As Benjamin Franklin famously wrote: the only things that are certain are death and taxes.
Yet, when it comes to property rates, many homeowners wonder if they’re paying far more than their fair share. Property taxes can feel opaque and confusing, often fluctuating significantly from one neighborhood (or even one street) to the next. In this blog, we'll explore how to determine if your property rates are justified, highlight common pitfalls that could inflate your bill, and outline actionable steps to ensure you’re not overpaying.
How are property rates calculated?
Property rates are tied directly to the market value of any property, whether it’s residential or business.
There’s a legal framework
Since the Municipal Property Rates Act (MPRA) came into effect, every municipality must assign market values to all immovable properties that fall into their jurisdiction. In terms of the MPRA, municipalities must adopt a rates policy that outlines how rates are calculated on different types of properties, exemptions, reductions and rebates.
It also stipulates that property values must be recorded in a public valuation roll that is updated and set every 4 to 5 years. Municipalities are also required to establish a process for property owners to object to valuations and appeal against decisions – we discuss this below.
The sums
Each municipality will determine the amount it will charge for property rates for every R1 of a property’s value, and this will be different for commercial and residential property, and is worked out using this formula:
Market value x rate-in-the-rand = annual rates amount
For example, if your property is valued at R900,000 and your municipality sets a rate of 0.011 (1.1 cents in the rand), your annual rates would be R9,900 per annum before any rebates.
For the 2025/26 financial years, the residential rates-in-the-rand for South Africa’s three metros are:
- Cape Town – 0,007159
- Johannesburg – 0,009545
- eThekwini – 0,014254
Rebates
Most municipalities also offer rebates on rates. For example, both Cape Town and Johannesburg have automatic rebates for the first R450,000 and R200,000 of the property values, respectively. Other rebates can be available for qualifying pensioners, indigent and child-headed households.
The General Valuation Roll
Every four to five years, municipalities update their general valuation rolls (GVR), which lists the market values of all properties within the municipal boundary. Instead of checking every property in person, the municipality hires professional valuers who use data from your area and recent property sales to estimate the value of each property.
Where do I find the municipal valuation of my property?
Sometimes, municipal rate accounts include this information along with the property category (zoning) and stand number. If it does not, and/or you want to find the municipal valuation of another property in South Africa, you can go to the specific municipality’s website and search for their valuation roll. These online rolls are searchable by street address, erf (stand) and/or account number.
Why have my rates gone up?
Your municipal rates will go up for three primary reasons:
- The annual escalation that municipalities apply to keep up with inflation and rising costs
- You have made improvements on your property, e.g. by adding another room or dwelling, or the property has been rezoned
- If there has been a property boom and prices have skyrocketed, improving the market value of your property
On the other hand, if prices in the area have dropped, your rates should also see a decline.
Can I object if I disagree with the municipal valuation?
Most municipalities use a computer-aided mass appraisal (CAMA) system to determine the values of all properties rather than door-to-door site visits. This means that there can be discrepancies between the municipal valuation and what the property market supports.
“Homeowners are encouraged to review the valuation roll in order to object to the valuation of their property if they feel as though it is unreasonable or face the consequences of higher municipal rates than necessary until the next valuation roll is released,” advises Adrian Goslett, Regional Director and CEO of REMAX Southern Africa.
If this is the case for your property, in terms of the MPRA, you have the legal right to object if you believe your property has been overvalued. Every time a municipality conducts a general valuation, it must advise you of the new value and at the same time inform you of both your right to appeal and how to go about it.
How to Object to the General Valuation Roll:
Step 1: Review the general valuation roll (GVR) on your municipality’s website:
Confirm that your property’s details are correct, i.e. like size, zoning, improvements, etc..
Step 2: Compare Market Values
Check recent sales of similar properties in your area. If the municipal valuation is significantly higher than comparable homes, you may have grounds for objection. Ask your local RE/MAX agent for a comparative market analysis.
Step 3: Download and complete the objection form
Either collect the objection form from your local municipal office or download it from the website. Your objection is to the property valuation and not the new rates charged, so that must be the focus of your objection.
Step 4: Supporting documents
It’s important to substantiate your objection by providing evidence of, e.g. the prices realised for similar properties, an original or certified copy of any independent valuation reports or comparative market analyses. Photographs and/or building plans that illustrate your point will also help, as will copies of your zoning certificate if that is one of the reasons for your objection.
Step 5: Submit your objection before the deadline date
When the updated GVR is published, that notice will also indicate the closing date for objections, usually four to six weeks. They will not accept a late submission. If you submit a hard copy to your municipality, ask for a receipt/confirmation that you have submitted it. Online submissions usually trigger an electronic acknowledgement.
Step 6: Wait for the outcome
The municipality will advise you, in due course, of the outcome of your submission.
What can I do if I still disagree with the outcome?
When you receive the written decision informing you of the outcome of your objection, and you are still unhappy, you can escalate the matter to the Valuation Appeal Board. Usually, there is a fee attached to this process, and the Board’s decision is final.
Final Thoughts
If you've ever opened your property rates notice with suspicion or disbelief, you're not alone - but thankfully there are ways to find out if the rates are fair or not. If you’d like an objective assessment of the value of your property, contact your local RE/MAX office.
Have more unanswered questions? Here are some related questions – and answers – that might help…
Why do municipalities charge rates & taxes on properties?
Municipalities are responsible for keeping towns and cities running smoothly, and to do this, they need a source of income.
This largely comes from rates and taxes, which is reflected in the annual municipal budget and is used to fund essential services ranging from road maintenance, stormwater management and street lighting, to firefighting, emergency medical services and disaster management.
Municipalities are also responsible for funding other important services to the public, for example, some primary health care clinics and public libraries. In addition to ongoing maintenance, rates income can also be used for projects like building sports facilities, library upgrades, or establishing parks.
What do property rates not pay for?
The cost of utilities (i.e. water and electricity) are paid for separately, either to the municipality or, in the case of electricity, sometimes directly to Eskom. Some municipalities also charge separately for sewerage and waste removal. This utility income is ringfenced to fund the uninterrupted provision of these services.
