Provisional Tax Calculator South Africa 2026/2027
Calculate your provisional tax payment for the 1st or 2nd period, and check whether your estimate risks a SARS underestimation penalty.
1st period
Due 31 August — estimate full year
2nd period
Due 28/29 February — final true-up
Optional 3rd period
Due 30 September — voluntary top-up
Your Details
R
Your Estimate Result
Annual tax on your estimated income
R0
1st period payment due
R0
Low risk
Your estimate is at or above 90% of your most recent assessed income.
*This is a simplified indicator based on SARS's safe-harbour rules — it does not replace a full review of your actual circumstances. Source: SARS — Guide to Provisional Tax; SARS Budget 2026 FAQ
This calculator provides an estimate only and does not constitute tax advice. Your actual provisional tax liability depends on your complete financial position. Consult a registered tax practitioner if you are unsure about your estimate.
How provisional tax works
Provisional tax is not an additional tax — it is a system for prepaying your normal income tax in instalments during the year, rather than paying one large amount after assessment. Every provisional tax payment is credited against your final tax liability when you file your ITR12 or ITR14.
Source: SARS — Guide to Provisional Tax
Source: SARS — Guide to Provisional Tax
You are a provisional taxpayer if you earn income that is not remuneration — for example, rental income, freelance or business income, or investment income — or remuneration from an employer who is not registered for PAYE. There is no separate registration process; the responsibility is on you to determine whether you qualify and to submit IRP6 returns accordingly.
| Period | Deadline | Purpose |
|---|---|---|
| 1st period | Within 6 months of year start (31 August for a standard year) | An initial estimate, often based on your last assessed income (the "basic amount") |
| 2nd period | Last day of the tax year (28/29 February) | A final, true-up estimate covering your full actual or best-known income for the year |
| 3rd period (optional) | About 6 months after year-end (30 September) | A voluntary top-up payment to reduce interest if you know you underpaid |
Important: You must submit an IRP6 return even if the amount payable for the period is nil.
The basic amount — a safe-harbour estimate for your 1st period
For many taxpayers, the simplest way to estimate the 1st-period provisional tax payment is to use the basic amount: your taxable income as per your most recently assessed SARS tax return (ITA34). Using the basic amount as your estimate is generally treated as a safe, defensible figure.
Source: SARS — Interpretation Note 1 (Issue 3) — Provisional Tax Estimates
Source: SARS — Interpretation Note 1 (Issue 3) — Provisional Tax Estimates
If your most recent assessment is not for the immediately preceding tax year (for example, because SARS has not yet finalised your most recent return), the basic amount must be increased by 8% for every year that has elapsed since that assessment, up to the year for which you're now estimating.
Example: If your most recent assessment is from two years before the current estimate, your basic amount must be increased by 8% × 2 = 16% above the assessed figure.
Why this matters: Using an outdated basic amount without the required 8% escalation can result in your 1st-period estimate being treated as understated, which is relevant if your final assessed income turns out to be significantly higher than expected.
Full guide — provisional tax →
The underestimation penalty — how it works and how to avoid it
If you underestimate your provisional tax (particularly in the 2nd period), SARS may impose a penalty. The safe-harbour threshold depends on your income level:
| Your final taxable income | The rule | Penalty if breached |
|---|---|---|
| R1 million or less | Your 2nd-period estimate must be at least 90% of your actual final taxable income, or at least equal to the applicable basic amount | 20% of the tax shortfall |
| Above R1 million | Your 2nd-period estimate must be at least 80% of your actual final taxable income | 20% of the tax shortfall |
Source: SARS — Guide to Provisional Tax; SARS Budget 2026 FAQ
The penalty is 20% of the difference between:
- The tax payable on the required percentage (90% or 80%) of your actual final taxable income, and
- The tax actually paid based on the estimate you submitted
- The tax payable on the required percentage (90% or 80%) of your actual final taxable income, and
- The tax actually paid based on the estimate you submitted
Late payment penalty is separate: A 10% penalty applies separately for simply paying late, regardless of whether the amount itself was accurate. If both penalties would otherwise apply to the same shortfall, the underestimation penalty is reduced by any late-payment penalty already charged.
Interest also applies: Separately from any penalty, interest accrues on underpaid provisional tax at 10.25% per annum (effective from 2 March 2026). If you overpaid and are due a refund, SARS pays interest on the refund at 6.25% per annum.
The Commissioner may waive the penalty: If you can show that your underestimate was not made with the intent to evade or postpone paying tax, SARS's Commissioner has discretion to remit all or part of the underestimation penalty.
Practical takeaway: If your income is genuinely uncertain, it is generally safer to estimate slightly higher than you expect, rather than risk a 20% penalty on a significant shortfall — particularly if your taxable income may exceed R1 million, where the safe-harbour margin is tighter (80% rather than 90%).
Frequently Asked Questions
How do I calculate my provisional tax payment?
Estimate your total annual taxable income, calculate the tax using current brackets, and subtract your rebate. Pay half of this estimate by 31 August for the 1st period. For the 2nd period, pay the full estimated tax, less any previous payments, by the end of February.
What is the basic amount in provisional tax?
The basic amount is your taxable income from your most recently assessed tax return, often used as a safe-harbour estimate for the 1st period. It must be increased by 8% for every year elapsed since that assessment if it is not from the immediately preceding tax year.
What happens if I underestimate my provisional tax?
For taxable income up to R1 million, a 20% penalty applies if your 2nd-period estimate is below 90% of actual taxable income and the basic amount. Above R1 million, the threshold is 80%. The penalty is 20% of the tax shortfall.
Can SARS waive the underestimation penalty?
Yes. SARS may waive all or part of the penalty if the underestimation was not intended to evade or postpone tax payment.
What is the interest rate on underpaid or overpaid provisional tax?
From 2 March 2026, SARS charges 10.25% annual interest on underpaid provisional tax, and pays 6.25% on refunds.
Do I need to submit provisional tax if my estimate is zero?
Yes. You must submit an IRP6 return even if your estimated tax payable is nil.
Related guides and tools
Related calculators
Provisional tax guides
Sources:
- SARS — Guide to Provisional Tax — sars.gov.za/guide-to-provisional-tax/ (period deadlines; underestimation penalty thresholds; penalty calculation; Commissioner remission)
- SARS — Guide for Provisional Tax (GEN-PT-01-G01) — sars.gov.za (company provisional tax threshold)
- SARS — Interpretation Note 1 (Issue 3) — Provisional Tax Estimates — sars.gov.za (basic amount method; 8% annual escalation rule)
- SARS — Budget 2026 FAQ — sars.gov.za (income tax brackets and rebates; underestimation penalty confirmation for income >R1 million; interest rates effective 2 March 2026)
- Income Tax Act 58 of 1962 — Fourth Schedule, paragraphs 17–27 (provisional tax obligations and penalties)
Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify brackets, rebates, and interest rates.