The IRP6 first provisional tax calculation 2026 requires you to estimate your total taxable income for the 2027 tax year (1 March 2026 to end February 2027), apply the income tax tables to that estimate, halve the annual figure and subtract any employees’ tax already withheld. You then submit the IRP6 on eFiling before the last business day of August 2026.
What is the first provisional period and when is it due?
Provisional tax is not a separate tax. It is a method of paying your income tax in advance, in instalments, so you do not face one large bill at assessment. Provisional taxpayers submit two IRP6 returns each tax year, with an optional third top-up.
The first period IRP6 falls due on the last business day of August. For the 2027 tax year, that first payment lands at the end of August 2026. The second period follows at the last business day of February 2027, and the annual ITR12 for provisional taxpayers is due by 22 January 2027 for the preceding 2026 tax year.
If you earn income that has no PAYE withheld, such as crypto trading gains, freelance fees or rental income, you are likely a provisional taxpayer. Our guide on declaring side hustle income to SARS unpacks who this applies to.
How do I estimate my taxable income for the IRP6 first provisional tax calculation 2026?
The estimate is the heart of the return. For the first period you are projecting your taxable income across the full 2027 tax year, from 1 March 2026 through to end February 2027, even though the year is only part way through.
Start by listing every income stream you expect to earn for the full year:
- Salary or wages, if any, where PAYE has already been deducted
- Freelance, consulting or contractor fees
- Net rental income after allowable expenses
- Crypto disposals, whether treated as revenue or capital
- Interest, dividends and other investment returns
- Business or sole proprietor profit
From your gross figures, subtract the deductions you are entitled to claim, such as retirement annuity contributions and business expenses. What remains is your estimated taxable income. Because half the year is still ahead, you are forecasting; use your actual results to date and a reasonable projection for the months remaining.
Crypto earners face a particular challenge here. Exchanges in South Africa do not issue the tax certificates you receive from banks, so you must reconstruct your own records. We explain why in our piece on IT3(b) and IT3(c) forms and crypto platforms.
How is the actual provisional tax amount worked out?
Once you have an estimated taxable income for the year, the calculation follows a set sequence. eFiling performs most of this automatically once you enter your estimate, but you should understand each step so you can sense-check the result.
- Apply the individual income tax tables to your estimated annual taxable income to get the annual tax before rebates.
- Subtract the rebates you qualify for to arrive at your annual tax liability.
- Halve that annual figure, because the first period covers only the first six months.
- Subtract any employees’ tax (PAYE) already withheld for the period and any first period foreign tax credits.
The figure that remains is your first provisional payment. If you have a salaried job where PAYE covers most of your tax, your provisional payment on the additional income may be modest. If all your income is untaxed, the payment can be substantial, so budget for it well before the deadline.
What is the basic amount and when can I use it?
SARS allows a fallback figure called the basic amount. This is drawn from your most recently assessed taxable income, adjusted upward for older assessments to account for the passage of time. Where your assessment is not yet finalised, the basic amount gives you a benchmark you can rely on for the first period.
For the first provisional period, taxpayers below a certain taxable income level may use the basic amount without the risk of an under-estimation penalty. Higher earners are held to a stricter accuracy standard on their estimate, so a rough guess carries more risk. Because the exact thresholds and accuracy rules change, it is worth confirming your position with a professional before you settle on a figure.
If you have never filed a provisional return and have no prior assessment to draw a basic amount from, your genuine estimate becomes the only reference. Keep the workings that support it.
How do I actually submit the IRP6 on eFiling?
The IRP6 lives inside your SARS eFiling profile. If you are already registered for eFiling to file your ITR12, provisional tax is added under the returns menu.
- Log in and open the Returns section, then select Provisional Tax (IRP6).
- Request the return for the correct period. For this deadline you want the 2027 tax year, first period.
- Enter your estimated annual taxable income. eFiling calculates the tax, applies rebates and shows the amount due for the period.
- Review the calculated figure, then file the return.
- Make payment via eFiling, EFT using the payment reference generated, or your bank’s public sector or SARS payment option.
Filing the return and paying the amount are two separate actions. A filed IRP6 with no payment still leaves you with an outstanding balance and interest. Aim to file and pay a few days before the last business day of August to allow for banking delays.
Before you start, gather your supporting records. Our checklist of documents needed to file a tax return in South Africa is a useful starting point for provisional estimates too.
What happens if my estimate is wrong or I file late?
Provisional tax is forgiving of honest estimates within reason, but there are consequences for getting it materially wrong or missing the deadline.
If you underestimate your income significantly, SARS may raise an under-estimation penalty at the second period or on final assessment, alongside interest on the shortfall. Over-estimating ties up your cash unnecessarily, though you recover the excess at assessment. The second period return exists partly to correct a first period estimate, so a first period figure is not your last word.
Late filing and late payment attract their own penalties and interest. SARS administrative penalties for outstanding returns recur monthly and scale with taxable income, which means delay compounds quickly. SARS also receives third-party data from banks and, increasingly, from crypto exchanges, and participates in international information-sharing frameworks, so undeclared income is harder to hide than many assume. Understating income is one of the red flags that trigger SARS audits.
How can I reduce my provisional tax legitimately?
Your provisional payment is driven by your taxable income, so any deduction that lowers taxable income lowers the payment. Retirement annuity contributions are one of the more accessible levers; see our overview of the tax benefits of retirement annuities.
Make sure you are claiming all legitimate business and rental expenses in your estimate, since an inflated income figure means an inflated payment. For crypto traders, realised losses may offset gains depending on how your activity is treated, a point we cover in our article on the impact of crypto losses on your tax return. The goal is an accurate estimate, not an artificially high or low one.
Frequently Asked Questions
Do I need to submit an IRP6 if I only have a salary?
Usually not. If your only income is a salary with PAYE deducted by your employer, you are generally not a provisional taxpayer. You become one when you earn meaningful income that has no tax withheld at source, such as rental, freelance, business or crypto income. If you are unsure, confirm your status before the August deadline rather than after.
What if I registered as a provisional taxpayer partway through the year?
You still estimate your taxable income for the full 2027 tax year, from 1 March 2026 to end February 2027, and file the first period IRP6 by the last business day of August 2026. Include income earned before you registered. The provisional system looks at your annual position, not only the months since registration, so your projection should cover the whole year.
Can I use my prior year assessment as my estimate?
Your most recently assessed taxable income forms the basic amount, which SARS adjusts upward for older assessments. Many taxpayers below a certain income level use the basic amount for the first period without under-estimation penalty risk. Higher earners face stricter accuracy rules, so relying purely on a prior year figure can be risky. Confirm which approach suits your circumstances with a professional.
How do crypto traders estimate provisional tax without tax certificates?
South African exchanges do not issue IT3(b) or IT3(c) certificates, so you reconstruct your position from your own transaction records. Export your trade history, calculate proceeds and base cost for each disposal and total your realised gains or losses for the year. SARS receives crypto exchange data, so accuracy matters. Keeping clean records throughout the year makes each provisional estimate far easier.
What is the difference between the first and second provisional returns?
The first period return, due end of August, covers the first six months and uses your best forecast of annual income. The second period return, due end of February, covers the full year and lets you correct the earlier estimate. The second period is where accuracy is judged most strictly, so treat the first period as a reasonable interim payment.
Speak to us before the August deadline
Provisional tax estimates carry real consequences, and every taxpayer’s mix of salary, rental, freelance and crypto income is different. If you would like help calculating and filing your first period IRP6 correctly, book a call so we can look at your specific circumstances. You are also welcome to email info@chconsulting.co.za with any questions.