What landlords can deduct
- Bond interest on the rental property (only the interest, not capital repayments)
- Rates and taxes, levies, building insurance
- Repairs and maintenance that restore the property (painting, fixing a geyser), not improvements
- Agent commission, management fees, advertising, legal fees for lease or eviction
- Wear and tear on furniture and appliances you supply (usually over 6 years; SARS Interpretation Note 47)
- Utilities you pay that the tenant doesn't refund
When a rental loss can't be used (section 20A)
If your taxable income (before the loss) is in the top tax bracket and you've had losses in 3 of the last 5 years, SARS can ring-fence the loss so it's carried forward against future rental profit instead of reducing your salary tax.
Renting out a room or using Airbnb
The same rules apply: income less expenses that relate to the rented part (apportion by floor area and days). Short-term rentals above R2.3 million a year (from April 2026) must also register for VAT; long-term residential rent is VAT-exempt.
Frequently asked questions
How much tax do I pay on rental income in South Africa?
Your rental profit is taxed at your marginal rate, between 18% and 45%. Use the calculator for your exact amount.
Can I deduct my bond repayments?
Only the interest portion on a bond used to buy the rental property. The capital portion isn't deductible.
Do I have to pay provisional tax on rental income?
Usually yes: if your rental and other non-salary income is more than R30,000 a year, you must register as a provisional taxpayer and pay IRP6 twice a year.
Last updated 2026-10-10. Sources: SARS rates of tax for individuals, medical tax credit rates, interest exemption, capital gains tax and the rate-per-kilometre schedule on sars.gov.za.