Are you a provisional taxpayer?

Published on 5th August, 2026 at 10:07 am

Here’s what you need to know before 31 August.

The deadline is closer than you think. If you earn income outside of a regular salary, now is the time to check whether provisional tax applies to you and what you need to do before 31 August 2026.

You have FREE access to TaxTim to help you navigate your tax responsibilities with confidence. Whether you’re freelancing or earning a rental income, TaxTim can help you understand your obligations, submit your return and avoid costly penalties.

Use your TaxTim benefit to file your tax return and stand a chance to win R10,000 towards your Tax-Free Savings Account. T&Cs apply.

Reading time: 5 minutes

In this article, you will learn:

• What provisional tax is and who it applies to.
• How to determine whether you’re a provisional taxpayer.
• The key provisional tax deadlines for the 2027 tax year.
• What happens if you miss the 31 August payment deadline.
• How TaxTim can help you submit your provisional tax return correctly.

If you earn income outside of a regular salary, there’s a good chance you’re a provisional taxpayer and a good chance SARS already knows it, even if you don’t.

The first provisional payment for the 2027 tax year is due 31 August 2026. Miss it, and the penalties stack up fast.

Here’s what you actually need to know.

What is provisional tax?

Provisional tax is not a separate tax. It’s a way of paying your normal income tax in advance (twice a year, in August and February) instead of waiting until tax season to settle the whole bill.

The system exists because SARS doesn’t trust you to save up a lump sum over a year and hand it over in July. So they take it in two instalments, and a third optional top-up if you owe more than expected.

If you only earn a salary, your employer deducts PAYE every month. You’re already paying as you go. No provisional tax needed.

But the moment you earn income that isn’t PAYE’d, provisional tax probably applies to you.

Who counts as a provisional taxpayer?

You’re a provisional taxpayer if any of the following are true:

• You earn rental income from a property
• You earn freelance, consulting, or independent contractor income
• You run a business as a sole proprietor
• You earn investment income (interest, dividends, capital gains) above certain thresholds
• You’re a director of a private company
• You earn meaningful income from a side hustle – including content creation, online sales, crypto trading, or a small services business

There’s a small exemption for individuals over 65 with limited income from interest, dividends, and rentals – but most South Africans earning anything outside a salary will need to register.

The 2027 tax year deadlines

For the 2027 tax year (1 March 2026 to 28 February 2027):

• First provisional payment (IRP6): 31 August 2026
• Second provisional payment (IRP6): 28 February 2027
• Optional third “top-up” payment: 30 September 2027
• Final tax return (ITR12): During the 2027 filing season

Your first payment is roughly half of your estimated tax for the full year. Your second payment brings the total close to what you actually owe. The third payment is optional, and exists to let you top up before interest starts running.

The penalty for missing 31 August

This is the part most provisional taxpayers get wrong: there is no under-estimation penalty for the first payment. SARS doesn’t punish you in August for getting your estimate slightly off. What they do punish is late payment.

If you don’t pay by 31 August 2026, SARS charges a 10% late payment penalty on the unpaid amount, plus interest until you settle.

The under-estimation penalty only kicks in at the second payment in February – so you have time to refine your numbers between now and then. August is about being on time. February is about being accurate.

What to do now

If you’re not yet registered for provisional tax and you should be, register on eFiling. The form is the IRP6.

If you’re already registered, gather your numbers for the period 1 March to 31 August:

• Income earned so far
• Reasonable estimate of income for the rest of the tax year
• Deductible expenses
• Retirement contributions
• Medical aid contributions

Then submit the IRP6 and pay before 31 August.

The honest truth

Provisional tax is the part of the South African tax system most likely to trip up freelancers, side-hustlers, and small business owners – not because it’s complicated, but because SARS doesn’t send a reminder. The deadline arrives quietly, and the penalty arrives loudly.

If you’re not sure whether you qualify, or how to estimate, don’t guess. TaxTim’s provisional tax service walks you through the calculation, the submission, and the payment – without you needing to know what a basic amount is.

Provisional tax made simple.
Get TaxTim’s provisional tax service.