How to calculate provisional tax in South Africa
To calculate provisional tax you estimate your taxable income for the year, work out the tax on that estimate using the normal SARS table and rebate, subtract any tax already paid or withheld, and then split what remains across the two IRP6 payments. The first payment covers roughly half the year's estimated tax, due by the end of August; the second brings you up to the full estimate, due by the last business day of February.
Provisional tax is not an extra tax. It is the same income tax you would pay anyway, collected in advance in two instalments instead of in one assessment at year end. The whole job is estimating the year well and dividing the result.
The steps
- Estimate your taxable income for the full year of assessment: expected income from all sources, less the deductions you can claim.
- Work the tax on that estimate using the SARS table for the year, then subtract your rebate. That gives your estimated annual tax.
- Subtract credits already paid: any PAYE withheld, any foreign tax credits, and, at the second payment, the first provisional payment you already made.
- Split across the two IRP6 returns: the first payment is half the estimated annual tax; the second is the full estimate less the first payment and less any PAYE.
A worked example
Take a freelancer with no employer, estimating taxable income of R600,000 for the 2026 year of assessment, with no PAYE withheld anywhere. R600,000 reaches the fourth bracket, where tax is R121,475 plus 36% of the amount above R512,800.
Step 2, the annual tax:
- R600,000 less R512,800 = R87,200
- R87,200 x 36% = R31,392
- R121,475 + R31,392 = R152,867
- Less the primary rebate of R17,235 = R135,632 estimated tax for the year
Step 4, splitting it. With no PAYE to subtract:
- First IRP6, due end of August: half of R135,632 = R67,816
- Second IRP6, due last business day of February: R135,632 less the R67,816 first payment = R67,816
If this freelancer had also earned a salary with, say, R40,000 of PAYE already withheld, that R40,000 would be subtracted from the R135,632 first, and only the balance split across the two payments. PAYE counts as provisional tax already paid.
The two payment dates
- First payment: within six months of the start of the year of assessment, which for a February year-end means by 31 August, or the last business day before it.
- Second payment: by the last business day of February, the end of the year of assessment.
- Optional third payment: a voluntary top-up after year end, used to reduce interest if your estimate fell short.
These are payment dates, and they are not the same as the return-filing deadlines. The provisional taxpayer's annual ITR12 for the 2026 year is due by 22 January 2027.
Getting the estimate right matters
The second payment carries the most risk, because a material under-estimate there can attract a penalty and interest. SARS expects the second estimate to be reasonably accurate, so a guess that comes in well below your actual taxable income is the costly mistake to avoid. SARS sets out how it tests the second estimate and how the under-estimation penalty is worked out; check the current rules on the SARS provisional-tax page before you finalise the figure, rather than relying on a remembered percentage. When earnings are uncertain, estimating slightly high and using the optional third payment to fine-tune is the cautious route, because the third payment reduces interest without locking in an over-payment you cannot recover until assessment.
Frequently asked questions
How is provisional tax calculated?
You estimate your taxable income for the year, calculate the tax on it using the SARS table and your rebate, subtract any PAYE or other credits already paid, and split the balance across two IRP6 payments. The first is about half the estimated annual tax, the second brings you to the full estimate.
How much is the first provisional payment?
The first payment is half of your estimated tax for the full year, after the rebate. In the worked example, an estimated annual tax of R135,632 gives a first payment of R67,816, due by the end of August, with the same amount due in February as the second payment.
What happens if I underestimate my income?
An accurate second estimate matters most. A material under-estimate of your second payment can attract an under-estimation penalty plus interest, so SARS expects the second estimate to be reasonably close to your actual taxable income. The exact accuracy test and penalty calculation are set out on the SARS provisional-tax page; confirm the current rules there before you finalise the estimate.
Does PAYE count towards provisional tax?
Yes. Any PAYE withheld during the year is treated as tax already paid and is subtracted before you work out the provisional instalments. Someone with a salaried job and side income provisionalises only the tax not already covered by their salary PAYE.
When are the provisional payments due?
The first is due within six months of the start of the tax year, by 31 August for a February year-end, or the prior business day. The second is due on the last business day of February. An optional third top-up can be made after year end to limit interest.
Estimate it on your own figures
A good provisional return turns on a realistic estimate. Our Basic income tax and PAYE calculator applies the 2026 SARS table and rebate to your expected taxable income, which is exactly the annual-tax figure your two payments are built from. Our guide on tax on freelance and side income covers what counts as income and what you can deduct before you estimate, our explainer on who counts as a provisional taxpayer covers whether you must do this at all, and if you are newly self-employed, our piece on how to get a tax number covers the first step.
SARS sources:
Try it on your own numbers
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