Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified South Africa tax professional before filing.
Cape Town, South Africa · South Africa · Short-term rental taxes
Short-Term Rental Taxes in Cape Town, South Africa
Short term rental taxes in Cape Town: SARS taxes your Airbnb profit at your marginal rate, VAT registration is compulsory only above R2.3 million, TOMSA's 1% levy is voluntary, and busy listings face commercial rates.
The 30-Second Answer
- Short-term rental tax in Cape Town is mainly SARS income tax: rental profit is added to your other income and taxed at 18%–45% for the 2027 tax year (1 March 2026 – 28 February 2027).
- Short stays supplied regularly with domestic goods and services are generally commercial accommodation: a VAT enterprise once receipts exceed R120,000 a year, with compulsory 15% VAT registration only above R2.3 million (up from R1 million on 1 April 2026).
- The TOMSA tourism levy — 1% of the room rate — is collected by participating tourism businesses on a voluntary basis. Airbnb does not list South Africa among the places where it collects tax for hosts.
- The City of Cape Town's draft Short-Term Letting By-law would require a City registration number on every listing, and properties available for more than 50% of room nights would move to commercial rates from 1 July 2027.
Deductions
What Cape Town STR Hosts Can Deduct
Expenses incurred in producing rental income are deductible against it. If you let only part of your home, apportion shared costs by the area let divided by the total floor area.
Not deductible: capital improvements, household contents insurance, bond insurance and the bond capital itself. If you let part of your home as a guest suite, SARS's apportionment is area let ÷ total area of the dwelling (SARS — Tax on rental income).
Filing Calendar
Key Dates & Filing Calendar
South Africa's tax year for individuals runs 1 March to the end of February. Most hosts with rental income are provisional taxpayers and file later but pay in advance.
Provisional taxpayers pay their first 2027 instalment by 31 August 2026 and can make an optional top-up payment by 30 September 2027 to limit interest on underpaid tax.
SARS — Filing Season 2026; Provisional tax (sars.gov.za); City of Cape Town — Short-Term Letting By-Law open for public comment (capetown.gov.za)
Tax Treatment
Income Tax Only vs. VAT-Registered Commercial Accommodation
Every Cape Town host pays income tax on rental profit. The big choice is VAT: below R2.3 million a year registration is optional, above it compulsory — and that changes your pricing.
Income Tax Only (Not VAT-Registered)
Declare the profit on your ITR12; charge no VAT
- Declare rental income and expenses in your ITR12 (source code 4210 for a profit, 4211 for a loss).
- Deduct rates, bond interest, levies, insurance, advertising, agent fees and repairs to the let area; apportion part-home lets by floor area.
- Losses can reduce other income unless section 20A ring-fencing applies — a risk for top-bracket earners unless at least 80% of the accommodation is let to non-relatives for at least half the year.
- Most hosts become provisional taxpayers and pay IRP6 instalments in August and February.
Compulsory VAT registration once taxable supplies exceed R2.3 million in any 12 months
VAT-Registered Commercial Accommodation
Charge 15% VAT and claim input VAT on costs
- Compulsory above R2.3 million of taxable supplies in 12 months; voluntary registration possible above R120,000.
- Charge 15% VAT on stays; for stays over 28 days at an all-inclusive rate, VAT applies to only 60% of the charge.
- Claim input VAT on cleaning, linen, furnishings and platform fees; file VAT201 returns.
- Commercial accommodation is not a VAT enterprise while those supplies stay at or below R120,000 a year.
No upper limit — VAT becomes part of your nightly price
Depreciation
Wear-and-Tear for Cape Town STR Properties
South Africa has no general depreciation allowance for a residential building owned by an individual host. The section 11(e) wear-and-tear allowance covers movable assets such as furniture and appliances.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building (individual owner) | No allowance | Section 11(e) excludes buildings and other structures of a permanent nature. |
| Furniture & fittings | 6 years | Straight-line write-off period in SARS Interpretation Note 47 / BGR 7. |
| Fitted carpets & kitchen equipment | 6 years | Write-off periods accepted by SARS under BGR 7. |
| Curtains & removable security systems | 5 years | Shorter SARS write-off period for these items. |
| Personal computers (e.g. guest workstation) | 3 years | SARS BGR 7 write-off period. |
Keep an asset register with cost, date brought into use and write-off period. The allowance starts when the asset is brought into use for letting.
If you sell an asset for more than its tax value, the allowances claimed are recouped as income. Selling the property itself is a capital gain; from 2 March 2026 individuals get a R50,000 annual exclusion, and the R3 million primary-residence exclusion applies only to your own home.
VAT, Tourism Levy & Rates
VAT, the TOMSA Levy and Cape Town's Rates Plan
Cape Town has no municipal lodging tax or occupancy tax on guests. The guest-facing charges are VAT (only if you are registered) and the voluntary TOMSA tourism levy; the City's lever is property rates.
How much gets added to a guest's vacation rental bill depends on whether you are VAT-registered and whether you participate in TOMSA:
0–16%: 15% VAT if registered, plus 1% TOMSA if you opt in
SARS — Register for VAT; VAT 411 Guide (sars.gov.za); TOMSA — Levy FAQ (tomsa.co.za); City of Cape Town — Short-term letting FAQs
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking (host not VAT-registered) | Nobody — Airbnb does not collect tax for hosts in South Africa | Declare the gross payout plus fees deducted as income; claim the fees as an expense |
| Any booking (VAT-registered host) | You charge 15% VAT and pay it to SARS on your VAT201 | Price VAT into the nightly rate; keep tax invoices to claim input VAT |
| TOMSA participant | You collect 1% from guests and pay it to TBCSA monthly, within 15 days of month-end | Track levy collected separately from rent; it is pass-through money, not your income |
Property rates are the owner's cost, not a guest charge. Under the City's plan, a listing available for short-term letting for more than 50% of its annual room nights (bedrooms × 365) would be moved to business and commercial rates from 1 July 2027, using availability data from the proposed registration system.
Platforms
How Airbnb, Booking.com & Vrbo Handle Cape Town Taxes
Airbnb tax in Cape Town is the host's job: platforms do not collect VAT or a lodging levy for South African listings, and SARS can request your transaction data from them.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Provides limited transaction data to SARS on request | No — South Africa is not on Airbnb's tax collection list; VAT is charged on Airbnb's own host service fee | Earnings and transaction history in the host dashboard |
| Booking.com | SARS can request platform data — declare all income yourself | No municipal levy exists to collect; VAT (if registered) and TOMSA are yours to charge | Reservation and payout statements in the Extranet |
| Vrbo | SARS can request platform data — declare all income yourself | No municipal levy exists to collect; VAT (if registered) and TOMSA are yours to charge | Payout history in the owner dashboard |
| Direct bookings | No third-party report | You — VAT only if registered; TOMSA if you participate | Keep your own ledger and bank records |
Using Multiple Platforms?
Add Airbnb, Booking.com, Vrbo and direct income together when you test the R120,000 commercial-accommodation line and the R2.3 million compulsory VAT threshold — both look at your total taxable supplies over 12 months, not per platform.
No DAC7 in South Africa — SARS Data Requests Instead
DAC7 is an EU directive and does not apply to South African listings. Airbnb states it is legally required to give SARS a limited amount of transaction data on request, so assume SARS can see platform income and declare every booking.
Airbnb Help Center — Responsible hosting in South Africa (article 3009); Airbnb — Where Airbnb collects and remits taxes (article 2509)
Illustrative P&L — Cape Town Apartment (Not VAT-Registered, R)
Example only: one apartment let 200 nights at R1,500, no private use, not VAT-registered, 31% marginal rate (R383,101–R530,200 bracket, 2027 tax year). Not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
SARS can verify your ITR12 against platform data, and the City's proposed registration system will track listing availability. Keep records that prove income, expenses and use.
| Keep | How long | Why |
|---|---|---|
| Platform payout statements and booking records | 5 years from submission | SARS can obtain platform data and compare it with your return |
| Invoices for expenses, rates accounts and bond statements | 5 years from submission | Supports each deduction and the part-home floor-area split |
| Asset register for furniture and equipment | 5 years from submission | Backs wear-and-tear claims and recoupments on sale |
| VAT201 returns and tax invoices (if registered) | 5 years from submission | Proves output VAT charged and input VAT claimed |
| Calendar of nights available, booked and used privately | 5 years | Supports apportionment, s20A ring-fencing tests and the City's 50% availability threshold |
SARS requires supporting documents to be kept for five years from the date the return is submitted.
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
Educational summary based on SARS, City of Cape Town, TOMSA and platform sources checked in September 2026. Amounts in South African rand. Confirm with SARS or a registered tax practitioner before filing.
- SARS — Rates of tax for individuals — 2027 tax year brackets (18%–45%). sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/
- SARS — Register for VAT / new VAT threshold / Budget 2026 FAQs — R2.3m compulsory and R120,000 voluntary from 1 April 2026; 15% VAT. sars.gov.za/types-of-tax/value-added-tax/register-for-vat/
- SARS — VAT 411 Guide for Entertainment, Accommodation and Catering — Commercial accommodation, R120,000 threshold, 60% rule over 28 days. sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-VAT-G04-VAT-411-Guide-for-Entertainment-Accommodation-and-Catering.pdf
- SARS — Tax on rental income; Ring-fencing guide (s20A) — Deductions, floor-area apportionment, source codes 4210/4211; 80% test. sars.gov.za/types-of-tax/personal-income-tax/tax-on-rental-income/
- SARS — Filing Season 2026 and Provisional tax — 23 October 2026 / 22 January 2027 deadlines; IRP6 dates; R30,000 exemption. sars.gov.za/types-of-tax/personal-income-tax/filing-season/
- SARS — Interpretation Note 47 (wear-and-tear) — Write-off periods; buildings excluded. sars.gov.za/wp-content/uploads/Legal/Notes/LAPD-IntR-IN-2012-47-Wear-And-Tear-Depreciation-Allowance.pdf
- City of Cape Town — Short-Term Letting By-Law open for public comment; STL FAQs — Registration number, 50% availability test, commercial rates from 1 July 2027, comments to 5 October 2026. capetown.gov.za/Media-and-news/Short-Term%20Letting%20By-Law%20open%20for%20public%20comment
- TOMSA — Levy FAQ — 1% levy, voluntary participation, monthly remittance to TBCSA within 15 days. tomsa.co.za/levy-faq/
- Airbnb Help Center — Where Airbnb collects and remits taxes; Responsible hosting in South Africa — South Africa not on collection list; SARS data requests. airbnb.com/help/article/2509 and airbnb.com/help/article/3009
Questions
Frequently Asked Questions — Cape Town STR Taxes
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