Provisional Tax in South Africa 2026: Deadlines, Calculations & IRP6 Guide

If you earn any income in South Africa that doesn’t already have tax deducted at source, provisional tax is something you need to get right. It affects sole traders, freelancers, company directors, landlords, and anyone else whose income falls outside the Pay-As-You-Earn (PAYE) system. Yet despite how common it is, provisional tax remains one of the most misunderstood parts of the South African tax landscape.

This guide walks you through everything you need to know for the 2026/2027 tax year — from who needs to pay, to the exact deadlines, how to fill in your IRP6, and what happens if you get it wrong. Whether you’re a business owner handling your own affairs or a practitioner managing dozens of clients, this article has you covered.

What Is Provisional Tax?

Provisional tax is not a separate tax — it’s a mechanism for paying your normal income tax in advance. Instead of waiting until the end of the tax year and settling one large amount, SARS requires certain taxpayers to make two (and sometimes three) payments spread across the year. Think of it as paying your income tax in instalments.

For salaried employees, this advance payment happens automatically through PAYE — your employer withholds tax from your salary each month and sends it to SARS on your behalf. But if you earn income that isn’t subject to PAYE — business profits, rental income, freelance earnings, investment returns, or director’s remuneration from your own company — you’re responsible for estimating your tax liability and paying it to SARS yourself, using the IRP6 return.

The South African Revenue Service (SARS) administers provisional tax under the Fourth Schedule of the Income Tax Act. The system is designed to smooth government cash flow and prevent taxpayers from facing an unmanageable lump-sum bill at assessment time. When done properly, provisional tax payments should mean you owe very little — or receive a small refund — when your final assessment is issued.

Who Must Pay Provisional Tax in South Africa?

The general rule is straightforward: if you receive any taxable income that is not subject to employees’ tax (PAYE), you are a provisional taxpayer. In practice, this includes:

• Sole proprietors and self-employed individuals — Anyone running a business in their own name, from consultants to plumbers to online retailers.
• Freelancers and independent contractors — If your clients don’t deduct PAYE from your invoices, you’re responsible for provisional tax.
• Rental income earners — Individuals who earn rental income from property, whether residential or commercial.
• Company directors — Directors who receive remuneration, dividends, or other income from their companies often need to register as provisional taxpayers.
• Companies, close corporations, and trusts — All registered companies and CCs are provisional taxpayers by default.
• Individuals with significant investment income — Interest, foreign dividends, and capital gains above the annual exemptions can trigger provisional tax obligations.

Who Is Exempt?

You are not a provisional taxpayer if you earn only employment income subject to PAYE (i.e., salary and wages), and your taxable interest and capital gains do not exceed the exemption thresholds. Additionally, natural persons under 65 whose taxable income from interest, foreign dividends, rental, and business income does not exceed R30 000 for the year are excluded. Individuals who earn only remuneration from one employer, with no other sources of income, generally do not need to worry about provisional tax at all.

If you’re a tax practitioner helping clients navigate these rules, make sure you’re registered as a tax practitioner with SARS so you can file on their behalf through eFiling.

Provisional Tax Deadlines for 2026

For taxpayers whose tax year ends on the last day of February (which is most individuals and many companies), the 2027 year of assessment runs from 1 March 2026 to 28 February 2027. Here are the key provisional tax deadlines:

Payment Period

IRP6 Submission

Due Date

Notes

First period (IRP6)

Compulsory

31 August 2026

Based on estimated taxable income for the full year. Pay at least half your estimated liability.

Second period (IRP6)

Compulsory

28 February 2027

Refined estimate based on actual results so far. Pay the balance of your estimated liability minus the first payment.

Third period (top-up)

Voluntary

30 September 2027

Optional top-up to avoid underestimation penalties. Particularly useful once you have final figures for the year.

A few important notes on these dates. If a deadline falls on a weekend or public holiday, SARS generally expects payment by the last business day before the deadline. Always confirm the exact dates on SARS eFiling or the SARS website, as they occasionally adjust due dates. For companies with non-February year-ends, the deadlines shift accordingly — the first payment is due six months after the start of the financial year, and the second is due by the last day of the financial year.

Note that if your business is also registered for VAT, the provisional tax cycle runs independently of your VAT registration and filing obligations. Make sure you track both sets of deadlines separately.

How to Calculate Provisional Tax (IRP6 Step-by-Step)

Filling in the IRP6 can feel daunting the first time, but the calculation itself follows a logical sequence. Here’s how to work through it:

1. Estimate your total taxable income for the full year. This is your gross income minus allowable deductions (business expenses, retirement fund contributions, medical aid credits, etc.). For the first payment in August, you’ll be working with projections. For the second payment in February, you’ll have much more accurate figures. Be realistic — over-estimating is better than under-estimating when it comes to avoiding penalties.
2. Apply the SARS tax tables to your estimated taxable income. For the 2027 year of assessment, the individual tax brackets are applied progressively. For example, income up to R237 100 is taxed at 18%, income between R237 101 and R370 500 at 26%, and so on up to the top marginal rate of 45% on income above R1 817 000. Companies pay a flat rate of 27% on taxable income. Subtract the primary rebate (R17 235 for individuals under 65) and any secondary or tertiary rebates if applicable.
3. Subtract any PAYE already deducted. If you have a salaried job alongside your business and your employer deducts PAYE, include this as a credit against your total tax liability. You only need to pay the provisional tax on the portion not covered by PAYE.
4. Determine the amount due for this period. For the first payment (August), you pay at least half of your estimated total tax liability for the year, minus any PAYE credits to date. For the second payment (February), you pay the total estimated liability minus the first provisional payment and any PAYE credits.
5. Submit via eFiling and make payment. Log in to SARS eFiling, navigate to Returns > Provisional Tax, and complete your IRP6. Payment can be made via EFT using the payment reference number generated by eFiling. Make sure payment reflects in SARS’s bank account by the due date — not just the date you initiate the transfer.

Practical Example

Let’s say Thandi is a freelance graphic designer. She estimates her taxable income for the 2027 year of assessment at R600 000. Here’s how she’d calculate her first provisional tax payment:

• Tax on R600 000 using 2027 tables: R237 100 at 18% = R42 678. Next R133 400 (R237 101 – R370 500) at 26% = R34 684. Next R229 500 (R370 501 – R600 000) at 31% = R71 145. Total tax = R148 507.
• Less primary rebate: R148 507 – R17 235 = R131 272.
• Less PAYE credits: Thandi has no employer, so PAYE is R0.
• First provisional payment (50%): R131 272 ÷ 2 = R65 636 due by 31 August 2026.
• Second provisional payment: If her actual taxable income ends up being R620 000, she’d recalculate the total liability, subtract the first payment, and pay the difference by 28 February 2027.

The key takeaway: your estimate doesn’t have to be perfect, but it does need to be reasonable. SARS gives you some breathing room with the 20% threshold (more on that below), but consistently low-balling your income will land you in trouble.

Penalties for Late or Underpayment

SARS does not take provisional tax non-compliance lightly. There are several consequences to be aware of:

Underestimation Penalty

This is the big one. If your estimate of taxable income in either your first or second provisional return is less than 80% of your actual taxable income as finally assessed, SARS will impose a penalty of 20% on the shortfall. Put differently, the penalty is 20% of the difference between the tax you should have paid (based on actual income) and the tax you actually paid based on your estimate. For taxpayers with a taxable income exceeding R1 million, the threshold tightens — your estimate must be within 80% of the basic amount (which is typically the lower of your actual taxable income or your taxable income from the preceding year).

Interest on Late Payments

SARS charges interest on any provisional tax that is paid late. The interest rate is set by the Minister of Finance and is linked to the repo rate. As of early 2026, the prescribed rate of interest is approximately 10.75% per annum. Interest runs from the day after the payment was due until the date it’s actually received by SARS. Even a few days’ delay can add up, particularly on larger amounts.

Administrative Non-Compliance Penalties

Under the Tax Administration Act, SARS can impose fixed-amount penalties for failing to submit your IRP6 on time. These penalties are based on your assessed loss or taxable income and can range from R250 to R16 000 per month, accumulating for up to 35 months. The penalty is separate from interest and underestimation penalties — meaning you could face all three simultaneously if you both file late and underestimate your income.

The bottom line: it’s almost always cheaper to overestimate slightly (and receive a refund at assessment) than to underestimate and face penalties and interest.

Tips for Practitioners Managing Multiple Clients

If you’re an accountant, bookkeeper, or tax practitioner, provisional tax season can be one of the most intensive periods of the year. Keeping track of deadlines, estimates, and payments for dozens (or hundreds) of clients requires systems, not just spreadsheets. Here are some practical strategies:

• Start gathering estimates early. Don’t wait until August to request income projections from clients. Begin in June or July, giving yourself time to follow up with clients who are slow to respond. For the second payment, start your calculations in January.
• Use batch processing on eFiling. SARS eFiling allows tax practitioners to submit multiple IRP6 returns in a batch. If you’re not using this feature yet, it can save you hours of repetitive data entry.
• Set up calendar reminders with buffer time. Create reminders at least two weeks before each deadline. This gives you time to chase outstanding information and still submit comfortably before the cut-off.
• Keep a record of prior-year assessments. SARS uses the prior year’s taxable income as a benchmark for the basic amount. Having this readily available for each client makes calculations faster and helps you spot unusual variances that might indicate a problem with the estimate.
• Leverage accounting software for deadline tracking. Managing provisional tax across a portfolio of clients is significantly easier with the right tools. Solutions like Accounter help practitioners track provisional tax deadlines across all clients, flag upcoming due dates, and maintain a central view of each client’s tax position throughout the year.
• Communicate proactively with clients. Send a brief email or message to clients explaining what provisional tax is, when their payment is due, and what you need from them. Many clients don’t understand provisional tax and will appreciate the clarity. A template email at the start of each provisional tax period can save you dozens of phone calls.
• Consider the third payment strategically. The voluntary third payment (due September 2027 for February year-ends) is often overlooked. But for clients whose income grew significantly during the year, a top-up payment can prevent underestimation penalties. Flag this opportunity proactively.

Common Mistakes to Avoid

After years of working with provisional taxpayers, certain mistakes come up again and again. Here are the ones that cost people the most:

• Using last year’s figures without adjustment. If your business is growing, last year’s income is no longer a reliable estimate. Always consider whether the current year’s income will be materially different.
• Forgetting to include all income sources. Rental income, side projects, investment returns, and once-off capital gains all count. Omitting any source can push you past the 20% underestimation threshold.
• Confusing the payment date with the submission date. You can submit the IRP6 on eFiling, but the payment must clear in SARS’s bank account by the deadline. Allow two to three business days for EFT transfers to reflect.
• Not setting money aside throughout the year. Many provisional taxpayers spend their revenue and then struggle to make payments. A good practice is to transfer a percentage of each invoice payment into a dedicated tax savings account as soon as it arrives.

Conclusion

Provisional tax doesn’t have to be a headache. By understanding who needs to pay, when payments are due, and how to calculate each instalment, you can stay compliant and avoid unnecessary penalties. Mark the key dates — 31 August 2026 and 28 February 2027 — in your calendar now, estimate your income conservatively, and submit your IRP6 via eFiling with time to spare.

If you’re a practitioner managing multiple clients, invest in tools and processes that keep you ahead of deadlines rather than scrambling to meet them. Your clients — and your stress levels — will thank you for it.