City of Tshwane Rates and Taxes Calculator 2018
Calculate your property rates, service charges, and municipal taxes for the 2018 financial year
Your Estimated Municipal Charges (2018)
Comprehensive Guide to City of Tshwane Rates and Taxes (2018)
The City of Tshwane’s rates and taxes structure for the 2018 financial year (1 July 2017 – 30 June 2018) introduced several important changes that property owners needed to understand. This guide provides a detailed breakdown of how municipal charges were calculated, what rebates were available, and how to optimize your property-related expenses.
Understanding the 2018 Rates Policy
The Municipal Property Rates Act (Act 6 of 2004) governs how municipalities may levy rates on property. For 2018, Tshwane implemented the following key principles:
- Market-value based system: Rates are calculated as a percentage of the property’s market value as determined by the municipal valuer
- Differential rates: Different property categories (residential, commercial, industrial) have different rate percentages
- Rebate system: Qualifying property owners could receive reductions on their rates bills
- Service charges: Separate from rates, these cover actual consumption of services like water and electricity
Property Rates Calculation Method
The basic formula for calculating property rates in Tshwane for 2018 was:
Monthly Rates = (Property Market Value × Rate in the Rand) ÷ 12
Note: The “Rate in the Rand” varies by property category and any applicable rebates
| Property Category | 2018 Rate in the Rand | Monthly Calculation Example (R1.5m property) |
|---|---|---|
| Residential (Full Rate) | 0.00785 | R 981.25 |
| Residential (Small Holding) | 0.00550 | R 687.50 |
| Commercial | 0.01875 | R 2,343.75 |
| Industrial | 0.01625 | R 2,031.25 |
| Vacant Land | 0.00935 | R 1,168.75 |
Rebates and Reductions
The City of Tshwane offered several rebate options in 2018 to provide relief to qualifying property owners:
-
Pensioner Rebate:
- Available to property owners aged 60 years or older
- Rebate of 100% on rates for properties valued at R2 million or less
- For properties valued between R2m and R3m, a sliding scale rebate applied
- Required annual application with proof of age and income
-
Disability Rebate:
- Available to property owners with disabilities
- Similar structure to pensioner rebate but with different income thresholds
- Required medical certification of disability
-
Indigent Support:
- For households with combined income below R3,200 per month
- 100% rebate on rates for properties valued at R150,000 or less
- Free basic services (6kL water, 50kWh electricity per month)
Service Charges Breakdown
In addition to property rates, Tshwane municipality charged for services based on consumption and property characteristics:
| Service | 2018 Tariff Structure | Notes |
|---|---|---|
| Water |
|
Included free basic 6kL for indigent households |
| Electricity |
|
Plus R120 monthly service fee |
| Refuse Removal |
|
Mandatory for all residential properties |
| Sewer & Sanitation | R0.85 per kL of water consumed | Calculated as 85% of water charge |
Important Changes from 2017 to 2018
The 2018 financial year saw several notable adjustments from the previous year:
- Rate increases: Average 7.5% increase in property rates across all categories
- Water tariffs: 9.2% average increase to fund infrastructure upgrades
- Electricity surcharge: New R0.12/kWh environmental levy introduced
- Valuation roll: New property valuations came into effect, with many properties seeing increased values
- Indigent threshold: Income limit for free basic services increased from R3,000 to R3,200 per month
How to Dispute Your Valuation
If you believed your property was overvalued in the 2018 valuation roll, you had the right to lodge an objection. The process involved:
- Obtaining your valuation notice (sent by March 2018)
- Gathering evidence of comparable properties in your area
- Completing the objection form (available from municipal offices or website)
- Submitting with supporting documentation by the deadline (30 April 2018)
- Awaiting the valuer’s response (typically within 60 days)
- Appealing to the Valuation Court if dissatisfied with the outcome
Important: The objection period for the 2018 valuation roll closed on 30 April 2018. Any disputes after this date would only affect future valuation rolls.
Payment Options and Penalties
Tshwane offered several payment methods in 2018:
- Monthly installments: Due on the 15th of each month
- Annual payment: Due by 31 August 2017 (for the full year)
- Electronic payments: Via EFT, debit order, or at municipal pay points
- Online portal: Newly upgraded system for viewing statements and making payments
Late payments incurred:
- 2% interest per month (compounded)
- Possible legal action for accounts in arrears for 3+ months
- Restriction of municipal services for persistent non-payment
Comparing Tshwane to Other Major Municipalities
To provide context, here’s how Tshwane’s 2018 rates compared to other major South African cities:
| Municipality | Residential Rate (2018) | Water Tariff (first 10kL) | Electricity Tariff (first 600kWh) |
|---|---|---|---|
| City of Tshwane | 0.00785 | R18.47/kL | R1.72/kWh |
| City of Johannesburg | 0.00812 | R20.12/kL | R1.83/kWh |
| City of Cape Town | 0.00694 | R24.50/kL | R1.65/kWh |
| eThekwini (Durban) | 0.00745 | R17.89/kL | R1.58/kWh |
| Nelson Mandela Bay | 0.00875 | R19.33/kL | R1.91/kWh |
Tips for Reducing Your Municipal Bill
Property owners could employ several strategies to manage their rates and taxes more effectively:
-
Check your valuation:
- Ensure your property’s market value is accurate
- Compare with similar properties in your area
- Consider professional valuation if you suspect errors
-
Apply for rebates:
- Pensioners and disabled persons should always apply
- Check if you qualify for indigent support
- Submit applications before deadlines
-
Monitor water usage:
- Fix leaks promptly (a dripping tap can waste 30kL/year)
- Install water-efficient appliances
- Consider rainwater harvesting for garden use
-
Reduce electricity consumption:
- Switch to LED lighting
- Use geysers efficiently (install timers and blankets)
- Consider solar water heating (rebates were available)
-
Payment planning:
- Take advantage of early payment discounts if offered
- Set up debit orders to avoid late payments
- Consider paying annually if you have the means
Common Mistakes to Avoid
Many property owners made costly errors with their rates and taxes in 2018:
- Ignoring valuation notices: Failing to check or dispute inflated valuations
- Missing rebate applications: Not applying for eligible rebates before deadlines
- Underestimating consumption: Not tracking water/electricity usage leading to bill shock
- Late payments: Incurring unnecessary interest charges
- Not updating details: Failing to notify the municipality of ownership changes
- Disregarding by-laws: Illegal connections or tampering with meters resulting in penalties
Frequently Asked Questions
How often are properties revalued in Tshwane?
The Municipal Property Rates Act requires general valuations at least every 4 years. Tshwane conducted its most recent general valuation in 2017 (effective for the 2018 financial year). Supplementary valuations occur when properties are sold, improved, or subdivided.
Can I pay my rates in advance?
Yes, Tshwane allowed prepayments of rates. This could be particularly advantageous if you anticipated valuation increases or rate hikes in future years. Prepayments earned interest at a rate determined by the municipality (typically around 4% in 2018).
What happens if I don’t pay my municipal account?
Non-payment could lead to:
- Interest charges at 2% per month
- Restriction of municipal services
- Legal action including attachment of assets
- Listing with credit bureaus affecting your credit score
- In extreme cases, sale in execution of your property
If you’re struggling to pay, it’s better to contact the municipality to arrange a payment plan rather than ignoring the problem.
How are new developments assessed for rates?
New properties are assessed through supplementary valuations. The process involves:
- Municipal valuer inspects the property
- Market value is determined based on comparable sales
- Property owner receives a valuation notice
- Owner has 30 days to lodge objections
- Rates become payable from the date of occupation or completion
Are there any exemptions from paying rates?
Certain properties were exempt from rates in 2018:
- Public service infrastructure (roads, parks, etc.)
- Diplomatic properties
- Certain religious institutions
- Public benefit organizations (must apply for exemption)
- Government-owned properties used for public purposes
Exemptions are not automatic – eligible organizations must apply and meet specific criteria.
Official Resources and Contacts
For the most accurate and up-to-date information about City of Tshwane rates and taxes, consult these official sources:
- City of Tshwane Official Website – Primary source for all municipal information including rates policies and valuation rolls
- Tshwane Finance Department – Detailed information about payment options, tariffs, and account queries
- Municipal Property Rates Act (National Government) – The legal framework governing property rates in South Africa
For specific queries, you can contact the City of Tshwane:
- Customer Care: 012 358 9999
- Email: customercare@tshwane.gov.za
- Walk-in Centers: Various locations including Tshwane House (240 Madiba Street, Pretoria)
Disclaimer: While this guide provides comprehensive information about the City of Tshwane’s rates and taxes for 2018, it should not be considered official or legal advice. Always verify current information with the municipality and consult with a professional for specific financial or legal matters.