If you earn freelance or side-hustle income that is not taxed through PAYE, you are likely a provisional taxpayer, and provisional tax for freelancers means paying the South African Revenue Service (SARS) in advance instead of one lump sum after the tax year. The 2026 tax year of assessment runs from 1 March 2025 to 28 February 2026, and provisional taxpayers make estimated payments during that period.
This guide sets out what provisional tax is, how the payment cycle works, who it applies to, and how to file. Because thresholds and rates can change each year, confirm the current figures on the official SARS website before you file.
What Provisional Tax Is
Provisional tax is not a separate tax. It is a method of paying your normal income tax in advance, based on your estimated taxable income for the year. Instead of settling everything after your annual assessment, you pay in instalments so the amount owing is spread out.
This matters for freelancers and side hustlers because your income usually has no employer deducting PAYE. Without provisional tax, you could face a single large bill after year-end. The system exists to collect tax closer to when you actually earn it, which also reduces the risk of a shortfall you cannot cover.
SARS administers provisional tax under the same Income Tax framework as salaried employees. Your final liability is still worked out on your annual return, and the provisional payments you already made are set off against it.
How the Payment Cycle Works
Provisional tax uses estimated income, so you calculate what you expect to earn and pay tax on that estimate in stages. There are two compulsory payments during the year and an optional third payment after year-end. The two main deadlines are tied to the tax year running 1 March 2025 to 28 February 2026.
| Payment | Timing | Based on |
|---|---|---|
| First provisional payment | By the end of August (mid-tax-year) | Estimated taxable income for the full year, halved |
| Second provisional payment | By the end of February (tax year-end) | Full-year estimate, less the first payment |
| Third (voluntary) payment | After year-end, before assessment | Any shortfall, to avoid interest |
The third payment, sometimes called a top-up, is optional. However, it can help you avoid interest if your earlier estimates were too low. Keep records of all income and expenses, because your estimate must be reasonable. If SARS finds your estimate was understated, penalties and interest can apply. Confirm the exact submission dates each year on the SARS website, as month-end deadlines can shift with weekends and public holidays.
Who This Applies To
You are generally a provisional taxpayer if you earn income that is not subject to PAYE, such as freelance fees, consulting income, rental income, or profit from a side business. Salaried employees whose only income is a salary are usually not provisional taxpayers, because their employer deducts tax monthly.
- Freelancers and independent contractors paid without PAYE deductions.
- Sole proprietors running a side hustle alongside a job.
- People earning significant rental or investment income.
- Anyone SARS has notified that they are a provisional taxpayer.
Small amounts of extra income may fall under a threshold that excludes you from provisional tax, but these thresholds change and depend on your total income. Because your situation can be borderline, check the current threshold and exclusions on SARS before deciding you do not need to register.
How to Register and File
Provisional tax is filed on the IRP6 return through SARS eFiling. If you are already registered for income tax and have a tax number, you can add provisional tax through your eFiling profile.
- Register for eFiling at the SARS website if you do not already have an account.
- Confirm you are registered as a provisional taxpayer on your profile.
- Estimate your taxable income for the 2026 tax year, deducting allowable business expenses.
- Complete the IRP6 return for the first period and submit it by the August deadline.
- Pay the calculated amount to SARS by the deadline using eFiling or your bank.
- Repeat for the second IRP6 return by the end of February, then submit your annual ITR12 return after year-end.
Keep invoices, bank statements, and expense receipts, because SARS may ask you to support your figures. If you are unsure about allowable deductions or your estimate, a registered tax practitioner can help, especially in your first year.
Where to Verify This
Provisional tax rules, thresholds, deadlines, and the IRP6 process are published and updated by SARS. Always confirm the current 2026 details directly at the official source before you file or pay.