Provisional Tax for Freelancers and Side Hustles (2026/27): Dates, Maths and Penalties

By Finance Guide Editors Updated October 2026 · 5 sources · 5 min read

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Short answer: if you earn money that isn't a salary, such as freelance fees, side-hustle income or rent, you're probably a provisional taxpayer. You pay tax on that income in advance, in two instalments a year. For the 2026/27 tax year, the next payment is due on Friday, 26 February 2027. Paying late costs a 10% penalty, and underestimating your income can cost a 20% penalty (SARS provisional tax page; SARS Guide for Provisional Tax).

Are you a provisional taxpayer?

SARS's rule is simple: anyone who receives income other than a salary (remuneration) is a provisional taxpayer, unless they're excluded (SARS). There's no separate registration step. You're expected to check whether it applies to you and submit IRP6 returns on eFiling.

You're not a provisional taxpayer if you don't run a business and either:

• your taxable income for 2026/27 is no more than the tax threshold: R99,000 (under 65), R153,250 (65 to 74) or R171,300 (75 and older); or
• your taxable income from interest, foreign dividends, rental income and pay from an unregistered employer is R30,000 or less for the year.

Interest that's already tax-exempt doesn't count: up to R23,800 if you're under 65, or R34,500 if you're 65 or older.

In practice: a salaried employee with a few thousand rand of bank interest isn't provisional. A graphic designer, Uber driver, tutor, consultant or landlord usually is, even if they also have a full-time job.

The 2026/27 payment dates

SARS sets the dates as six months into the tax year (31 August), the last business day of February, and, for the optional third payment, the last business day of September (SARS). 28 February 2027 is a Sunday, so the second payment is due on Friday the 26th. Bank payments can take two to five days to clear, so don't pay on the last day (SARS guide).

Your annual tax return is separate. Provisional taxpayers file their 2026 return (for the year to 28 February 2026) by 22 January 2027 (SARS filing season page). That date is set in Government Notice 7422 of 30 April 2026, which also says anyone who carried on a trade (other than solely as an employee) must file a return (Moonstone).

Worked example: a full-time freelancer

Thandi is a freelance designer under 65. She expects R400,000 taxable income (fees minus business expenses) for 1 March 2026 to 28 February 2027, and has no salary.

1. Tax on R400,000 using the SARS 2026/27 tax table: R79,998 + 31% of (R400,000 − R383,100) = R85,237.
2. Minus the primary rebate of R17,820 = R67,417 for the year.
3. 1st payment (by 31 August 2026): half = R33,708.50.
4. 2nd payment (by 26 February 2027): R67,417 − R33,708.50 = R33,708.50, adjusted if her income estimate has changed.

That's about R5,600 a month to put aside, or roughly 17% of her income.

Worked example: salary plus a side hustle

Sipho earns a R300,000 salary (PAYE deducted) and makes R100,000 from weekend photography. His employer's PAYE only covers the salary. The extra tax on the photography income is the tax on R400,000 minus the tax on R300,000 = about R26,845. That's the amount his provisional payments need to cover, split over the two periods. We calculated this with the 2026/27 table.

Penalties and interest

From the SARS Guide for Provisional Tax:

• Late payment: 10% of the late amount, for the first and second payments.
• Underestimating (taxable income up to R1 million): if your second estimate is less than 90% of your actual taxable income and also less than your "basic amount" (generally your last assessed taxable income), SARS charges 20% of the shortfall in tax. This is reduced by any late-payment penalty you've already been charged.
• Underestimating (over R1 million): a stricter 20% penalty applies if your estimate is below 80% of your actual taxable income.
• No second estimate: if you don't submit the 2nd IRP6, you're treated as having estimated nil income, unless you submit it within four months after the tax year ends.
• Interest: SARS charges interest at the prescribed rate on late payments and underpayments. The guide lists 10.25% a year from 1 December 2025, subject to change. Interest on provisional tax isn't tax-deductible.

The safe-harbour approach: if your estimate is at least 90% of your actual taxable income, or at least your basic amount, you avoid the 20% underestimation penalty (for incomes up to R1 million).

How to set it up so it isn't painful

1. Open a separate savings account for tax, and move 15% to 25% of every client payment into it. Your rate depends on your income (see the example above).
2. Keep records of business expenses. Provisional tax is based on taxable income after expenses. Keep invoices and receipts for at least five years.
3. Submit your IRP6 on eFiling for each period, even if you estimate nil, and pay using the 19-digit payment reference number shown on the return.
4. Update the second estimate in February using your actual income for the year so far. That's the estimate the penalty test uses.
5. Consider the third payment if you realise after February that you underpaid. Paying by 30 September 2027 reduces interest.

FAQ

Who has to pay provisional tax in South Africa?

Anyone who receives income other than a salary, such as freelance, business, rental or investment income, unless their income is below the tax threshold or their non-salary income is R30,000 or less and they don't run a business.

When is provisional tax due for 2026/27?

The first payment was due on 31 August 2026. The second is due on Friday, 26 February 2027. An optional third payment can be made by 30 September 2027.

What is the penalty for late provisional tax?

10% of the amount paid late, plus interest at the prescribed rate.

What is the penalty for underestimating provisional tax?

20% of the tax shortfall if your final estimate is less than 90% of your actual taxable income and less than your basic amount (for taxable income up to R1 million).

I earn a salary and do freelance work on the side. Am I provisional?

Usually yes, if your side income is more than R30,000 a year or you're running a business. Your provisional payments need to cover the tax on the side income that PAYE doesn't cover.

Do I still need to file an annual tax return?

Yes. Provisional payments are credits against the tax on your annual ITR12 return. For the 2026 tax year, provisional taxpayers must file by 22 January 2027.

Changelog: 15 Oct 2026, first published, for the 2027 tax year (1 March 2026 to 28 February 2027).