Do I need to register for tax if I have a side hustle in South Africa?
Short answer, as of 27 October 2026: yes. If you earn money from a side hustle, SARS treats you as carrying on a trade, and its 2026 notice on who must file says every resident who carried on any trade, other than solely as an employee, must submit a tax return, however small the amount (Government Gazette 54598, 30 April 2026). That means you need an income tax number, which most employees already have.
Filing is not the same as paying, though. Whether you actually owe tax depends on your total taxable income for the year. For the 2027 tax year (1 March 2026 to 28 February 2027), if you're under 65 and your salary plus side-hustle profit is R99,000 or less, the tax is zero (SARS). Above that, the profit is taxed at your marginal rate, and you pay it in advance through provisional tax.
Here's how it works, with the dates that matter now and three worked examples.
The three things a side hustle triggers
| What | When it applies | What you do |
|---|---|---|
| Income tax return (ITR12) | Any trade income at all | Declare your side-hustle income and expenses every year |
| Provisional tax (IRP6) | You earn income that isn't a salary | Estimate your income and pay twice a year, in August and February |
| VAT | Taxable sales above R2.3 million in 12 months | Register; voluntary from R120,000 |
Provisional tax, in plain English
Your employer takes PAYE off your salary every month. Nobody does that for your side hustle, so SARS wants you to estimate the year's tax and pay it in two instalments. That's provisional tax. It isn't an extra tax, just income tax paid in advance (SARS).
- Who: anyone who earns income other than a salary. SARS's exclusion for small amounts only covers people who don't carry on a business, so on SARS's own wording a side hustle brings you in, even a small one.
- No separate registration: SARS says there's no registration process for provisional tax. You request an IRP6 return on eFiling and submit it (SARS FAQ).
- When: first payment by the last business day of August, second by the last business day of February, and an optional third payment by 30 September (SARS SMME Connect, August 2026).
Your deadlines right now
| Deadline | What's due |
|---|---|
| 22 January 2027 | ITR12 for the 2026 tax year (March 2025 to February 2026), if you're a provisional taxpayer (Gazette 54598) |
| Friday 26 February 2027 | Second IRP6 and payment for the 2027 tax year (the last business day of February) |
| 31 August 2027 | First IRP6 for the 2028 tax year |
The 23 October 2026 deadline was for non-provisional taxpayers. If you had side-hustle income in the 2026 tax year, you were a provisional taxpayer for that year, so your deadline is 22 January 2027. Don't leave it for the last week.
Worked examples
These are illustrations with stated assumptions, not real people. They use the 2027 tax tables and the primary rebate of R17,820 only, and ignore medical credits, retirement contributions and other deductions (SARS Budget 2026 tax guide).
Example 1: a salary plus weekend baking
- Salary: R300,000 a year, with PAYE deducted.
- Baking sales R95,000, less ingredients, packaging and gas of R35,000: profit R60,000.
- Taxable income: R360,000.
| Tax | |
|---|---|
| Tax on R360,000: R44,118 + 26% of R114,900, less the R17,820 rebate | R56,172 |
| Tax on the salary alone (R300,000), roughly what PAYE covers | R40,572 |
| Extra tax from the side hustle | R15,600 |
That R15,600 is 26% of the R60,000 profit, because the profit sits in the 26% bracket. Through provisional tax, you'd pay about half (R7,800) in August and the rest in February. Set aside about 26c of every rand of profit as you go, and February won't hurt.
Example 2: a student tutoring part time
- No salary. Tutoring brings in R45,000 profit for the year.
- Tax: 18% of R45,000 is R8,100, which the R17,820 rebate wipes out. Tax owed: R0.
But this student still carried on a trade, so the return is still required, and the IRP6 returns can simply show the low estimate. Filing costs nothing and keeps your tax record clean.
Example 3: a growing online shop
Sales of R400,000 a year, profit of R120,000, no salary. Under normal income tax, the tax on R120,000 is R21,600 less R17,820: R3,780.
This shop might also qualify for turnover tax, a simplified system for micro businesses with turnover of R2.3 million or less since 1 April 2026. It replaces income tax, VAT and provisional tax on the business, and the first R600,000 of taxable turnover is taxed at 0% (SARS turnover tax). On these numbers, turnover tax would be R0.
Turnover tax isn't for everyone. Some businesses are excluded, such as those earning more than 20% from certain professional services, and it changes how your income is reported. Do SARS's quick test and read the rules before choosing it, or ask a registered tax practitioner.
Tax is on profit, so keep your records
You're taxed on income less the expenses you incurred to earn it, not on your sales. Ingredients, stock, data used for the business, a share of transport, platform fees and equipment can reduce the bill, if you can prove them. SARS expects you to keep supporting documents for five years from the date you submit the return (SARS ITR12 guide).
A simple system that works:
- A separate bank account (even a free one) just for the hustle.
- A spreadsheet with four columns: date, what, money in, money out.
- A phone photo of every slip, saved into one folder per month.
What happens if you ignore it
- Late provisional tax payments attract a 10% penalty on the amount paid late.
- Underestimating your income can bring a 20% penalty on the shortfall, under the rules in SARS's guide to provisional tax.
- Interest runs on unpaid tax, and SARS can issue its own estimate if you don't file.
SARS is also watching the digital economy more closely. National Treasury's 2026 Budget Review notes that SARS registered 1.3 million new taxpayers in the first three quarters of 2025/26 and engaged with social media influencers on tax compliance (Budget Review 2026, chapter 4).
When you probably don't need to worry
- Selling your own used things now and then (an old phone, clothes you've outgrown) is generally not a trade. Buying stock to resell, regularly, is.
- Interest on savings below R23,800 a year (under 65) doesn't make you a provisional taxpayer on its own (SARS).
If you're unsure which side of the line you're on, ask SARS or a registered tax practitioner before the deadline, not after.
Your next steps, in order
- Check you have a tax number. Log in to SARS eFiling or the SARS MobiApp. If you've never registered, you register for personal income tax there.
- Add provisional tax to your eFiling profile and request your IRP6.
- Work out your profit so far for this tax year (since 1 March 2026), and estimate the rest to 28 February 2027.
- Submit and pay the IRP6 by Friday 26 February 2027. Use the 26c-per-rand rule from Example 1 as a quick check if you're in the 26% bracket.
- File your ITR12 for the 2026 year by 22 January 2027 if you had side income then, declaring it as business income.
- Check turnover tax and VAT once a year as you grow: VAT becomes compulsory above R2.3 million in sales.
Sources
Checked on 27 October 2026.
- SARS, Personal income tax thresholds and Budget 2026 tax guide (tax tables, rebates, VAT thresholds)
- SARS, Notice to submit returns for the 2026 year of assessment, Government Gazette 54598, 30 April 2026
- SARS, Provisional tax, FAQ on provisional tax registration and Guide to provisional tax
- SARS, SMME Connect Issue 15, August 2026
- SARS, Turnover tax and quick test
- SARS, Comprehensive guide to the ITR12
- National Treasury, Budget Review 2026, chapter 4
Quick answers
Do I pay tax on side hustle income below R99,000?
If your total taxable income for the year, including your salary and side-hustle profit, is R99,000 or less and you're under 65, you won't owe income tax for the 2027 tax year (1 March 2026 to 28 February 2027). But SARS still requires a return from anyone who carried on a trade, so you should file.
Do I need to register separately as a provisional taxpayer?
No. SARS says there is no separate registration for provisional tax. If you're liable, you request an IRP6 return on eFiling or the SARS MobiApp and submit it twice a year.
When are the next provisional tax deadlines?
The second IRP6 for the 2027 tax year is due by the last business day of February 2027, which is Friday 26 February 2027. The ITR12 for the 2026 tax year is due by 22 January 2027 for provisional taxpayers.
Do I need to register for VAT for my side hustle?
Only once your taxable sales exceed R2.3 million in 12 months, the compulsory threshold since Budget 2026. You can choose to register voluntarily once sales pass R120,000.
Zanele Khumalo is the pen name of the Hustle Admin editorial team. Rules and figures come from the official sources linked above and were checked on the date shown; tax rules and fees change, so confirm with SARS, CIPC or the provider. Example scenarios are illustrations with stated assumptions, not real people. This is general information, not tax or legal advice. Some links may earn us a commission at no cost to you; we say so where they do.