Turnover Tax Calculator South Africa 2026/2027
Calculate your Turnover Tax instantly, and check whether your business actually qualifies — using the official SARS 2026/2027 rates and exclusion rules.
Step 1 — Qualification Check
Is your annual qualifying turnover R2.3 million or less?
Are all shares/shareholding held by natural persons?
Is 20% or less of your receipts from a professional service?
Are you not a personal service provider or labour broker?
If a company: Is your financial year-end 28/29 February?
If you answer "No" to any of these, you do not currently qualify for Turnover Tax.
Step 2 — Turnover
You do not currently qualify for Turnover Tax.
See the full exclusion criteria explained →
Annual Turnover Tax payable
R 0
Effective tax rate on total turnover
0.00%
Note: Turnover Tax is calculated on revenue, not profit. For reference, this is significantly lower than what most micro businesses would pay under standard income tax.
This calculator provides an estimate only. Confirm your exact qualification and tax liability using SARS's own quick test, or with a registered tax practitioner, before registering or relying on this figure.
Who qualifies for Turnover Tax?
Entity types that may qualify:
- Individuals (sole proprietors)
- Partnerships
- Close corporations
- Companies
- Co-operatives
Source: SARS — Turnover Tax page
Your business must have a qualifying annual turnover of R2.3 million or less (increased from R1 million, effective 1 April 2026).
Even with qualifying turnover, you are excluded if ANY of the following apply:
| # | Exclusion criterion |
|---|---|
| 1 | Shares are held in an unlisted company |
| 2 | More than 20% of receipts are derived from rendering a professional service |
| 3 | The taxpayer is a personal service provider or a labour broker |
| 4 | A company's financial year-end is not 28/29 February |
| 5 | Any of a company's shareholders is not a natural person |
Source: SARS — FAQ: Who does not qualify to be registered for Turnover Tax?
Why these exclusions exist: Turnover Tax is designed for genuinely small, owner-operated businesses with simple structures. The exclusions prevent larger, more complex, or professional-services-driven entities — which generally have more substantial deductible expenses and more sophisticated accounting capacity — from accessing a simplified, low-rate system designed for micro businesses.
You can still register for VAT: A business registered for Turnover Tax may elect to remain registered for VAT (since 1 March 2012) — Turnover Tax does not automatically exclude you from the VAT system.
Source: SARS — FAQ: Can I be registered for both Turnover Tax and VAT?
Source: SARS — FAQ: Can I be registered for both Turnover Tax and VAT?
How Turnover Tax is calculated — worked examples
| Annual turnover | Rate |
|---|---|
| R0 – R600,000 | 0% |
| R600,001 – R950,000 | 1% of the amount above R600,000 |
| R950,001 – R1,400,000 | R3,500 + 2% of the amount above R950,000 |
| R1,400,001 – R2,300,000 | R12,500 + 3% of the amount above R1,400,000 |
Source: SARS — Turnover Tax page, confirmed for the year of assessment ending between 1 March 2026 and 28 February 2027
Worked example 1 — R500,000 annual turnover:
- Falls entirely within the R0–R600,000 tax-free band
- Turnover Tax payable: R0
Worked example 2 — R800,000 annual turnover:
- Falls within the R600,001–R950,000 band
- 1% × (R800,000 − R600,000) = 1% × R200,000 = R2,000
- Effective rate on total turnover: R2,000 ÷ R800,000 ≈ 0.25%
Worked example 3 — R1,200,000 annual turnover:
- Falls within the R950,001–R1,400,000 band
- R3,500 + 2% × (R1,200,000 − R950,000) = R3,500 + 2% × R250,000 = R3,500 + R5,000 = R8,500
- Effective rate on total turnover: R8,500 ÷ R1,200,000 ≈ 0.71%
Worked example 4 — R2,000,000 annual turnover:
- Falls within the R1,400,001–R2,300,000 band
- R12,500 + 3% × (R2,000,000 − R1,400,000) = R12,500 + 3% × R600,000 = R12,500 + R18,000 = R30,500
- Effective rate on total turnover: R30,500 ÷ R2,000,000 ≈ 1.53%
A reminder — turnover, not profit: All four examples above are calculated on gross turnover, not on profit after expenses. This is precisely why Turnover Tax rates are kept deliberately low — they are designed to roughly approximate what a micro business with typical expense levels would otherwise pay under standard income tax on its actual profit, without requiring the business to keep detailed expense records.
Source: SARS — Turnover Tax page
Source: SARS — Turnover Tax page
Turnover Tax payment dates and forms
| Payment | When | Form |
|---|---|---|
| 1st interim payment | Last business day of August | TT02 (Payment Advice) |
| 2nd interim payment | Last business day of February | TT02 (Payment Advice) |
| Final payment | After the annual return is submitted, between 1 July and 31 January of the following year | TT03 (Turnover Tax Return) |
Source: SARS — Turnover Tax page
If a payment date falls on a weekend or public holiday: Payment must be made no later than the last business day before that Saturday, Sunday, or public holiday.
The forms you'll use:
TT01— Application to register for Turnover Tax (online via SOQS, or manually)TT02— Payment Advice for interim payments (your own record — do not submit this to SARS)TT03— Annual Turnover Tax Return
Reduced record-keeping: One of Turnover Tax's key advantages is simplified record-keeping. You must keep: (1) records of all amounts received; (2) records of dividends declared; and (3) a list of each asset costing more than R10,000, and each liability exceeding R10,000, at year-end.
Source: SARS — Turnover Tax page
Source: SARS — Turnover Tax page
How to register for Turnover Tax →
Frequently Asked Questions
R2.3 million per year, increased from R1 million, effective 1 April 2026. Businesses with qualifying annual turnover above this amount cannot register for Turnover Tax.
R0 to R600,000: 0%; R600,001 to R950,000: 1% of the amount above R600,000; R950,001 to R1,400,000: R3,500 plus 2% of the amount above R950,000; R1,400,001 to R2,300,000: R12,500 plus 3% of the amount above R1,400,000.
A natural person or company is excluded if: shares are held in an unlisted company; more than 20% of receipts come from professional services; the taxpayer is a personal service provider or labour broker; a company's financial year-end is not 28/29 February; or any shareholder is not a natural person.
Turnover Tax is calculated on gross turnover (total business receipts), not on profit after expenses. The rates are kept low to approximate what a typical micro business would otherwise pay on actual profit.
Yes. A business registered for Turnover Tax may elect to remain registered for VAT. Turnover Tax replaces income tax, but does not automatically exclude a business from the VAT system.
There are two interim payments made using the TT02 Payment Advice (end of August and February), followed by a final payment after submitting the annual TT03 Turnover Tax Return.
Related guides and tools
← Back to: Business Tax — Complete GuideSources:
- SARS — Turnover Tax — sars.gov.za/types-of-tax/turnover-tax/ (official rate table; payment dates; forms; record-keeping requirements)
- SARS — FAQ: Who does not qualify to be registered for Turnover Tax? — sars.gov.za/faq/faq-who-does-not-qualify-to-be-registered-for-turnover-tax/ (all 5 exclusion criteria)
- SARS — FAQ: Can I be registered for both the Turnover Tax and VAT? — sars.gov.za/faq/faq-can-i-be-registered-for-both-the-turnover-tax-and-vat/
- SARS — FAQ: What is taxable turnover for Turnover Tax purposes? — sars.gov.za/faq/faq-what-is-taxable-turnover-for-turnover-tax-purposes/
- SARS — Small Businesses and Taxpayers — sars.gov.za/businesses-and-employers/small-businesses-taxpayers/ (threshold increase confirmation, effective 1 April 2026)
- SARS — Tax Guide for Micro Businesses (Issue 3, LAPD-Legal-Pub-Guide-TT01) — sars.gov.za
- Sixth Schedule to the Income Tax Act 58 of 1962 (Turnover Tax legislative basis)
Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify the turnover threshold and rate bands.