Home / Freelancer tax set-aside
How much tax to set aside as a freelancer
When you work for yourself, nobody deducts tax from what you earn. You pay it to SARS yourself, in advance, through provisional tax. Putting a share of every payment aside means the money is there when it is due.
R3 381.00to set aside each month
- Estimated taxable income
- R300 000.00
- Estimated tax for the year
- R40 572.00
- First IRP6 payment, end of August
- R20 286.00
- Second IRP6 payment, end of February
- R20 286.00
- Share of taxable income
- 13.5%
Tax tables from SARS (2026/27), checked October 2026. Source: SARS, Provisional Tax.
An estimate, not tax advice. It uses the SARS 2026/27 tables and rebates only, with no other income, PAYE, medical credits or retirement deductions.
Are you a provisional taxpayer?
SARS says anyone who receives income other than remuneration (a salary from an employer) is a provisional taxpayer. If you invoice clients as a freelancer, consultant or sole proprietor, that is you, even if you also have a job. There is no separate registration: you add provisional tax to your eFiling profile and submit an IRP6 return for each payment.
Provisional tax is not an extra tax. It is your income tax for the year, paid in advance in instalments, so you do not end up with one large bill on assessment.
The payment dates
For a tax year that starts on 1 March, SARS sets these dates:
| Payment | Due | What you pay |
|---|---|---|
| First | 31 August, or the last business day before it | Half the estimated tax for the year, less any PAYE for the first 6 months |
| Second | The last business day of February | The full estimated tax for the year, less PAYE and the first payment |
| Third (optional) | The last business day of September, after the year ends | A top-up if you paid too little, before SARS assesses you |
Paying too little, or estimating your income too low, can lead to penalties and interest, so it is worth being realistic, especially for the second payment, when most of the year is known. You still submit your annual income tax return (ITR12) as well; the provisional payments are set off against the tax on assessment.
How the set-aside is worked out
- Estimate your income for the tax year, 1 March to the end of February.
- Subtract business expenses: the costs of earning that income, such as equipment, software, data, travel for work and a share of home office costs where SARS rules allow.
- Work out income tax on what is left with the SARS 2026/27 tables, less the rebate for your age (R17 820 if you are under 65).
- Divide by 12 for a monthly amount to put aside, or set aside the same share of every payment you receive.
For example, R360 000 income less R60 000 expenses leaves R300 000 taxable. Tax on that is R40 572.00 for the year, or 13.5%. Setting aside R3 381.00 a month covers both payments: R20 286.00 at the end of August and R20 286.00 at the end of February.
| Taxable income for the year | Estimated tax | Set aside each month | Share |
|---|---|---|---|
| R150 000 | R9 180 | R765 | 6.1% |
| R250 000 | R27 572 | R2 298 | 11.0% |
| R400 000 | R67 417 | R5 618 | 16.9% |
| R600 000 | R132 907 | R11 076 | 22.2% |
| R900 000 | R247 293 | R20 608 | 27.5% |
Because tax rates rise with income, the share also rises. If your income is uneven, a simple habit is to move a fixed percentage of every client payment into a separate savings account the day it arrives, using the share from the calculator, and round it up a little.
What this estimate leaves out
- Any salary you also earn: PAYE already paid on it reduces what you owe, but the extra income pushes the rest into a higher bracket.
- Medical aid tax credits and retirement annuity contributions, which lower your tax.
- VAT, which is a separate tax with its own registration and returns.
- Interest, rental income and capital gains, which may add to your taxable income.
For a figure you can file, work it through with a registered tax practitioner, or use the SARS guide on SARS, Provisional Tax.
General information, not tax advice.