5 min read · Updated 2026
Side hustle tax in South Africa: what you need to know
Earn extra money outside your job? How side income is taxed in South Africa, provisional tax, what you can deduct and how to stay on the right side of SARS.
Side income is taxable
Money from freelancing, selling or services on the side is added to your salary and taxed at your marginal rate. Your employer's PAYE doesn't cover it.
You will probably be a provisional taxpayer
Income not taxed through PAYE generally makes you a provisional taxpayer, with IRP6 payments due by 31 August and the end of February.
Keep simple records
- Every payment received
- Business expenses and receipts
- A separate account for side income
- A monthly tax set-aside
Deduct genuine costs
Costs incurred to earn the side income — software, equipment depreciation, data used for the work — can usually reduce your taxable income.
Frequently asked questions
Is there a small amount I can earn tax-free on the side?
Your side income is added to your salary, so it's taxed at your marginal rate. Check SARS guidance for your situation.
Do I need to register a business?
No. You can trade as a sole proprietor in your own name. Many start this way.
General information only, based on South African legislation as of 2026. Confirm your situation with a registered tax practitioner or attorney.