The City of Cape Town will propose a 10.2% cut in the residential rate-in-the-rand following the General Valuation 2025 (GV2025), after strong growth in property values.
The indicative residential rate-in-the-rand for 2026/27 is 0.006428, down from 0.007159. The final rate will be set in May when council adopts the budget. The total value of rated properties increased 16.65% between GV2022 and GV2025, from R1.85-trillion to R2.158-trillion. Residential property values rose 17.1%, from R1.396-trillion to R1.634-trillion.
To cushion homeowners, the city will propose raising the rates-free threshold to the first R500,000 of a property’s value, from R450,000, and extending the benefit to homes valued up to R8m, from R7m. It estimates 60% of residential properties will see either a decrease in rates or no change.
For homes valued below R3m, the median monthly increase is expected to range from R3 to R27, with about 90% avoiding increases of more than R100 a month. Properties valued between R3m and R6m may see median increases of R27 to R200, while those in the R6m-R10m range could face increases of R200 to R350.
Mayor Geordin Hill-Lewis said the reduction and expanded relief would shield most homeowners from sharp increases despite higher valuations.
The city will table its draft 2026/27 budget on March 26. It said it would present a balanced budget, keep tariff increases to the minimum required to avoid service cuts, raise indigent relief thresholds and adjust property bands for fixed charges to limit shifts between categories.
Cape Town’s indicative 2026/27 residential rate-in-the-rand of 0.006428 remains below that of other major metros such as Johannesburg (0.009545), Tshwane (0.010117), Ekurhuleni (0.011520) and eThekwini (0.014254).
The GV2025 roll will be open for inspection from February 20 to April 30. The valuation date is July 1 2025. Objections must be submitted within the prescribed period and supported by market-related information reflecting values at that date. No late objections will be considered.
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