Complete Provisional Tax Guide
Complete Provisional Tax Guide South Africa 2026
Last Updated: June 2026 | Reading Time: 20 minutes
Understand provisional tax in South Africa. Who must register, how to calculate payments, deadlines for IRP6 forms, penalties for late submission, and step-by-step compliance guidance.
Table of Contents
- Quick Answer
- What Is Provisional Tax?
- Who Must Register for Provisional Tax?
- How to Register
- How to Calculate Provisional Tax
- How to Complete the IRP6
- 2026 Deadlines
- Penalties and Interest
- Third Provisional Payment (Optional)
- Calculation Examples
- Common Mistakes
- Frequently Asked Questions
- Related Articles
- Need Provisional Tax Help?
Quick Answer
Provisional tax is a method of paying income tax in advance through two annual payments (August and February). You must register if you earn non-salary income (freelance, rental, business). For 2026, payments are due 31 August 2025 (first) and 28 February 2026 (second). Submit your IRP6 via SARS eFiling. Under-estimation penalties apply if your payments are too low. The optional third payment is due 30 September 2026 to cover any shortfall and avoid interest.
What Is Provisional Tax?
Provisional tax is NOT a separate tax — it is a pre-payment system for income tax. Instead of paying all your tax at year-end, you make advance payments based on your estimated taxable income. When you file your annual ITR12 return, the provisional tax you’ve already paid is credited against your final tax liability.
Think of provisional tax as “pay as you go” for people who don’t have an employer deducting PAYE each month. It ensures SARS receives tax revenue throughout the year rather than in one lump sum.
Who Must Register for Provisional Tax?
You must register as a provisional taxpayer if:
- You earn income other than remuneration from an employer (e.g., freelance, consulting, commission)
- You receive rental income from property
- You earn interest, dividends, or other investment income above the exemption threshold
- You carry on any trade (business, farming, professional practice)
- You earn income from abroad
- You are a company, close corporation, or trust
Who Is Exempt?
You do NOT need to register if:
- Your only income is from a salary with PAYE deducted by your employer
- Your total taxable income does not exceed the tax threshold (R95,750 for under 65s)
- Your taxable income from non-salary sources is R30,000 or less per year
- You are a non-resident for tax purposes
How to Register
- Log in to SARS eFiling
- Go to “My Profile” > “Tax Type Management”
- Select “Register for Provisional Tax”
- Complete the registration form
- SARS will confirm your registration within a few days
Alternatively, visit a SARS branch with your ID to register in person.
How to Calculate Provisional Tax
Basic Calculation Steps
- Estimate your total taxable income for the full tax year (March 2025 to February 2026)
- Calculate tax on that income using the 2026 tax tables
- Subtract rebates (primary R17,235; secondary and tertiary if applicable)
- Subtract medical tax credits
- Add any capital gains tax liability
- This gives your total estimated tax for the year
First Provisional Payment (due 31 August 2025)
Pay at least 50% of your estimated total tax for the year. There is no penalty for under-estimation at this stage — SARS expects a rough estimate.
Second Provisional Payment (due 28 February 2026)
Pay the balance to bring your total provisional payments to 100% of your estimated tax for the year. This estimate should be more accurate as you are closer to year-end.
Important Rule: 80% Threshold
If your taxable income is R1 million or less, your second estimate must be at least 80% of your actual final tax liability. If your income exceeds R1 million, the estimate must be at least 90% accurate. Falling below these thresholds triggers under-estimation penalties.
How to Complete the IRP6
- Log in to SARS eFiling
- Go to “Returns” > “Provisional Tax”
- Select the relevant IRP6 (first or second period)
- Enter your estimated taxable income
- Enter taxable capital gains (if any)
- The system calculates the tax automatically
- Subtract any medical tax credits
- For the second period, subtract the first period payment
- Submit and make payment via EFT or at a bank
2026 Deadlines
| Payment | Due Date |
|---|---|
| First IRP6 | 31 August 2025 |
| Second IRP6 | 28 February 2026 |
| Optional Third IRP6 | 30 September 2026 |
| ITR12 Filing (Provisional) | 31 January 2027 |
Penalties and Interest
Late Payment Penalty
10% of the unpaid amount is added immediately. Interest accrues from the due date at the SARS prescribed rate (currently ~10.5% per annum).
Under-Estimation Penalty
If your second estimate is too low:
- Income ≤ R1 million: Estimate must be ≥ 80% of actual tax. Penalty = 20% of the shortfall.
- Income > R1 million: Estimate must be ≥ 90% of actual tax. Penalty = 20% of the shortfall.
Non-Payment Penalty
Failure to make any required provisional payment results in the 10% penalty plus interest, and potentially criminal prosecution for willful non-compliance.
Third Provisional Payment (Optional)
The third payment is voluntary and due by 30 September 2026. It covers any shortfall between your provisional payments and your actual tax liability. Making this payment prevents interest charges from 1 April 2027 onwards.
Calculation Examples
Scenario: Freelance Graphic Designer
Zanele estimates her taxable income at R480,000 for 2026.
Total Tax Calculation:
- Tax on R480,000 = R77,362 + 31% of (R480,000 − R370,500) = R77,362 + R33,945 = R111,307
- Less primary rebate = R111,307 − R17,235 = R94,072
First Payment (31 Aug 2025): R94,072 ÷ 2 = R47,036
Second Payment (28 Feb 2026): R94,072 − R47,036 = R47,036
Common Mistakes
- Not registering: Many freelancers fail to register and face penalties later
- Underestimating income: Triggers under-estimation penalties at 20%
- Missing deadlines: 10% penalty plus interest applies immediately
- Forgetting deductions: Lower your estimate by claiming all deductions
- Not making the third payment: Results in interest charges
Frequently Asked Questions
Do I pay provisional tax on my rental income?
Yes. Rental income is taxable and must be included in your provisional tax estimates. You can deduct rental-related expenses such as bond interest, rates, insurance, maintenance, and agent fees. If rental is your only additional income and totals less than R30,000 after expenses, you may be exempt from provisional tax.
What happens if my actual income is less than my estimate?
That’s fine. SARS does not penalise you for over-estimating and paying too much provisional tax. The excess will be refunded to you when you file your ITR12 return, or it will be carried forward to the next tax year. The penalties only apply when you under-estimate and pay too little.
Can I pay provisional tax monthly instead of twice a year?
No. The IRP6 provisional tax system only requires two mandatory payments per year (August and February). However, you are welcome to set aside money monthly for these payments. Some taxpayers use a separate savings account to transfer 1/12th of their estimated tax each month, ensuring funds are available when the IRP6 is due.
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