Provisional tax for freelancers in South Africa, simply explained

This is general information. It isn't tax advice. If your situation is complicated, speak to a registered tax practitioner.

If you earn money that nobody takes tax off before it reaches you, SARS expects you to pay some of that tax during the year. That system is called provisional tax. It is income tax paid in advance, in instalments, so you don't end up with one big bill at the end.

Who counts as a provisional taxpayer?

SARS says anyone who receives income other than a salary is a provisional taxpayer. That covers freelance fees, platform payouts, content income and most side hustle money.

You are excluded if you don't run a business and either:

• your total taxable income for the year stays at or below the tax threshold (R99,000 if you are under 65, for 2026/27), or
• your income from interest, foreign dividends and rent stays at or below R30,000.

Interest under R23,800 (under 65) is exempt and doesn't make you a provisional taxpayer by itself.

There is no separate registration any more. It is up to you to decide whether you are liable, then request and submit an IRP6 return on SARS eFiling.

The deadlines for 2026/27

For a tax year that starts on 1 March:

1. First payment: by 31 August (or the last business day before it). Roughly half of the year's estimated tax.
2. Second payment: by the last business day of February. The rest of the estimated tax for the year.
3. Third payment (optional): by the last business day of September, to top up if you underestimated.

Paying too little, or estimating your income too low, can lead to penalties and interest.

A worked example

Say Thandi has no salary and expects to earn R180,000 from freelance design this tax year, after business costs.

• Tax on R180,000 at 18% = R32,400
• Less the primary rebate of R17,820 = R14,580 for the year
• First payment (half) = R7,290 by 31 August
• Second payment = R14,580 less R7,290 = R7,290 by the end of February

If she also earns a salary, the PAYE her employer deducts comes off these amounts, and her salary and side income are added together to find the right tax bracket.

Make it easier on yourself

• Put a slice of every payment aside. Our calculator shows roughly how much tax your side income adds, so you know what to set aside.
• Keep records from day one. Invoices, payout statements and receipts for genuine costs like data and software.
• Count dollars in rand. Tax residents are taxed on worldwide income. Note the rand amount that lands in your account. Our guide to getting paid from overseas covers the payout side.

For the bigger picture, read side income tax in South Africa. If you are still deciding what to do, the free test ranks options against your skills, money and time.

Questions people ask

Do I have to pay provisional tax on a side hustle?

Usually yes, if the side hustle is a business and your total taxable income is above the threshold. SARS treats any non-salary income as making you a provisional taxpayer unless an exclusion applies.

When are provisional tax payments due?

By 31 August and by the last business day of February, with an optional third payment by the last business day of September.

What happens if I underestimate?

SARS can charge penalties and interest when payments are too low or the estimate is too low. The optional third payment lets you top up before your assessment.