Turnover tax calculator 2026/27
Your details
Turnover tax for the year
R2 500.00
Effective rate 0.29% of turnover; top band 1%
- Normal income tax on the profit
- R114 907.00
- Turnover tax saves you
- R112 407.00
- Business profit (turnover less expenses)
- R550 000.00
How we worked it out
- Taxable turnover for the yearR850 000.00
- Turnover taxR2 500.00
1% of turnover above R600 000
- Effective rate on turnover0.29%
- Business profit (turnover less expenses)R550 000.00
- Normal income tax on that profit insteadR114 907.00
2026/27 individual rates and rebates, age 35
- Turnover tax is optional and only for qualifying businesses: see who is excluded below the calculator.
The 2026/27 table
| Taxable turnover | Turnover tax |
|---|---|
| R1 – R600 000 | 0% |
| R600 001 – R950 000 | 1% of turnover above R600 000 |
| R950 001 – R1 400 000 | R3 500 + 2% of turnover above R950 000 |
| R1 400 001 and above | R12 500 + 3% of turnover above R1 400 000 |
Qualifying turnover limit: R2 300 000 a year (from 1 April 2026). Source: SARS turnover tax page and the Budget 2026 Tax Guide.
Records you must keep
Turnover tax needs fewer records: a record of all amounts received, of dividends declared, and of assets and liabilities that cost more than R10 000.
How to register
New businesses must apply within 2 months of starting to trade; existing businesses can switch before the start of a new tax year. Read turnover tax explained.
Frequently asked questions
What are the turnover tax rates for 2026/27?
0% on turnover up to R600 000; 1% of turnover above R600 000 up to R950 000; R3 500 plus 2% above R950 000 up to R1 400 000; and R12 500 plus 3% above R1 400 000. These are the first changes to the bands since 2009 (Budget 2026).
Who qualifies for turnover tax?
Sole proprietors, partnerships, close corporations, companies and co-operatives with qualifying annual turnover of R2 300 000 or less (up from R1 000 000). It is optional.
Who cannot use turnover tax?
Businesses where more than 20% of receipts are from professional services (such as accounting, consulting or management services) or from investment income, personal service providers and labour brokers, companies with a shareholder that is not an individual or that hold shares in other private companies, and businesses that previously left the system.
What taxes does it replace?
Income tax, provisional tax, capital gains tax and dividends tax on the business, and VAT unless you choose to stay registered for VAT as well.
When is turnover tax paid?
For a March to February year, interim payments are due on the last business day of August and of February using the TT02 payment advice. A final payment follows once SARS processes your annual TT03 return, which is filed in the normal tax return season.
Is turnover tax always cheaper?
No. It is charged on sales, not profit. If your expenses are high or your profit is low, normal income tax can be lower. The calculator compares the two.