Tax on your rental income, for the year

SARS taxes the profit on a let property, not the rent that arrives. Profit is what you received minus the cost of earning it, and the whole exercise turns on knowing which costs count. Landlords miss deductions they're entitled to every year and quietly overpay for it.

Deductible against rental income under SARS rules: bond interest, rates and taxes, levies on a sectional-title unit, insurance on the building, letting or estate agent commission, repairs and maintenance to the let area, advertising for tenants, and reasonable other running costs.

The bond is where the money hides. Only the interest portion is deductible, never the capital repayment, and over a full year that figure is usually far larger than owners guess. Your bank can give you the exact number, so ask for it. Improvements sit outside this: a new kitchen is capital rather than a repair, so it isn't deductible here, though it lifts your base cost and reduces capital gains tax when you eventually sell.

To run a year you'll need the monthly rent and the number of months it was actually let, each expense with its real figure, and your taxable income, since the rental profit is taxed on top of it at your marginal rate. Be honest about vacancy. Entering twelve months out of habit inflates both the income and the tax.

Out comes the gross rent, the total deductions, the profit and the tax on it, in a summary you can keep for tax season. Where costs ran ahead of rent it shows a loss instead, and flags whether SARS might ring-fence it. Ring-fencing only bites above the R1,878,600 top-bracket threshold, and it means a rental loss can't be set against your salary that year.

It models one property at a time for an individual under 65 on the 2026/27 tables. Companies and trusts are taxed on different rules and aren't covered.

Money Cat is an information tool, not tax or legal advice. Deductible categories follow SARS guidance for the 2026/27 year. Confirm your return with a registered tax practitioner or SARS.