Use TaxTim's free SARS rental income tax calculator to work out exactly how much tax you'll pay as a South African landlord for the 2026 tax year (1 March 2025 to 28 February 2026). Enter your rent received and your deductible expenses — bond interest, municipal rates, levies, building insurance, agent commission, repairs and advertising — and the calculator works out your taxable rental profit (or loss), stacks it on top of your other income, and shows the extra tax at your marginal rate. It also flags whether you cross the R30,000 provisional-tax threshold and whether a rental loss may be ring-fenced under section 20A.
Rental income is not taxed separately — it is added to your other taxable income and taxed at your marginal rate using the SARS individual tax tables.
SARS individual tax brackets — 2026 tax year (1 Mar 2025 – 28 Feb 2026):
| Taxable income (R) | Rates of tax |
|---|---|
| 0 – 237,100 | 18% of taxable income |
| 237,101 – 370,500 | 42,678 + 26% above 237,100 |
| 370,501 – 512,800 | 77,362 + 31% above 370,500 |
| 512,801 – 673,000 | 121,475 + 36% above 512,800 |
| 673,001 – 857,900 | 179,147 + 39% above 673,000 |
| 857,901 – 1,817,000 | 251,258 + 41% above 857,900 |
| 1,817,001 and above | 644,489 + 45% above 1,817,000 |
Rebates: Primary R17,235 • Secondary (65+) R9,444 • Tertiary (75+) R3,145
Tax thresholds (no tax below): Under 65 R95,750 • 65–74 R148,217 • 75+ R165,689
Provisional-tax flag: rental profit + interest + foreign dividends > R30,000 makes you a provisional taxpayer (IRP6 returns).
VAT: residential letting is an exempt supply — no VAT on rent, no input VAT on expenses.
Example (2026 tax year): Lerato, age 40, earns R450,000 of other taxable income (salary) and lets a flat for R120,000 a year (100% let).
Figures are illustrative; your actual result depends on your full income, age and the expenses you can substantiate.
Rental income is added to your other taxable income and taxed at your marginal rate using the SARS individual tax tables. You first deduct allowable expenses (such as bond interest, rates, levies, insurance, agent commission and repairs) from the rent received to get your taxable rental profit or loss.
No. Only the INTEREST portion of your bond is deductible — the capital repayment is not. Use the interest figure shown on your annual bond statement, not the total monthly instalment.
SARS allows expenses incurred in producing the rental income: bond interest, municipal rates and taxes, levies, building (homeowner's) insurance, estate-agent/letting commission, advertising, repairs and maintenance, and garden and security services for the let area. Capital costs, improvements, contents insurance and bond/credit-life insurance are not deductible.
No. A repair restores the property to its original condition (e.g. fixing a leak or repainting) and is deductible. An improvement creates a better asset (e.g. adding a room) and is capital — not deductible against rent, but it adds to the property's base cost for capital gains tax when you sell.
If your combined taxable income from rental, interest, foreign dividends and pay from an unregistered employer exceeds R30,000 for the year, you are a provisional taxpayer and must submit IRP6 returns (one by end August, one by end February). The R30,000 is on the taxable (net) amount, not gross rent.
A rental loss normally offsets your other income and reduces your overall tax. But under section 20A, if your income (before the loss) is in the top 45% bracket AND you've made losses in 3 of the last 5 years OR it's a 'suspect trade' (e.g. residential letting not let at least 80% to unrelated parties), the loss is ring-fenced — it can only be set off against future income from that same rental, not your salary.
No. The supply of residential accommodation (a dwelling) is an exempt supply for VAT, so you do not charge output VAT on the rent and you cannot claim input VAT on your expenses. You deduct expenses VAT-inclusive against your rental income for income tax.
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