Provisional Tax in South Africa: 2026/27 Due Dates, Penalties and the Proposed R1.8 Million Change
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What Is Provisional Tax?
Provisional tax is not a separate tax. It is a way of paying your normal income tax during the year, instead of getting one big bill after you file your return.
Salary earners already pay tax every month, because their employer deducts PAYE. People who earn money in other ways, such as rent, freelance work or a small business, have no employer doing this for them. Provisional tax makes them pay in two parts during the year.
Everything you pay is credited when SARS assesses your yearly income tax return (the ITR12). If you paid too much, SARS refunds you. If you paid too little, you pay the rest, and penalties and interest can be added.
Provisional Tax Due Dates for 2026/27
SARS says the first payment is due within six months of the start of the tax year, and the second by the last business day of February. A third payment is voluntary. If a due date is not a business day, you pay by the last business day before it.
| Payment | What it covers | Due date for the 2027 tax year |
|---|---|---|
| First (IRP6) | Half of your estimated tax for the whole year | Monday, 31 August 2026 (passed) |
| Second (IRP6) | The rest of your estimated tax for the year | Friday, 26 February 2027 |
| Third (top-up, voluntary) | Any tax still owed after the year ends | Thursday, 30 September 2027 |
| 2026 income tax return (ITR12) for provisional taxpayers | Your final return for 1 March 2025 to 28 February 2026 | 22 January 2027 |
Some websites list 28 February 2027 for the second payment. That date is a Sunday, so under the SARS business day rule the last day is Friday, 26 February 2027.
The return deadline in the last row is part of the SARS filing season. See our SARS tax season 2026 deadline guide for all the filing dates.
Who Must Pay Provisional Tax?
According to SARS, you are a provisional taxpayer if you are:
- a person who earns income other than a salary (for example rent, freelance fees, business profit or a lot of interest),
- a person paid by an employer who is not registered for PAYE,
- any company, or
- someone the Commissioner has told in writing that they are a provisional taxpayer.
You can have a salary and still be a provisional taxpayer. A teacher who also rents out a flat, or an office worker who does paid freelance design work at night, can fall into this group.
SARS also says it is up to you to work out whether you must register. It will not always tell you.
Who Does Not Have to Pay Provisional Tax?
You do not have to pay provisional tax if you have no business income and one of these is true for the 2027 tax year:
| Test | Limit for the 2027 tax year |
|---|---|
| Your taxable income is at or below the tax threshold (under 65) | R99,000 |
| Your taxable income is at or below the tax threshold (65 to 74) | R153,250 |
| Your taxable income is at or below the tax threshold (75 and older) | R171,300 |
| Your interest, foreign dividends, rent and pay from an unregistered employer add up to | R30,000 or less |
Interest on its own does not make you a provisional taxpayer if it stays below R23,800 a year (under 65) or R34,500 a year (65 and older). Money earned in a tax-free savings account does not count either. SARS also excludes groups such as approved public benefit organisations and deceased estates.
The tax thresholds above match the 2027 tax year figures on our SARS tax tables 2027 page.
How to Register and Pay Provisional Tax
- Log in to SARS eFiling. If you do not have a profile yet, follow our SARS eFiling registration steps first.
- Go to your tax types and tick Provisional Tax (IRP6) next to your income tax number, then register.
- Before each due date, request the IRP6 return for the right period. For the 2027 tax year, choose the period that ends in February 2027.
- Enter your estimated taxable income for the whole year, not only the months that have passed. eFiling works out the tax.
- Subtract the PAYE your employer already deducted, so you do not pay twice.
- Submit the IRP6 and pay by the due date, using the payment reference SARS gives you.
- Keep a copy of the return, your proof of payment and how you worked out your estimate.
Submit the IRP6 even if you expect no tax for that period. SARS says that if your final provisional tax return is not submitted within four months after the end of the tax year, it treats your estimate as nil, which can lead to a penalty.
Provisional Tax Penalties Explained
There are two main penalties, and interest can be added on top of them.
| Penalty | When it applies | How much |
|---|---|---|
| Late payment penalty | You pay less than you should by the due date | 10% of the amount paid late |
| Underestimation penalty | Your second estimate was too low compared with your real taxable income | 20% of the shortfall |
Under the current rules, the underestimation test depends on your real taxable income for the year:
- R1 million or less: your second estimate must reach 90% of your real taxable income, or your “basic amount”, whichever is lower.
- More than R1 million: your second estimate must reach at least 80% of your real taxable income. The basic amount does not help you.
If your estimate falls short, the penalty is 20% of the gap between the tax on the required amount and the PAYE and provisional tax you paid for the year. If you were also charged the 10% late payment penalty, it is subtracted from the underestimation penalty, so you do not pay both in full.
SARS can waive a penalty in some cases, for example a first offence where you had a good reason and have fixed the problem.
What Is the Basic Amount?
The basic amount is, broadly, your taxable income in the last year SARS assessed, without certain capital gains and lump sums. SARS must have issued that assessment at least 14 days before you submit your IRP6.
If that assessed year ended more than 18 months before your estimate, the basic amount goes up by 8% for each year.
The basic amount is useful because you already know it. You do not have to guess how much you will earn this year to stay safe from the underestimation penalty.
The Proposed R1.8 Million Change
On 21 October 2026, the Minister of Finance tabled three tax bills in the National Assembly, on the same day as the Medium Term Budget Policy Statement. One of them is the Tax Administration Laws Amendment Bill, 2026 (Bill B33 of 2026). It proposes two changes to provisional tax.
| Current rule | Proposed rule | |
|---|---|---|
| Income limit for the 90% or basic amount test | R1 million | R1.8 million |
| Above the limit | Estimate must reach 80% of real taxable income | Same 80% test, but only above R1.8 million |
| Late second payment | A correct estimate protects you from the underestimation penalty, even if you pay late | If the second payment is not paid in full within one month of the due date, your estimate is treated as only the amount you actually paid |
Change 1: A higher threshold
The new figure takes account of how the income tax brackets have moved since the 2009/10 tax year. Raising it to R1.8 million means more people can rely on their basic amount instead of guessing their income for the current year. The February 2026 Budget announced this change for years of assessment starting on or after 1 March 2026. For individuals, that is the 2027 tax year, which ends on 28 February 2027.
Here is how it would work. Say your real taxable income for the 2027 tax year is R1.5 million and your basic amount is R1.1 million. Under the current rule, your estimate must reach R1.2 million (80%). Under the proposed rule, an estimate of R1.1 million (your basic amount) would be enough, because it is lower than 90% of R1.5 million (R1.35 million).
Change 2: Paying late can cost more
Today, if your estimate is correct but you pay late, you get the 10% late payment penalty. Under the bill, if you have not paid the second payment in full within one month after the due date, SARS would treat your estimate as equal to what you actually paid. That could add an underestimation penalty on top of the late payment penalty.
SARS could still waive this penalty if it is satisfied that you did not pay late on purpose or through negligence. Tax lawyers at Webber Wentzel, writing in Moneyweb on 27 October 2026, advise keeping proof of why a payment was late and what you did to pay it.
When will the changes start?
Not yet. The bill still has to go through Parliament and be signed by the President before it becomes law, and Parliament can change it. The start date for the late payment change will be the one in the final Act. Until then, the current rules apply, and the safest plan is to estimate carefully and pay both amounts on time. For other money news from the same day, see our MTBPS 2026 mini budget summary.
Provisional Tax Questions
When is the second provisional tax payment due for 2027?
For the 2027 tax year, the second payment is due on Friday, 26 February 2027. SARS uses the last business day of February, and 28 February 2027 is a Sunday.
Do I have to pay provisional tax if I have a salary and a side income?
Possibly. If your extra income, such as rent, freelance fees or interest, is above the limits on this page, you are a provisional taxpayer even though you also earn a salary. You subtract the PAYE your employer already paid when you complete your IRP6.
What happens if I miss a provisional tax payment?
SARS can charge a 10% late payment penalty on the amount you did not pay on time, plus interest. If your estimate was also too low, a 20% underestimation penalty can apply. Pay as soon as you can to limit the interest.
Has the provisional tax threshold changed to R1.8 million?
Not yet. The increase from R1 million to R1.8 million is in the Tax Administration Laws Amendment Bill, 2026, which was tabled on 21 October 2026. It is meant to apply from the 2027 tax year for individuals, but only once Parliament passes the bill and the President signs it.
Can I make a third provisional tax payment?
Yes. The third payment is voluntary. For individuals with a February year end it is due by the last business day of September, which is Thursday, 30 September 2027 for the 2027 tax year. It lets you pay any tax you still owe for that year, so less is left to pay when SARS assesses your return.
More: SARS tax tables 2027 | SARS tax number | SARS contact numbers