Property Rates on Second and Further Residential Properties Owned by the Same Entity
Section 17(1)(h) of the Municipal Property Rates Act 6 of 2004 (MPRA) provides that no rates may be levied on the first R15 000 of the market value of properties categorised as “Residential Properties”. This exclusion applies to all residential properties in South Africa.
Municipalities may provide additional relief through exemptions, rebates, and reductions, which must be detailed in their rates policies.
In Johannesburg, the reduction since July 2023 is R285 000, referred to in the rates policy as the “threshold rebate”.
Clause 6.3.5 of the 2024/25 Rates Policy limits the threshold rebate to one property per owner.
If you own more than one property registered in your name (or in the name of the same entity), only one property will receive the benefit of R300 000 (R15 000 + R285 000), equal to R228.13 per month.
Second and further residential properties will no longer receive the threshold rebate.
Although this change took effect on 1 July 2024, it was implemented on the December 2024 accounts.
There are now three items under the property rates section on the accounts for second and further properties:
- Monthly rates based on the property value
Example: R1 200 000 × R0.0091250 / 12 = R912.50 - Less rates on the first R300 000 of market value
= –R228.13 - Add Section 15 MPRA adjustment
= R216.17 (This adds back the rates on R285 000)
Total: R900.54