Estimate how much income tax you will owe SARS as a freelancer, contractor, or solo business owner in South Africa, and how much to set aside each month so tax season never catches you off guard. The calculator uses official SARS rates for the 2026/27 tax year (1 March 2026 to 28 February 2027).
How Provisional Tax Works for the Self-Employed
Self-employed people don't have an employer deducting PAYE every month. Instead, you pay provisional tax: two payments a year, based on your own estimate of the year's taxable profit.
- First payment (due 31 August): at least half of your estimated tax for the full year.
- Second payment (due the last working day of February): the balance of what you owe for the year.
- Third top-up payment (voluntary, due end of September): if you still owe more than R10,000 after the second payment, settling the balance by the end of September avoids penalty interest.
Two things trip people up. First, SARS expects your estimate to be at least 80% of your actual bill — underestimate badly and a 20% underestimation penalty can be added, so estimate conservatively or use last year's tax (your "basic amount") as the baseline. Second, you must request and submit your IRP6 return yourself on eFiling — SARS won't chase you before the deadline, but it will charge interest after it.
How Much Should You Set Aside Each Month?
The common rule of thumb — 25% to 30% of profit — is deliberately generous. Your actual number is your effective tax rate, which the calculator shows and which is almost always lower than your top marginal rate, because your first rands are taxed at 18% and the rates only climb from there. If your income is lumpy or unpredictable, add a 5% to 10% buffer on top of the calculated figure.
The practical system: open a separate savings account or money market fund purely for tax, transfer the calculated amount every time a client pays you, and never touch it. Money you can't see is money you won't spend.
Don't Forget VAT and Retirement
If your turnover tops R1 million in any 12-month period, VAT registration becomes compulsory — and VAT (15%) is collected on top of your prices and paid over to SARS separately, so budget for it apart from income tax. The calculator above will warn you if your turnover crosses the threshold.
Contributions to a retirement annuity are tax-deductible up to 27.5% of your income, capped at R430,000 per year, which can meaningfully cut your tax bill — see our guide to pension funds, provident funds, and retirement annuities for how the deduction works.
Estimates use the 2026/27 SARS tax tables (1 March 2026 to 28 February 2027) and cover income tax only. Medical scheme credits, capital gains tax, and company tax (if you trade through a company) are not included. This is a rough guide, not tax advice — confirm your numbers with a registered tax practitioner. Rates source: SARS tax tables.