Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified South Africa tax professional before filing.
South Africa · South Africa · Short-term rental taxes
Short-Term Rental Taxes in South Africa
Short term rental taxes in South Africa: SARS income tax at 18–45%, provisional tax twice a year, 15% VAT only above R2.3 million from 1 April 2026, the optional 1% TOMSA levy and municipal property rates.
The 30-Second Answer
- Short-term rental tax in South Africa is mostly income tax: SARS adds your net rental profit to your other taxable income, taxed at 18% to 45% for the 2027 tax year (1 March 2026 to 28 February 2027).
- Because rental income is not salary, most hosts are provisional taxpayers: two IRP6 payments a year, and a return deadline of 22 January 2027 for the 2026 year instead of October.
- Regular short stays with domestic goods and services are commercial accommodation for VAT. It becomes a VAT enterprise above R120,000 a year, and registration is compulsory only once taxable supplies pass R2.3 million in 12 months — up from R1 million on 1 April 2026.
- There is no national tourist or bed tax. The guest-facing extras are 15% VAT (registered vendors only) and the voluntary 1% TOMSA levy; your municipality charges property rates, and may rate the property differently by use under the Municipal Property Rates Act.
Deductions
What South African STR Hosts Can Deduct
SARS allows expenses incurred in producing the rental income. Where you let only part of your home, or use the property privately for part of the year, apportion shared costs.
Capital improvements are not deductible against rent but can be added to the property's base cost for capital gains tax. SARS apportions part-home lets by the area let as a percentage of the dwelling's total floor area (SARS — Tax on rental income).
Filing Calendar
Key Dates & Filing Calendar
The individual tax year ends on the last day of February. Hosts with rental profit usually pay provisional tax during the year and file their ITR12 in January.
Your first IRP6 for the 2028 tax year will be due by 31 August 2027. Base the estimate on realistic occupancy — underestimating taxable income can bring penalties and interest.
SARS — Filing Season 2026; Provisional tax; Register for VAT (sars.gov.za)
Tax Treatment
Stay Outside VAT vs. Register as a VAT Vendor
Income tax applies to every host. The real decision is VAT: between R120,000 and R2.3 million of commercial-accommodation supplies you may register voluntarily; above R2.3 million you must.
Not VAT-Registered
Income tax on profit; no VAT on your nightly rate
- Declare rental income and expenses on your ITR12 at your marginal rate — 18% to 45%.
- Pay provisional tax via IRP6 in August and February unless you qualify for an exemption.
- Below R120,000 a year of commercial-accommodation supplies, the activity is not a VAT enterprise and you cannot register.
- You cannot reclaim VAT on furnishings, cleaning or platform fees — it is part of your cost.
Must register with SARS for VAT when 12-month taxable supplies pass R2.3 million
VAT Vendor (Voluntary or Compulsory)
Charge 15% VAT; claim input VAT on business costs
- Voluntary registration is possible above R120,000; compulsory above R2.3 million from 1 April 2026.
- Add 15% VAT to stays and submit VAT201 returns for each tax period.
- For stays of more than 28 days at an all-inclusive rate, VAT is charged on only 60% of the charge.
- Useful when guests are VAT-registered businesses or you are fitting out several units and want the input VAT back.
No upper limit — once registered, 15% VAT applies to every taxable stay
Depreciation
Wear-and-Tear Allowances for South African Holiday Lets
Individuals cannot depreciate a residential building they let. What you can claim is the section 11(e) wear-and-tear allowance on movable assets, using SARS's write-off periods.
| Asset | Typical write-off period | Notes |
|---|---|---|
| The dwelling itself | Not claimable | Section 11(e) gives no allowance for buildings or other permanent structures. |
| Furniture, fittings & kitchen equipment | 6 years | SARS write-off period (Interpretation Note 47, BGR 7). |
| Television sets & decoders | 6 years | Same 6-year period as furniture in the BGR 7 table. |
| Mobile air conditioners & motor mowers | 5 years | Window-type air conditioners use 6 years. |
| Personal computers | 3 years | E.g. a laptop used to run bookings. |
Start the allowance when the asset is first used for letting and keep a fixed-asset register. Linen and bedding are not in the SARS table, so use a reasonable useful life.
Allowances claimed come back into income as a recoupment if a furnished asset is sold above its tax value. A gain on the property is a capital gain: the 2027 tax year annual exclusion is R50,000 and the maximum effective CGT rate for individuals is 18%. A dedicated holiday let does not qualify for the R3 million primary-residence exclusion.
VAT, TOMSA & Property Rates
VAT, the TOMSA Levy and Municipal Rates Nationwide
South Africa has no national occupancy tax or lodging tax. What reaches the guest's bill is VAT if you are a vendor and the TOMSA levy if you participate; municipalities rely on property rates instead.
What a VAT-registered, TOMSA-participating host adds to a vacation rental bill:
0–16%: 15% VAT if registered (9% effective on long stays), plus 1% TOMSA if you participate
SARS — Register for VAT; VAT 411 Guide (sars.gov.za); TOMSA — Levy FAQ (tomsa.co.za); Local Government: Municipal Property Rates Act 6 of 2004
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Stay booked through any platform, host not a VAT vendor | No one — no VAT or bed tax is due on the rate | Declare the full rental on your ITR12; claim platform fees as an expense |
| Stay booked by a VAT vendor | You, as vendor — 15% output VAT declared on the VAT201 | Keep valid tax invoices so you can claim input VAT |
| Host participating in TOMSA | You collect 1% and remit it to the Tourism Business Council of South Africa within 15 days of month-end | Record the levy as a liability — it is not rental income |
Property rates are an owner's expense, not a guest charge. Under the Municipal Property Rates Act, each municipality may levy different rates for categories such as residential and business and commercial property, determined by actual or permitted use — ask your municipality how it rates properties used for short-term letting.
Platforms
How Airbnb, Booking.com & Vrbo Handle South African Taxes
Airbnb tax in South Africa stays with the host: Airbnb does not collect VAT or any levy on South African stays, but SARS can request transaction data from platforms.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Must give SARS a limited amount of transaction data when requested | No — Airbnb lists no South African jurisdiction for tax collection; it adds VAT only to its own host fee | Earnings summary in your host account |
| Booking.com | Declare every payout yourself | No — any VAT or TOMSA levy is the host's to charge | Monthly invoices and payout statements in the Extranet |
| Vrbo | Declare every payout yourself | No — the host handles VAT if registered | Payout history in the owner dashboard |
| Letting agents & direct bookings | Agent statements show gross rent and commission | You, or the agent on your behalf if agreed | Agent statements plus your own ledger |
Listing on Several Platforms?
SARS looks at the combined value of your taxable supplies, so a host earning R1.5 million on Airbnb and R900,000 on Booking.com is over the R2.3 million VAT threshold even though neither platform is. Include agent and direct bookings too.
No DAC7 in South Africa — SARS Can Ask the Platform
The EU's DAC7 rules do not cover South African listings. Airbnb states that SARS may request data on specific taxpayers and that Airbnb is legally required to provide a limited amount of transaction data, so your ITR12 should reconcile to your platform earnings.
Airbnb Help Center — Where Airbnb collects and remits taxes (article 2509); Responsible hosting in South Africa (article 3009); VAT on service fees (article 436)
Illustrative P&L — Garden Route Holiday Cottage (Not VAT-Registered, R)
Example only: a cottage let 180 nights at R1,800, no private use, host's salary already in the 31% bracket (R383,101–R530,200, 2027 tax year). Not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
SARS can compare your ITR12 and VAT201 returns with platform data and your bank statements. Keep records that prove income, every deduction and how the property was used.
| Keep | How long | Why |
|---|---|---|
| Platform and agent statements, booking calendar | 5 years from submission | Proves gross income and supports any private-use apportionment |
| Expense invoices, rates accounts and bond statements | 5 years from submission | Supports each deduction claimed against the rent |
| Fixed-asset register for furniture and appliances | 5 years from submission | Shows cost, date first let and allowances claimed per item |
| IRP6 calculations and payment confirmations | 5 years from submission | Shows your provisional estimates were reasonable |
| VAT201 returns, tax invoices and TOMSA remittances (if applicable) | 5 years from submission | Proves output VAT, input VAT claims and levy paid over |
The five-year clock runs from the date each return is submitted, so a 2027 ITR12 filed in January 2028 means keeping its records until January 2033.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
National summary based on SARS, TOMSA, the Municipal Property Rates Act and Airbnb's official help pages, checked in September 2026. Municipal rules differ; see our city pages. Amounts in South African rand.
- SARS — Rates of tax for individuals — 2027 tax year: 18%–45%; 31% band R383,101–R530,200. sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/
- SARS — Register for VAT; new VAT threshold FAQ — R2.3 million compulsory from 1 April 2026, R120,000 voluntary, commercial accommodation rule, 21 business days. sars.gov.za/types-of-tax/value-added-tax/register-for-vat/
- SARS — VAT 411 Guide for Entertainment, Accommodation and Catering — Commercial accommodation; 60% rule for stays over 28 days. sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-VAT-G04-VAT-411-Guide-for-Entertainment-Accommodation-and-Catering.pdf
- SARS — Filing Season 2026; Provisional tax — 22 January 2027 and 23 October 2026 deadlines; IRP6 periods; optional third payment. sars.gov.za/types-of-tax/provisional-tax/
- SARS — Tax on rental income; record-keeping FAQ — Deductions, apportionment, codes 4210/4211; keep records 5 years. sars.gov.za/types-of-tax/personal-income-tax/tax-on-rental-income/
- SARS — Interpretation Note 47 and Budget 2026 FAQs — Wear-and-tear periods; R50,000 CGT exclusion, R3m primary residence, 18% max effective CGT. sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/
- TOMSA — Levy FAQ — 1% levy, voluntary for businesses, remitted monthly within 15 days. tomsa.co.za/levy-faq/
- Municipal Property Rates Act 6 of 2004 — Section 8 rate categories by use or permitted use. gov.za/sites/default/files/gcis_document/201409/a6-04.pdf
- Airbnb Help Center — articles 2509, 3009 and 436 — Not on collect-and-remit list; SARS data requests; VAT on service fees. airbnb.com/help/article/3009
Questions
Frequently Asked Questions — South Africa STR Taxes
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