So, it’s that time of year again and SARS wants a payment. But how much are you actually supposed to pay, and how do you even begin to figure that out? That’s where this guide comes in. We’ll walk you through the full process of estimating your income, calculating what you owe, and understanding what it all means, step by step.

Quick tip: Don’t confuse your total income with your taxable income. You’re only taxed on profit, what’s left after you subtract business expenses.

It’s the amount left after you subtract your business expenses, the actual costs you had to pay to earn that income. Think fuel for deliveries, data for client work, or tools and equipment you use to get the job done.
These are called tax-deductible expenses, and SARS allows them to be deducted before your tax is calculated.

And NO! Sadly, your Friday night sushi or that new "office" coffee machine for the home doesn’t count as a business expense. SARS wants real business expenses. 

So let's get into it.

Step 1: Estimate your total income for the full tax year minus your business expenses.

SARS doesn’t expect perfection here, they just want a realistic estimate of how much money you’re going to make for the whole tax year, from 1 March 2025 to 28 February 2026.

This includes:

• Your salary (if you have one)
• Freelance or side hustle income
• Rental income
• Investment income (like interest or dividends)
• Income from a business you run
• Basically, anything you’ll be taxed on

Remember to deduct all relevant business expenses from the above income.

If you submitted a tax return in the last year and your income hasn’t changed much, you can use the same number from your most recent assessment. This is called your “basic amount.” But make sure it’s still accurate for this year SARS expects you to be honest.

If that number is more than 18 months old, SARS requires you to bump it up by 8 percent per year to keep things current.
 
Step 2: Work out your tax for the year

Now that you have your estimated income, you need to work out how much tax you’d owe on it for the full year.

Use the SARS tax tables or TaxTim’s free tax calculator to help you here. You’ll apply the correct tax rates to your income, then subtract the rebates you qualify for.

Everyone gets a primary rebate. If you’re 65 or older, you’ll get an extra one. This rebate reduces the amount of tax you need to pay for the year.
 
Step 3: Split it in half

Since this is your first provisional tax payment, SARS only wants you to pay half of your total tax for the year right now.

So take the number you got in Step 2 and divide it by two. This is your base payment for this first IRP6 return.
 
Step 4: Subtract tax already paid

If you have a job, your employer has probably been deducting tax each month (called PAYE). You don’t need to pay this again.

Take the total PAYE you’ve paid for the first six months of the tax year (March to August) and subtract it from the amount you just calculated.

If you’ve also paid any foreign tax, you can subtract that too.
 
Step 5: What’s left is what you owe now

After subtracting what’s already been paid, the number you’re left with is your first provisional tax payment, the amount you need to pay to SARS by 29 August 2025.

If the number is negative or very small, it may mean you don’t owe anything right now. But don’t skip the IRP6, you still need to submit it, even if your payment is zero.
 
A quick example

Let’s say your estimated income for the 2025 tax year is R220,000.

Tax on that income: R39,600

Subtract your primary rebate: R17,235

Note on “Primary rebate” is a standard tax discount that every taxpayer gets automatically. It reduces the amount of tax you need to pay for the year, no matter how much you earn. You don’t need to apply for it, SARS applies it for you.

Tax payable for the year: R22,365 (you can check this by using TaxTim's Salary Calculator)

Half-year tax: R11,182.50

PAYE already paid in the first 6 months: R10,000

Amount now due for your first IRP6 payment: R1,182.50
 
Why it matters

Submitting and paying on time helps you avoid:

• A 10 percent penalty for late payment
• Daily interest on any unpaid amount
• A possible 20 percent underestimation penalty if your income guess is way off.

SARS doesn’t want to punish you, they just want taxpayers to stay up to date and avoid big bills at the end of the year.
 
Feeling unsure? Let Tim help

If this all sounds like a bit much, don’t worry. TaxTim can guide you step by step through the IRP6 process. We’ll ask simple questions, help you work out your estimated income, calculate the correct payment, and submit everything directly to SARS with confidence. Quickly. Easily. Correctly.