The City of Cape Town will propose a 10.2% lowering of the rate-in-rand for residential properties following the General Valuation 2025. Cape Town’s rate-in-rand is the formula which is used to calculate property rates and is already the lowest in South Africa across all rates categories. It is set to lower further rates after healthy property value growth in the latest valuation.
The indicative residential rate-in-rand of the City of Cape Town is 0.006428 (down from 0.007159) pending draft budget finalisation. The GV Roll and all information, including on the inspection venues, will be available on its official website from February 20, 2026.
Reportedly, the lower rate-in-rand is among several proposed measures that helps in keeping property rates, that has increased to a minimum for most homeowners despite strong asset value growth for property owners in Cape Town. Other proposed measures in the forthcoming draft Budget 2026-27 includes raise in the ‘rates-free benefit’ to the first R500,000 of property value (up from R450,000), and extending this benefit to all properties up to R8m (up from R7m).
These planned measures ensure that 60% of residential properties will experience either rates decrease, or no change in rates, even though their property value has risen.
Mayor Geordin Hill Lewis stated that the proposed 10.2% rate-in-rand decrease and extended rates benefits to more middle-class homes will shield the large majority of ratepayers over 60% of all homes with very low rates, that increased despite their property asset showing strong value growth, and also increased their family’s net worth.
Cape Town is South Africa’s one city that works, offering the best services, SA-records infrastructure investments, the chance for your property assets and personal wealth to grow in value no matter who you are. And the lowest total monthly bills of SA’s metros, even when taking higher property values into account. This is the difference compared to other cities, where property values are declining even as rates rise and services sadly collapse.
The City of Cape Town will further deliver a balanced budget while keeping tariff’s increase to the minimum level needed to avoid severe service delivery cuts. Indigent relief thresholds will be raised, while property value bands for fixed charges and will be altered to mitigate the number of properties moving between bands as far as possible.
More details will follow when the 2026-27 budget draft is tabled in City Council on March 26 and when the full public participation process commences. The GV2025 public inspection and objection period is prescribed in terms of the Municipal Property Rates Act and is scheduled for February 20, 2026 until April 30, 2026.