Tax on a side hustle
Selling online, freelancing, tutoring or driving on weekends? SARS taxes that income. Here is how it works in 2026/27 and the three things to check: provisional tax, turnover tax and VAT.
1 point we are still verifying
- Confirm promulgation of the VAT registration threshold amendment.
General information, not tax advice. KayaHustle is not SARS. A registered tax practitioner can help with your return.
1. Your profit is taxable income
Income from a side hustle, less the expenses of earning it, is added to your other income and taxed at your normal rates. Declare it on your annual return. The 2026/27 tax threshold for people under 65 is R99 000 of total taxable income. See your marginal rate with the income tax calculator on RandRight.
2. You are probably a provisional taxpayer
Anyone who earns income other than a salary is a provisional taxpayer and must pay tax in advance, by the end of August and the end of February, on the IRP6. SARS excludes people who do not carry on a business if their income stays under certain limits, but a side hustle is a business, so plan for it. Estimate the payments with the provisional tax calculator.
3. Turnover tax may be simpler
If your sales are R2 300 000 or less, you may be able to pay turnover tax on the business instead: 0% up to R600 000 of turnover. Your salary is still taxed normally.
4. VAT only above R2 300 000
You must register for VAT only when taxable sales pass R2 300 000 in 12 months. Until you register, do not charge VAT. Check with the VAT registration checker.
5. Invoice properly and keep records
Send numbered invoices (make one with the invoice generator) and keep receipts for expenses for at least five years.
Frequently asked questions
Do I pay tax on side-hustle income if I already have a job?
Yes. Business profit is added to your salary and taxed at your marginal rate, so even a small side income can be taxed at 26% to 45%. Your employer's PAYE does not cover it.
Is there a tax-free amount for side hustles?
There is no separate exemption. Individuals under 65 pay no income tax if total taxable income is R99 000 or less in 2026/27, but that threshold covers all your income together.
Can I deduct expenses?
Yes, expenses incurred to earn the business income (stock, data, transport for work, equipment wear and tear) can be deducted. Keep receipts. Private expenses are not deductible.