What this page covers
SARS applies several different interest rates, and they are not the same number. Which one applies depends on whether tax is late, overpaid, or being imputed on a low-interest loan.
| Rate | Current | Where it applies |
|---|---|---|
| Interest on underpayment | 11.75% | Tax paid late, including provisional shortfalls |
| Interest on overpayment | 7.75% | Refunds owed to you, in limited circumstances |
| Official rate of interest | 8.25% | Fringe benefit on a low-interest employee loan |
| Prescribed rate, general | 11.75% | Judgment debts and various statutory calculations |
| From | Underpayment | Overpayment | Official rate |
|---|---|---|---|
| 2026 | 11.75% | 7.75% | 8.25% |
| 2025 | 11.25% | 7.25% | 7.75% |
| 2024 | 11.75% | 7.75% | 8.75% |
| 2023 | 10.50% | 6.50% | 8.25% |
| 2022 | 7.75% | 3.75% | 4.75% |
| 2021 | 7.00% | 3.00% | 4.50% |
| Amount owed | One month late | Six months late | Twelve months late |
|---|---|---|---|
| R10,000 | R98 | R588 | R1,175 |
| R50,000 | R490 | R2,938 | R5,875 |
| R100,000 | R979 | R5,875 | R11,750 |
| R250,000 | R2,448 | R14,688 | R29,375 |
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Every table on this page as a spreadsheet, with the source and the date it was checked in the header rows.
⬇ Download CSVHow these figures work
The figures on this page come from published sources and change on a schedule rather than continuously, which is what makes them worth recording in one place. Interest on underpayment is charged in addition to any penalty, not instead of it. A late provisional payment attracts the 10% penalty and then interest on the balance.
The gap between the underpayment and overpayment rates is deliberate. SARS charges four percentage points more than it pays, which makes deliberately overpaying an expensive way to hold money.
★ A worked example
Reading the tables together is where the value is. The official rate of interest tracks the repo rate plus one percentage point, so it moves with MPC decisions rather than being set separately.
✕ Common mistakes
- Interest on underpayment is charged in addition to any penalty, not in. Interest on underpayment is charged in addition to any penalty, not instead of it. A late provisional payment attracts the 10% penalty and then interest on the balance.
- The gap between the underpayment and overpayment rates is deliberate. The gap between the underpayment and overpayment rates is deliberate. SARS charges four percentage points more than it pays, which makes deliberately overpaying an expensive way to hold money.
- The official rate of interest tracks the repo rate plus one percentage. The official rate of interest tracks the repo rate plus one percentage point, so it moves with MPC decisions rather than being set separately.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- Interest on underpayment is charged in addition to any penalty, not instead of it. A late provisional payment attracts the 10% penalty and then interest on the balance.
- The gap between the underpayment and overpayment rates is deliberate. SARS charges four percentage points more than it pays, which makes deliberately overpaying an expensive way to hold money.
- The official rate of interest tracks the repo rate plus one percentage point, so it moves with MPC decisions rather than being set separately.
To put these figures to work, the Provisional Tax Deadlines runs the arithmetic on your own numbers, and Provisional Tax Calculator covers the same ground in ordinary language. SARB Repo Rate History and SARS Tax Season Dates go into the detail this table only summarises. The Declaring trading income covers the part this table leaves out.
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Frequently asked questions
Why does SARS charge more than it pays?
The gap is deliberate, about four percentage points. It removes any incentive to overpay deliberately as a place to park money.
Is interest charged as well as a penalty?
Yes. A late provisional payment attracts the 10% penalty and then interest on the outstanding balance until it is settled.
What is the official rate of interest for?
Valuing the fringe benefit on a low-interest employee loan. It tracks the repo rate plus one percentage point.
When does SARS pay interest on a refund?
Only in limited circumstances, generally where the refund is delayed beyond a prescribed period.
How is the interest calculated?
On the outstanding balance, accruing until payment. It is not a flat charge applied once.
Where are the current rates published?
On the SARS interest rate page, which is updated when the rates change.