Provisional tax is one of the South African tax rules that becomes important as soon as income stops being simple monthly employment income. It affects many freelancers, consultants, company owners, landlords, investors with taxable passive income, and anyone paid by an employer that is not registered for employees' tax. It also affects companies automatically.
As verified against SARS on , provisional tax is not a second tax. SARS describes it as a way of paying normal income tax in advance so the final assessment does not create one large debt. The payment is made through IRP6 returns during the year of assessment, then the amounts are set off against the final normal tax liability.
This guide is written for the South African 2026/27 year of assessment, which runs from March 1, 2026 to February 28, 2027 for individuals and trusts that follow the normal tax year. It covers who needs to file, when the IRP6 periods fall, how the first and second period calculations work, what the 2026/27 tax bands are, and how to use AfroTools to check the PAYE part before estimating the rest.
If you only have salary income from a registered employer, start with the South Africa PAYE Calculator and the SARS tax brackets guide. If you also have business, rental, investment, or company income, keep reading because the IRP6 workflow can apply even when PAYE is already being deducted from part of your income.
Who must file provisional tax
SARS says a provisional taxpayer includes a person who receives income other than remuneration, a company, or a person told by the Commissioner that they are a provisional taxpayer. The SARS 2026 budget tax guide uses the same practical test: income that is not normal remuneration, or remuneration from an unregistered employer, can bring the taxpayer into the provisional system.
That sounds broad, but SARS also lists exclusions. A natural person who does not carry on business does not need to pay provisional tax if taxable income stays below the tax threshold for the year. A person can also stay outside provisional tax where the relevant passive income category is R30,000 or less for the tax year. SARS lists interest, dividends, foreign dividends, rental from letting fixed property, and remuneration from an unregistered employer in that R30,000 test.
| Profile | Likely provisional tax position | Reason to check |
|---|---|---|
| Salary-only employee with PAYE withheld by a registered employer | Often not provisional | SARS says most salary earners are not provisional taxpayers if there are no other income sources |
| Freelancer, consultant, trader, or sole proprietor | Often provisional | Business income is not normal PAYE remuneration |
| Landlord with taxable rental income | Check the income level | Rental income is specifically relevant to the provisional tax exclusion test |
| Company | Provisional by default | SARS says companies automatically fall into the provisional tax system |
| Employee paid by an unregistered employer | Often provisional | SARS includes remuneration from an employer not registered for employees' tax |
The important operational rule is that there is no separate registration or deregistration process for provisional tax. SARS says the onus is on the taxpayer to determine whether they are liable and to request and submit the IRP6 return through eFiling. In practical terms, this means a freelancer cannot wait for a special invitation before checking the rule.
2026/27 IRP6 dates
SARS sets the first and second provisional tax periods by reference to the year of assessment. For a normal March-to-February year, the first payment is due six months after the start of the year. The second payment is due by the last business day of the year of assessment. The third payment is optional and is used as a top-up after year-end, before assessment, to reduce interest risk where the first two estimates were not enough.
For the 2026/27 individual tax year, the calendar works like this:
| IRP6 period | What it covers | Due date for a February year-end | How the date was verified |
|---|---|---|---|
| First period | First six months of the 2026/27 year | August 31, 2026 | SARS says the first payment is due within six months of the start of a March year |
| Second period | Full 2026/27 year estimate less first period payment and credits | February 26, 2027 | SARS says the second payment is due by the last business day of February. February 28, 2027 is a Sunday, so the last business day is February 26 |
| Voluntary top-up | Additional payment after year-end where needed | September 30, 2027 | SARS says the top-up date is the last business day of September for February year-ends and individuals |
These are calendar-based dates for the standard February year-end. Companies with non-February year-ends need to apply the SARS timing rule to their own year-end. Do not copy the individual dates into a company calendar unless the company actually has a February year-end.
How the calculation works
The first IRP6 period is not supposed to be a guess at six months of profit only. SARS starts from estimated taxable income for the full year, then calculates the tax position for the relevant period. For the first period, SARS describes the amount payable as half of the estimated tax for the full year, less employees' tax for that six-month period, foreign tax credits for that period, rebates, and medical credits where applicable.
The second period works from the full-year estimate. SARS says the calculation starts with the total estimated tax for the full year and subtracts employees' tax paid for the full year, allowable foreign tax credits for the full year, applicable rebates and medical credits, and the amount paid for the first provisional period. The voluntary third payment uses a similar full-year logic, less the first and second period payments.
| Calculation stage | First period | Second period |
|---|---|---|
| Starting point | Estimated tax for the full year | Estimated tax for the full year |
| Period factor | Half of the full-year amount | Full-year amount |
| Deduct PAYE already withheld | Employees' tax for six months | Employees' tax for twelve months |
| Deduct credits and rebates | Relevant rebates, medical credits, and foreign tax credits | Relevant full-year rebates, medical credits, and foreign tax credits |
| Deduct earlier provisional payment | Not applicable | First provisional tax payment already made |
The key habit is to estimate taxable income for the whole year, not only the money already received. This is why provisional tax feels uncomfortable for variable-income workers. You are not filing the final return. You are making a good-faith estimate early enough that SARS receives normal tax in advance.
2026/27 tax bands and thresholds
The SARS 2026 budget tax guide gives the individual and special trust tax bands for income from March 1, 2026 to February 28, 2027. Use these bands for the normal tax estimate before applying rebates, PAYE already withheld, credits, and provisional payments.
| Taxable income for 2026/27 | Rate of tax |
|---|---|
| R1 to R245,100 | 18% of taxable income |
| R245,101 to R383,100 | R44,118 plus 26% of taxable income above R245,100 |
| R383,101 to R530,200 | R79,998 plus 31% of taxable income above R383,100 |
| R530,201 to R695,800 | R125,599 plus 36% of taxable income above R530,200 |
| R695,801 to R887,000 | R185,215 plus 39% of taxable income above R695,800 |
| R887,001 to R1,878,600 | R259,783 plus 41% of taxable income above R887,000 |
| R1,878,601 and above | R666,339 plus 45% of taxable income above R1,878,600 |
The same SARS guide lists the primary rebate at R17,820, the secondary rebate for people aged 65 and older at R9,765, and the tertiary rebate for people aged 75 and older at R3,249. The tax thresholds are R99,000 for people below 65, R153,250 for people aged 65 to below 75, and R171,300 for people aged 75 and above.
For salary components, run the South Africa PAYE Calculator first. It helps isolate the employees' tax already withheld, so the provisional tax estimate focuses on the non-salary part instead of double-counting PAYE.
Formula walkthroughs based on published thresholds
The examples below are formula walkthroughs only. They use SARS-published 2026/27 bands and do not assume real taxpayer facts. Actual IRP6 numbers depend on deductions, medical credits, foreign tax credits, retirement contributions, age, PAYE already withheld, and final taxable income.
Walkthrough 1: full-year taxable income estimate of R360,000
R360,000 falls in the second band. The normal tax before rebates is R44,118 plus 26% of the amount above R245,100. The excess is R114,900, and 26% of that is R29,874. The pre-rebate tax is therefore R73,992. If the taxpayer is under 65 and only the primary rebate applies, subtract R17,820. The estimated annual normal tax becomes R56,172 before PAYE, credits, and provisional payments.
For the first period, SARS's structure starts with half of the full-year estimated tax. Half of R56,172 is R28,086. From that, subtract PAYE withheld for the first six months and any relevant period credits. For the second period, start with the full R56,172, then subtract full-year PAYE, relevant credits, and the first provisional payment already made.
Walkthrough 2: full-year taxable income estimate of R720,000
R720,000 falls in the fifth band. The normal tax before rebates is R185,215 plus 39% of the amount above R695,800. The excess is R24,200, and 39% of that is R9,438. The pre-rebate tax is R194,653. If the taxpayer is under 65, subtract the primary rebate of R17,820. The estimated annual normal tax becomes R176,833 before PAYE, credits, and provisional payments.
The first-period starting point is half of that annual estimate, or R88,416.50, before subtracting employees' tax for six months and applicable credits. The second-period starting point is the full R176,833, before subtracting full-year PAYE, credits, and the first provisional payment.
These examples show why the taxable income estimate matters so much. A small change around a bracket boundary can move the marginal rate, while PAYE already withheld can materially reduce the IRP6 amount payable.
How to file on SARS eFiling
SARS's eFiling guide says taxpayers request the provisional tax return from the Returns menu, then Returns Issued, then Provisional Tax (IRP6). The current eFiling workflow lists recent periods and includes the first period that falls within the 2027 tax year.
Once the return is requested, SARS displays a Provisional Tax Work Page. The IRP6 form pre-populates taxpayer particulars, then asks for fields such as gross income, estimated taxable income, medical scheme fees tax credit, additional medical expenses tax credit, employees' tax for the relevant period, foreign tax credits, and late-payment penalty or interest where applicable.
For the second period, SARS asks for the full twelve-month employees' tax figure. The system can calculate or pre-populate tax on estimated taxable income, rebates, tax for the full year, first-period provisional tax paid, tax payable for the period, and any penalty or interest balances.
After completion, the taxpayer files the return on eFiling. SARS says eFiling validates the information and prompts for correction where errors or omissions are found. If an outstanding balance remains, payment can be initiated through the Payments area on eFiling.
Penalties, interest, and practical controls
The main risk is not only missing the date. SARS warns that insufficient payment or underestimation of taxable income may lead to penalties and interest. That means an IRP6 return can be filed on time but still create a problem if the estimate is not supportable.
A practical control file should include:
- year-to-date income by source, including salary, freelance, rental, investment, and company distributions where relevant;
- expected remaining income for the year with signed contracts, invoices, rent schedules, or management accounts where available;
- PAYE certificates or payroll reports showing employees' tax already withheld;
- retirement, medical, foreign tax credit, and deduction support where relevant;
- a saved copy of the calculation used for the first and second IRP6 periods;
- proof of submission and proof of payment from eFiling.
For variable-income taxpayers, do a second estimate before the second IRP6 period instead of simply repeating the first-period number. The February return should reflect what you know near year-end, not what you hoped would happen in August.
Use the South Africa income tax guide for the broader tax context, the TFSA guide for exempt tax-free savings account treatment, and the freelancer tax guide if you want a cross-country comparison of how variable income is handled.
Primary sources reviewed: SARS Provisional Tax page, SARS How to eFile Your Provisional Tax Return guide, and the SARS Budget Tax Guide 2026/27. The due dates for February 26, 2027 and September 30, 2027 are calendar applications of the SARS last-business-day rule for the 2026/27 year.
Separate PAYE From Your IRP6 Estimate
Use the South Africa PAYE Calculator to estimate employees' tax already withheld before you add business, rental, or other non-salary income to your provisional tax worksheet.
Open South Africa PAYE CalculatorFrequently asked questions
Is provisional tax a separate tax?
No. SARS treats it as advance payment toward normal income tax. The provisional payments are credited against the final assessment.
Do companies file provisional tax?
Yes. SARS says companies automatically fall into the provisional tax system. A company should apply the timing rules to its own year-end.
Does rental income always make me a provisional taxpayer?
Not always. SARS has an exclusion for natural persons who do not carry on business and whose taxable income stays below the threshold, or whose listed passive and unregistered-employer income is R30,000 or less for the tax year. Rental income is part of that test, so the amount matters.
What if February 28 falls on a weekend?
SARS says the second payment is due by the last business day of February. For the 2026/27 year, February 28, 2027 is a Sunday, so the practical due date is Friday, February 26, 2027.
Should I use last year's taxable income as the estimate?
Only as a starting reference. The IRP6 estimate should reflect the current year of assessment. SARS can increase an estimate if it is not satisfied with the taxable income estimate made by the taxpayer.