Tax on rental incomeand property sales
Rental income in South Africa must be declared to SARS and is taxed at your marginal rate, after deducting expenses such as bond interest, rates, levies, insurance, agent fees and repairs. N&V Accounting & Tax Services prepares rental income schedules, capital gains tax calculations on property sales and returns for landlords, investors and property businesses across KwaZulu-Natal.
Who we help
Individual landlords
One flat, a garden cottage or a room in your home: rent declared, expenses deducted and apportioned correctly.
Short-term and holiday lets
Airbnb and holiday rentals are taxable too. We work out the income, the costs and whether VAT rules apply.
Property companies and trusts
Rental portfolios held in a company or trust: financial statements, ITR14 or trust returns, and the tax cost of each structure.
What you can and can't deduct from rental income
Source: SARS, "Tax on rental income".
| Usually deductible | Not deductible |
|---|---|
| Bond interest (not the capital repayments) | Capital improvements, such as an extension or new kitchen (these add to base cost for CGT instead) |
| Rates and taxes | Private or personal expenses |
| Levies and security | The part of shared costs that relates to your own use of the property |
| Homeowner's insurance | |
| Agent's commission and advertising | |
| Repairs and maintenance, garden services |
If you rent out part of your home, shared costs are apportioned by the rented area as a share of the whole property. Costs that relate only to the rental, such as advertising, are deducted in full.
Selling a property? Work out the CGT before you sign
When you sell a property that isn't your primary residence, the capital gain is taxed. For individuals, 40% of the net gain is added to taxable income, which gives a maximum effective rate of 18%. The first R50,000 of an individual's gains each year is excluded, and from 2 March 2026 the first R3 million of gain on your primary residence is excluded.
The gain is the selling price less the base cost: what you paid, transfer costs, and qualifying improvements over the years. Keep those invoices — they reduce the tax.
Source: SARS, Budget 2026 FAQs and CGT tax rates, checked 30 September 2026.
Frequently asked questions
Yes. Rental income, including income from a room, garden flat or short-term let, must be declared to SARS and is taxed at your marginal rate. You can deduct expenses incurred in earning the rent, such as bond interest, rates, levies, insurance, agent fees and repairs. Capital improvements and private costs are not deductible, and part-home lettings must be apportioned. Source: SARS.
For individuals, 40% of the net capital gain is added to taxable income and taxed at your marginal rate, so the maximum effective rate is 18%. From 2 March 2026, the first R50,000 of an individual's annual gains is excluded, and the primary-residence exclusion rose to R3 million. Companies include 80% of the gain, a maximum effective rate of 21.6%. Source: SARS.
Yes. Rental profit earned inside a company is taxed at the 27% company rate, and dividends tax applies when profits are paid out to shareholders. On sale, a company includes 80% of the capital gain rather than 40%. A trust is taxed at a flat 45% on income it keeps, unless income is distributed to beneficiaries. The right structure depends on your goals.
SARS has said publicly that all forms of rental income must be declared, and it can raise assessments for past years with penalties and interest. If you haven't declared rent, it is usually better to correct it before SARS contacts you. Depending on your circumstances, the Voluntary Disclosure Programme may reduce the penalties. We'll look at your situation and explain the options.
Yes. Income from Airbnb and other short-term or holiday rentals is rental income and must be declared to SARS. You can deduct costs incurred to earn it, such as cleaning, platform fees, utilities and a share of bond interest, apportioned if you also use the property yourself. Larger short-term letting operations can also fall under VAT's commercial accommodation rules, so check before you scale up.
Services for property owners
Personal tax
ITR12 returns and IRP6 provisional tax, including rental income and capital gains.
Business tax
ITR14 company returns, provisional tax, SBC and turnover tax decisions, and tax compliance status.
Company accounts
Annual financial statements to IFRS for SMEs and monthly management accounts, prepared by a CA(SA).
Declare it properly, keep more of it
Tell us how many properties you own, how they're held and whether any are short-term lets. We'll quote your rental schedules and returns.