Property rates are a tax on the value of immovable property, levied by metropolitan and local municipalities under the Municipal Property Rates Act. They are the most reliable revenue a municipality has, because they do not depend on consumption and are secured against the property itself.
How the amount is calculated
- The market value of your property, as recorded in the municipality’s general valuation roll.
- The rate in the rand that the council sets each year in its budget, which differs by property category. Residential, business, agricultural and industrial properties are rated differently.
- Reductions and rebates, including the statutory residential exclusion on the first portion of value, and rebates for pensioners, indigent households and certain property types.
The calculation is essentially the rateable value multiplied by the rate in the rand, spread over twelve months.
The general valuation roll
Municipalities must value every property in their area at least every four years and publish the results as a general valuation roll. When a new roll is published it is open for public inspection and objection for a defined period.
How to object to your valuation
You object to the value, not to the rate.
- Inspect the roll during the objection period and note the recorded value and category of your property.
- Lodge an objection on the prescribed form before the closing date. Late objections are generally not accepted.
- Support it with evidence: recent comparable sales, a private valuation, or evidence of a defect affecting value.
- If the outcome is unsatisfactory, appeal to the valuation appeal board.
Objecting does not suspend your obligation to pay in the meantime. If the objection succeeds, the account is adjusted.
Why rates differ so much between municipalities
Because the property base differs. A municipality of high-value suburbs raises substantial income at a modest rate in the rand. One covering areas where land is held communally and values are low raises very little regardless of what rate it sets. This is a structural constraint rather than a management failure, and it explains much of the variation in municipal financial health across the country.
Common questions
Do I pay rates if I rent?
The owner is liable for rates, but landlords commonly recover the cost through rent. In sectional title schemes the body corporate arrangements determine how it is handled.
What is the residential exclusion?
A portion of the market value of a residential property is excluded from rating by law, and municipalities may set a higher exclusion. This means low-value residential properties often pay no rates at all.
Are rates the same as my services bill?
No, though they usually appear on the same account. Rates are a tax on property value. Water, electricity, sanitation and refuse are charges for services provided.
Figures on this page come from National Treasury, Statistics South Africa and the Auditor-General, as set out in the sources and methodology. Read the methodology