Property rates explained

The formula

Your rates for the year are your property’s municipal valuation, less any residential exclusion, multiplied by your municipality’s rate in the rand for that category of property, less any rebate. A rate in the rand of R0,009 means you pay 0,9 cents a year for every rand of rateable value: on a rateable value of R 1 000 000 that is R 9 000 a year, or R 750 a month.

The valuation roll

Municipalities value every property in a general valuation, normally every four or five years, and publish the result as a valuation roll. The value is the market value at a set date, not what you paid. Between general valuations, a supplementary roll picks up new buildings, subdivisions and other changes.

Rate in the rand and categories

Each municipality sets a rate in the rand for each category of property, such as residential, business, agricultural and vacant land, every year in its budget, which takes effect on 1 July. Residential rates are usually the lowest; vacant land and business property pay more.

Exclusions and rebates

By law, municipalities may not levy rates on the first R 15 000 of the market value of a residential property. Most cities go much further: Johannesburg does not rate the first R 300 000, and Cape Town does not rate the first R 620 000 of residential properties valued up to R 8 million in 2026/27. Rates policies usually add rebates for pensioners and people on low incomes, and relief for homes below a set value. You normally have to apply for these, so check your municipality’s rates policy.

Objecting to your valuation

1. Check the roll when it is published, online or at a municipal office.
2. Lodge an objection within the published period, with evidence such as recent sales of similar homes nearby.
3. If you disagree with the outcome, you can appeal to the valuation appeal board.

Keep paying your rates while an objection is open; any change is backdated if your objection succeeds.

Frequently asked questions

Are property rates the same as municipal services?

No. Rates pay for general services. Water, electricity, refuse and sewerage are charged separately on the same account.

Do I pay rates on a sectional title unit?

Yes. Each unit has its own valuation and rates account. The levy you pay the body corporate is separate.

Why do rates differ so much between municipalities?

Each municipality sets its own rate in the rand, exclusions and rebates in its budget, based on its spending and the total value of property in its area.

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