Provisional Tax Calculator

How the Provisional Tax Calculator Works

Provisional tax is a system SARS uses to collect income tax in advance from taxpayers who receive income that is not subject to PAYE withholding - typically the self-employed, freelancers, sole proprietors, company directors earning dividends, and individuals with significant rental or investment income.

Provisional taxpayers make two compulsory payments per tax year: the first payment is due at the end of August (six months into the tax year, which runs March to February). It must cover at least 50% of the estimated annual tax liability. The second payment is due at the end of February (year-end) and must cover the remaining estimated liability. A voluntary third payment can be made after year-end to top up any shortfall before the final assessment.

The safe harbour rule protects you from underestimation penalties: if your total provisional tax payments equal at least 90% of your actual tax liability for the year, SARS will not impose a 20% underestimation penalty. Alternatively, you can base your estimate on the prior year's assessed tax (the "basic amount") and be safe from penalties even if your income grows significantly.

The calculator estimates your annual tax using the 2025/26 SARS brackets, splits the liability into two equal payments, and shows the 90% safe harbour target you must reach to avoid penalties.

How to Use This Calculator

1. 1

   Enter your estimated annual taxable income

   Include all income sources: business profit, freelance fees, rental income, interest, and any salary or PAYE income. Be conservative - overestimating and paying more than necessary results in a refund at assessment, while underestimating risks a 20% penalty.

2. 2

   Enter any PAYE already withheld

   If you also earn a salary and your employer withholds PAYE, this reduces your provisional tax obligation. Enter the total PAYE expected to be withheld for the year - your payslips will show the monthly amount.

3. 3

   Review the payment schedule

   The calculator shows your first payment (due end of August), second payment (due end of February), and the safe harbour amount. Aim to pay at least the safe harbour amount by the second payment date to avoid penalties.

4. 4

   Set a reminder for payment dates

   Provisional tax payments must be submitted via SARS eFiling or at a SARS branch by the due date. Late payment attracts interest at the prescribed rate (currently 10.25% per year). SARS will not notify you - it is your responsibility to file and pay on time.

5. 5

   Reconcile at year-end

   Once you have filed your annual income tax return and received your assessment, compare the actual tax liability to total provisional payments made. Any shortfall must be paid within 30 days of assessment; any overpayment is refunded to your bank account.

Frequently Asked Questions

Who must register as a provisional taxpayer in South Africa?

You must register for provisional tax if you receive any income not subject to PAYE withholding - this includes freelance or consulting income, rental income, business profits, director's fees, and significant investment income. Employees whose only income is salary and interest below R23 800/year (under 65) are generally exempt. When in doubt, consult a tax practitioner - penalties for failing to register can be substantial.

What are the provisional tax payment due dates in South Africa?

The first provisional tax payment covers the first six months of the tax year (1 March to 31 August) and is due on 31 August. The second payment covers the full year and is due on the last business day of February. If your taxable income is below R1 million, the payments are typically due on the last day of August and February; above R1 million, they must be submitted via eFiling. A voluntary third payment is due within 6 months of year-end (7 months after the end of February assessment).

What is the provisional tax safe harbour rule?

The safe harbour protects you from the 20% underestimation penalty. You are protected if your total provisional payments for the year equal at least 90% of your actual final tax liability. Alternatively, you are safe if your payments equal at least the prior year's assessed tax (the 'basic amount') - even if your income grew significantly. The basic amount safe harbour is particularly useful for taxpayers whose income fluctuates year to year.

What happens if I underestimate my provisional tax?

If your actual tax liability exceeds your provisional tax payments by more than 10%, SARS may impose a 20% underestimation penalty on the difference. This penalty is levied on assessment and is in addition to any interest on late payment. The penalty can be waived if you have a reasonable excuse (serious illness, natural disaster) - apply in writing to SARS within 30 days of the assessment.

Can I change my provisional tax estimate after submitting?

You can revise your estimate before the due date by submitting a new IRP6 return on eFiling. After the due date, you cannot revise the filed IRP6, but you can make an additional voluntary payment to reduce the risk of an underestimation penalty. Paying more than required simply results in a refund at final assessment.

Is provisional tax the same as income tax in South Africa?

Provisional tax is a pre-payment mechanism for income tax - it is not a separate tax. The amounts you pay are credits towards your final income tax liability for the year. At assessment (when you file your annual return), SARS calculates your actual tax, subtracts all provisional payments, and either raises an additional amount to pay or issues a refund. Provisional tax does not change how much tax you owe - only the timing of payment.