Missed the 23 October SARS deadline? Late tax return penalties, interest and what to do now (2026).

Figures checked against SARS and the Tax Administration Act on 30 October 2026. This is general information, not tax advice for your situation.

Short answer: if you didn't file your 2026 tax return by Friday 23 October 2026,[1] SARS can charge a fixed admin penalty of R250 to R16,000 a month. The amount depends on your taxable income for the previous year,[2] and the penalty repeats for every month the return stays outstanding, for up to 35 months.[3] File now. Submitting the return is what stops new penalties.[3] If you also owe tax, interest runs on the unpaid amount at 10.50% a year (SARS's rate from 1 September 2026).[4] Some tax types, such as provisional tax, PAYE and VAT, also carry a 10% late-payment penalty.[5]

Want a number for your own situation? Our SARS penalty calculator gives you an estimate. The rest of this post explains where the numbers come from.

What's the SARS penalty for a late tax return?

It's an "administrative non-compliance penalty", usually just called the admin penalty. SARS imposes it under the Tax Administration Act (TAA) when a person fails to submit a return.[6] Since 1 December 2022 it applies to any individual with one or more outstanding income tax returns for 2007 or later years.[3]

The amount is fixed, not a percentage. It's set by your assessed loss or taxable income for the "preceding year":[2]

SARS admin penalty table (TAA section 211)

Source: Tax Administration Act s211(1).[2]

A few things people miss:

• A loss or a zero year still costs R250 a month. There's no R0 row.[2]
• It keeps growing. The penalty goes up by the same amount for each month, or part of a month, that you haven't fixed the problem, starting one month after the penalty is assessed.[2]
• There's a cap, but it's a long one. If SARS has your current address, increases stop after 35 months from the date of the penalty assessment. If SARS doesn't have your current address and can't deliver the assessment, the limit is 47 months from the date of non-compliance.[2]
• If SARS doesn't know last year's income, it can charge the R250 band or estimate your income. It adjusts the penalty later once your actual figure is known.[2]
• Unpaid penalties attract interest too. For a fixed penalty, interest runs from the date the penalty (or each monthly increase) was assessed.[7]

"SARS high income tax penalties": what high earners face

High earners pay more because the bands climb with income. Someone with taxable income above R1 million last year pays R2,000 a month, so 12 months of an outstanding return comes to R24,000. Above R50 million, it's R16,000 a month.[2]

Don't confuse the admin penalty with the much bigger understatement penalty. That one applies when a return understates your tax, and it's a percentage of the shortfall. It runs from 10% for a "substantial understatement" up to 200% for intentional tax evasion in a repeat or obstructive case.[8] Paying late isn't the same as understating your income, so most people reading this won't face it.

I missed the 23 October 2026 deadline. What now?

For non-provisional individuals who weren't auto-assessed, filing season ran from 13 July to 23 October 2026. Provisional taxpayers have until 22 January 2027, and trusts file between 19 September 2026 and 22 January 2027.[1] If you were auto-assessed and agree with the outcome, SARS says you don't need to do anything.[9]

If you should have filed by 23 October and didn't, work through this list this week:

1. File the return on eFiling now. SARS's own advice is to submit the outstanding return, whether or not you agree with the penalty, because that stops further penalties.[3]
2. Check whether a penalty has been charged. See "How to check for a SARS penalty" below.
3. Pay what you owe by the due date on your assessment. Interest runs from the date the tax was due until the date you pay,[10] so every week of delay adds to the bill. SARS only counts a payment once it reaches the SARS bank account. If the due date falls on a weekend or public holiday, pay by the business day before.[11]
4. Can't pay it all at once? You can ask SARS for a deferred payment arrangement.[3]
5. Don't ignore it. If an admin penalty isn't paid, SARS can appoint a third party such as your employer to collect it.[3]
6. If you had a genuine reason, ask for the penalty to be remitted (see the next section). Do it on time: the request should go in by the payment date on the penalty assessment.[12]

How admin penalties, late-payment penalties and interest on overdue tax are calculated

There are three different charges, and they get muddled all the time.

1. The admin (late-filing) penalty. It's a fixed rand amount from the table above, charged monthly while the return is outstanding.[2]

2. The 10% late-payment penalty. The TAA says that when tax isn't paid on time, SARS must impose a penalty equal to the percentage "prescribed in the tax Act".[5] In practice that means 10% of the amount paid late for:

• provisional tax (first and second payments): 10% of the amount not paid on time;[13]
• PAYE, SDL and UIF that employers pay over: 10% on late or outstanding amounts, plus interest;[14]
• VAT: 10% of the VAT paid late.[15]

It's a once-off percentage of the late amount. It doesn't grow each month.

3. Interest on overdue tax. Interest accrues on the unpaid balance from the date the tax was due until you pay it,[10] at the "prescribed rate".[16] SARS publishes that rate as Table 1: interest rates on outstanding taxes. It is 10.50% a year from 1 September 2026, after 10.25% from 1 March to 31 August 2026.[4] The TAA lets SARS calculate interest on the daily balance, compounded monthly, and SARS announces by public notice when that method applies to each tax type.[7] That's why SARS's figure can differ by a few rand from a simple calculation like the one below. When the rate changes, interest for the earlier part of the period stays at the old rate.[16]

Heads-up for accountants: the prescribed rate is linked to a rate the Minister sets under the Public Finance Management Act. A change only takes effect for SARS interest from the first day of the second month after the new PFMA rate starts.[16] Check Table 1 again before you quote a rate to a client.

(Not the same thing: interest you charge your customers on overdue invoices falls under a different law. Use our late payment interest calculator for that.)

Worked example: admin penalty + 10% late-payment penalty + interest

Illustration only. Lerato and every amount below are invented to show the arithmetic. Your figures depend on your own assessments. SARS's own calculation may differ slightly.

Lerato is a sole-proprietor bookkeeper and a provisional taxpayer. Two things have gone wrong:

• An earlier year's ITR12 is still outstanding. Her taxable income for the year before that was R420,000.
• She paid her first 2027 provisional tax payment of R20,000 on Wednesday 30 September 2026. It was due on Monday 31 August 2026, the last business day of August,[17] so it was 30 days late.

A. Admin penalty (late return)

• R420,000 falls in the R250,001 to R500,000 band, so the penalty is R500 a month.[2]
• Say SARS assessed the penalty and Lerato filed three months later, so there are four monthly penalties in total: 4 × R500 = R2,000.

B. 10% late-payment penalty (provisional tax)

• 10% × R20,000 = R2,000.[13]

C. Interest on the late provisional tax

• Rate: 10.50% a year (Table 1 rate from 1 September 2026).[4]
• Simple daily estimate: R20,000 × 10.50% × 30 ÷ 365 = R2,100 × 0.08219 = R172.60.
• (We've simplified by applying 10.50% to all 30 days. The rate on 31 August itself was 10.25%,[4] and SARS works on the daily balance with monthly compounding where that method applies.[7] Either way, the difference is cents to a few rand.)

Total: R2,000 + R2,000 + R172.60 = R4,172.60

That's before any interest on the admin penalty if she doesn't pay it straight away.[7] Two other points stand out:

• Remission could cut this down. If it's her first incidence, she has reasonable grounds and she has filed and paid, SARS may remit up to R2,000 of the admin penalty and some or all of the 10% penalty.[18]
• If Lerato were a salaried, non-provisional taxpayer who simply owed R20,000 on assessment, the 10% line wouldn't apply in the same way. The 10% penalty only applies where a tax Act prescribes a percentage,[5] and provisional tax, PAYE and VAT are the ones covered above. She'd face the admin penalty plus interest on the unpaid tax. If you're unsure which applies to you, check your statement of account or ask your tax practitioner.

To try your own numbers, use the SARS penalty calculator.

How to check for a SARS penalty, and how to ask for it to be waived (remission)

Check whether you've been penalised

• eFiling: look at your SARS correspondence and statement of account, or request a Penalty Statement of Account (APSA). SARS no longer sends the APSA with the penalty notice, so you have to ask for it.[3]
• SARS Contact Centre: 0800 00 SARS (7277).[3]
• A SARS branch, by appointment.[3]

Each monthly penalty gets its own transaction number.[3] You'll need those numbers for a remission request.

Request for Remission (RFR)

• Where: on eFiling or at a SARS branch. Manual forms are accepted only in exceptional cases.[11]
• What to include: what stopped you from complying, plus each period, amount and transaction code from the penalty notice.[11]
• When: on or before the payment date on the penalty assessment. SARS can accept a late request in limited cases.[12] While SARS considers your request, and for 21 business days after it tells you its decision, it may not take collection steps on that penalty, apart from specific exceptions such as fraud or a risk that assets will be moved.[12]

When will SARS agree?

• First incidence, or the return was less than five business days late: SARS may remit up to R2,000 of a fixed admin penalty. You need reasonable grounds, and you must have fixed the problem, i.e. filed the return.[19]
• 10% late-payment penalties: SARS may remit if it's a first incidence or the penalty is under R2,000, there are reasonable grounds, and you've paid the tax.[19]
• Exceptional circumstances: SARS must remit all or part of the penalty if something made you incapable of complying. The law lists a disaster, a civil disturbance or service disruption, serious illness or accident, serious emotional or mental distress, a SARS error or delay, serious financial hardship, or something of similar seriousness.[20]
• Interest is harder. SARS can only waive interest caused by circumstances beyond your control, and the law limits those to a disaster, a civil disturbance or service disruption, or a serious illness or accident.[7]

If SARS says no: you can object, and then appeal. You can't object until the RFR has been submitted and decided.[21]

Quick recap

• Late return: R250 to R16,000 a month, based on last year's taxable income, for up to 35 months (47 if SARS can't reach you).[2]
• File first. That's what stops the monthly penalty.[3]
• Late payment: interest at 10.50% a year from 1 September 2026,[4] plus 10% where the tax Act sets it (provisional tax, PAYE, VAT).[13][14][15]
• Got a good reason? Submit an RFR before the penalty's payment date.[12]

Estimate yours with the SARS penalty calculator. Keep an eye on what's due next with our SARS tax calendar. If you're provisional, see our provisional tax guide and the provisional tax calculator.

This post is general information, not tax advice. Penalty and interest rules depend on your circumstances and can change, so check with SARS or a registered tax practitioner before you act.

Frequently asked questions

What is the SARS penalty for a late tax return?

SARS charges a fixed admin penalty of R250 to R16,000 a month, depending on your taxable income for the previous year. It repeats every month the return is outstanding, for up to 35 months (47 months if SARS can't reach you at your current address). Submitting the return stops new penalties.

I missed the 23 October 2026 deadline. What should I do?

Submit your return on eFiling as soon as you can, because that stops further monthly penalties. Pay any tax you owe by the due date on your assessment to limit interest. If SARS charges a penalty and you had a good reason, submit a Request for Remission before the payment date on the penalty notice.

How is interest on overdue tax calculated?

SARS charges interest at the prescribed rate from the date the tax was due until the date you pay. The rate on outstanding tax is 10.50% a year from 1 September 2026 (SARS Table 1). The law lets SARS calculate it on the daily balance, compounded monthly.

Is there a 10% penalty for paying SARS late?

Yes, for tax types where the law sets one. That includes provisional tax, PAYE that employers pay over, and VAT. It's 10% of the amount paid late, on top of interest.

How do I check if I have a SARS penalty?

Look at your statement of account on eFiling, or ask for a Penalty Statement of Account (APSA) on eFiling, through the SARS Contact Centre on 0800 00 7277, or at a branch (by appointment).

Can a SARS penalty be waived?

You can ask SARS to remit it with a Request for Remission (RFR) on eFiling or at a branch. For a first incidence with reasonable grounds, after you've fixed the problem, SARS may remit up to R2,000 of a fixed penalty. It must remit the penalty if exceptional circumstances, such as serious illness or a disaster, made it impossible for you to comply. You can only object once SARS has decided your RFR.

Sources

1. SARS, Filing Season 2026, https://www.sars.gov.za/types-of-tax/personal-income-tax/filing-season/ and Changes for Filing Season 2026 (29 Jun 2026), https://www.sars.gov.za/latest-news/changes-for-filing-season-2026/ (checked 25 Oct 2026).
2. Tax Administration Act 28 of 2011, s211(1) table, s211(2)(a) to (b) (35/47 months), s211(4) to (5) (unknown income), https://www.acts.co.za/tax-adminis/211__fixed_amount_penalty_table (checked 25 Oct 2026).
3. SARS, Admin Penalty, https://www.sars.gov.za/individuals/what-if-i-do-not-agree/admin-penalty/ (checked 25 Oct 2026).
4. SARS, Interest Rates Table 1 (outstanding taxes), https://www.sars.gov.za/wp-content/uploads/Legal/Rates/Legal-Pub-IRT-01-Interest-Rates-Table-1.pdf; index page "updated on 20 July 2026", https://www.sars.gov.za/legal-counsel/legal-counsel-publications/tables-of-interest-rates/ (checked 25 Oct 2026).
5. Tax Administration Act s213(1), https://www.acts.co.za/tax-adminis/213__imposition_of_percentage_based_penalty (checked 25 Oct 2026).
6. Tax Administration Act s210, https://www.acts.co.za/tax-adminis/210__non_compliance_subject_to_penalty, and SARS Admin Penalty page (fn 3) (checked 25 Oct 2026).
7. Tax Administration Act s187(2) (daily balance, compounded monthly), s187(3)(d) (interest on fixed penalties), s187(6) to (7) (interest relief), https://www.acts.co.za/tax-adminis/187__general_interest_rules (checked 25 Oct 2026).
8. Tax Administration Act s223(1) understatement penalty table, https://www.acts.co.za/tax-adminis/223__understatement_penalty_percentage_table (checked 25 Oct 2026).
9. SARS, Changes for Filing Season 2026, https://www.sars.gov.za/latest-news/changes-for-filing-season-2026/ (checked 25 Oct 2026).
10. Tax Administration Act s187(1) and s188(1), https://www.acts.co.za/tax-adminis/188__period_over_which_interest_accrues (checked 25 Oct 2026).
11. SARS, Request for Remission of Administrative Non-compliance Penalty (last updated 2 Apr 2026), https://www.sars.gov.za/individuals/what-if-i-do-not-agree/request-for-remission-of-administrative-non-compliance-penalty/ (checked 25 Oct 2026).
12. Tax Administration Act s215(1), (3), (4), https://www.acts.co.za/tax-adminis/215__procedure_to_request_remittance_of_penalty (checked 25 Oct 2026).
13. Income Tax Act 58 of 1962, Fourth Schedule para 27(1), https://www.acts.co.za/income-tax/sch_4_27_penalty_on_late_payment_of_provisional_tax (checked 25 Oct 2026).
14. SARS, Guide for Employers iro Employees' Tax (2027), PAYE-GEN-01-G21, section "Interest and penalty" (cites Fourth Schedule para 6(1) and s89bis(2)), https://www.sars.gov.za/wp-content/uploads/Ops/Guides/PAYE-GEN-01-G21-Guide-for-Employers-iro-Employees-Tax-for-2027-External-Guide.pdf (checked 25 Oct 2026).
15. Value-Added Tax Act 89 of 1991, s39(1), https://www.acts.co.za/value/39__penalty_and_interest_for_failure_to_pay_tax_when_due (checked 25 Oct 2026).
16. Tax Administration Act s189(1), (3) to (5), https://www.acts.co.za/tax-adminis/189__rate_at_which_interest_is_charged; Table 1 note on the PFMA link (fn 4) (checked 25 Oct 2026).
17. SARS, Provisional Tax, https://www.sars.gov.za/types-of-tax/provisional-tax/ ("31 August, if it is a business day…") (checked 25 Oct 2026). 31 Aug 2026 is a Monday.
18. Tax Administration Act s217(1) and (3), https://www.acts.co.za/tax-adminis/217__remittance_of_penalty_for_nominal_or_first_incidence_of_non_compliance (checked 25 Oct 2026).
19. As fn 18; also the SARS RFR page conditions table (fn 11).
20. Tax Administration Act s218(1) to (2), https://www.acts.co.za/tax-adminis/218__remittance_of_penalty_in_exceptional_circumstances; SARS RFR page (fn 11) (checked 25 Oct 2026).
21. SARS Admin Penalty page (fn 3); Tax Administration Act s220, https://www.acts.co.za/tax-adminis/220__objection_and_appeal_against_decision_not_to_remit_penalty (checked 25 Oct 2026).