expenses, and store your receipts for bigger expenses (should you find yourself being audited by SARS).

How to prepare for provisional tax 

Keeping your finances organised is half the battle. Here's how to prepare for provisional tax return dates:

• Keep a clear record of your income and expenses. When you’re recording your expenses, use SARS-friendly tags to categorise (you’ll find these under the Expenditure section of your tax assessment documents).
• Save for your tax monthly. Save at least 25% of your income in a separate high-interest savings pot or money market fund you can easily access, so you don’t get hit with a big, unexpected cost at tax payment time. 
• Keep receipts for big business expenses. SARS might ask you for proof of these expenses at tax return time.
• Schedule tax return and payment dates in your calendar. Make sure to set a reminder at least a week before so that you have enough time to get your information in place. 

How to register and submit an IRP6 return

To register:

1. Log in to your SARS eFiling profile.
2. Go to ‘Home’ via the top menu. 
3. Select ‘User’ on the left menu, then select ‘Tax Types’
4. Update your 'Tax Types' by ticking the 'Provisional Tax (IRP6)' box.

To submit an IRP6 form:

1. Navigate to Returns > Returns Issued > Provisional Tax (IRP6)
2. Select the correct tax period from the ‘Select Period’ drop-down list and ‘Request Return’
3. Select ‘IRP6’ under ‘Return Type’ 
4. Fill in your estimated income and calculate tax
5. Submit by clicking on ‘File Return’ and make payment

Provisional tax penalties (and how to avoid them)

SARS can charge you a penalty if your returns or payments are late, or if you underestimate your income. Here are the penalties to avoid: 

You pay a penalty if your payment is late. 

A 10% penalty on the total tax amount will be applied if your payment is even a few days late. If the deadline falls on the weekend or a public holiday, be sure to submit on the weekday before then. There’s also a 10% per year interest charge on late payments. 

You pay a penalty if you underestimate your taxable income. 

The penalty applied depends on whether your taxable income amounts to more or less than R1 million.

• If you earn R1 million or less in the year, an under-estimation penalty applies if your second provisional return is less than 90% of your actual taxable income for the year (i.e. you’re 10% off in your estimation) and is less than your ‘basic’ amount (your taxable income on your most recent assessment). In this case, your penalty will be 20% of the difference between the tax you would pay on your estimated amount, and the tax on 90% of your actual taxable income, or your ‘basic’ amount (whichever is less).
• If you earn more than R1 million in the year, an under-estimation penalty applies if your second provisional return is less than 80% of your actual taxable income for the year (i.e. you’re 20% off in your estimation). Your penalty will be 20% of the difference between the tax you would pay on your estimated amount, and the tax on 80% of your actual taxable income.

You pay a penalty if you don’t submit your returns by the deadline. 

If you file your provisional tax return late, SARS sees this as you filing a return on R0 taxable income. That means a 20% under-estimation penalty will be applied. 

You don’t need to go it alone

Provisional tax doesn’t have to be painful. With the right info and the right tools, it’s totally doable on your own.

The Franc Hustle Account was built for self-employed South Africans who want to stay on top of their money and make tax time easier.

So take control of your hustle – and let Franc support you on the road to financial freedom.

Still have questions? Here are some Provisional Tax FAQs: