Cape Town to Raise Property Rates by 7.96% in 2025/2026 to Fund Safety and Infrastructure Projects
The City of Cape Town has confirmed a 7.96% increase in property rates for the 2025/2026 financial year. This adjustment will help fund planned investments in safety services and infrastructure upgrades across the city.
According to the City’s review of draft budgets from South Africa’s major metros, Cape Town continues to offer the lowest property rates for both residential and commercial properties. For commercial and industrial properties, rates in Johannesburg are currently 42% higher than Cape Town’s. For residential properties, Joburg’s rates are 33% higher.
Despite its lower rates, Cape Town plans to invest R39.7 billion in infrastructure over the next three years, which is 53% more than Johannesburg’s R24.3 billion allocation for the same period.
For every R1 collected in property rates, Cape Town allocates funds as follows:
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29c for Policing, Traffic, Fire, and Disaster Services
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14c for Infrastructure Investment
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15c for Free and Subsidised Services to the Poor
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15c for Customer Care, IT, and Service Delivery
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13c for Parks, Public Spaces, Environment, and Libraries
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6c for MyCiTi Public Transport
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4c for Economic Growth, Tourism, and Informal Trading
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4c for City Clinics and Health Services
The City also offers some of the most generous relief measures to support vulnerable residents. These include:
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The highest allocation of free water (15 kilolitres per household)
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A 100% rates rebate for properties valued up to R450,000 where household income is under R7,500 per month
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Access to lifeline electricity tariffs for properties valued up to R500,000 with household income under R7,500 per month
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Pensioners earning less than R22,000 per month qualify for the widest rebates and lifeline electricity, regardless of their property value
These measures aim to balance the need for citywide investment with ongoing support for households under financial pressure.
