Turnover Tax Calculator
Calculate South African turnover tax for micro businesses under R1 million. Compare turnover tax vs income tax, quarterly payments, and eligibility check.
Turnover Tax: Simplified Tax for Micro Businesses
Turnover tax is a simplified tax system replacing income tax, VAT, and provisional tax for micro businesses with annual turnover under R1 million. You pay a percentage of your gross revenue rather than complex income tax calculations.
The first R335,000 is tax-free. Above that, rates range from 1% to 3%. Quarterly payments are due in August, November, February, and May.
| Turnover | Rate | Tax |
|---|---|---|
| R0 – R335,000 | 0% | R 0 |
| R335,001 – R500,000 | 1% | R 1,650 max |
| R500,001 – R750,000 | 2% | R 6,650 max |
| R750,001 – R1,000,000 | 3% | R 14,150 max |
Turnover Tax Rates 2025/2026
| Annual Turnover | Rate | Maximum Tax |
|---|---|---|
| R0 – R335,000 | 0% | R 0 |
| R335,001 – R500,000 | 1% on excess above R335k | R 1,650 |
| R500,001 – R750,000 | 2% on excess above R500k | R 6,650 |
| R750,001 – R1,000,000 | 3% on excess above R750k | R 14,150 |
Qualifying Criteria
Eligible: Sole proprietors, CCs, companies, partnerships with turnover under R1m, not VAT registered, not a personal service business.
Excluded personal service businesses: Lawyers, accountants, doctors, architects, engineers, financial advisers — unless the business has at least 3 full-time employees who are not connected persons.
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||||||
| Expenses | ||||||||||||
| Net Income | R 50 000 | R 47 000 | R 35 000 | R 42 000 | R 39 000 | R 50 000 | R 58 000 | R 55 000 | R 42 000 | R 35 000 | R 47 000 | R 58 000 |
Quarterly Payment Schedule
| Quarter | Turnover | Tax | Due Date |
|---|---|---|---|
| Q1 (Jan–Mar) | R 215 000 | R 0 | 31 Aug |
| Q2 (Apr–Jun) | R 215 000 | R 950 | 30 Nov |
| Q3 (Jul–Sep) | R 245 000 | R 4 200 | 28 Feb |
| Q4 (Oct–Dec) | R 225 000 | R 6 000 | 31 May |
| Total | R 900 000 | R 11 150 |