What are all the property taxes and fees in Durban?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Everything you need to know before buying real estate is included in our South Africa Property Pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Durban. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the South African real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Durban, Cape Town, and Johannesburg. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What is the current property rates percentage charged by the eThekwini Municipality on residential properties in Durban?

The eThekwini Municipality charges residential property owners 0.925 cents per rand of their property's municipal valuation as of September 2025.

Primary residence owners benefit from the first R105,000 of their property value being exempt from municipal rates. This exemption significantly reduces the tax burden for lower-value properties and first-time homeowners in the Durban area.

For a practical example, if you own a residential property valued at R3,000,000 by the municipality, your annual rates would be calculated as follows: (R3,000,000 - R105,000) × 0.00925 = R26,787 per year, or approximately R2,232 per month. This rate applies consistently across all residential zones within the eThekwini Municipality boundaries.

The municipality updates these rates annually through council resolutions, typically effective from July each year. Property valuations are reassessed every four years through a general valuation roll, which can significantly impact your rates if property values have increased in your area.

What is the rate charged on commercial and industrial properties in Durban, and how does it compare with residential?

Commercial and industrial properties in Durban pay substantially higher municipal rates at 1.85 cents per rand of municipal valuation, exactly double the residential rate.

This differential rate structure follows South African municipal regulations that cap commercial rates at a maximum 2:1 ratio compared to residential rates. The higher commercial rate reflects the increased municipal services and infrastructure demands that business properties typically require.

Using the same R3,000,000 property example, a commercial property would pay R3,000,000 × 0.0185 = R55,500 annually in municipal rates, compared to R26,787 for a residential property of identical value. This R28,713 difference represents a significant ongoing cost that investors must factor into commercial property investment calculations.

Unlike residential properties, commercial and industrial properties do not receive any exemption on the first portion of their valuation. The full assessed value is subject to the 1.85 cents per rand rate from the first rand of valuation.

It's something we develop in our South Africa property pack.

What fixed municipal service charges apply each month, like refuse removal or sanitation, and how much are they?

Property owners in Durban face several mandatory monthly municipal service charges that are applied regardless of usage levels.

Refuse removal constitutes the largest fixed charge at R423 per month for standard residential properties. This fee covers weekly household waste collection, recycling services, and municipal waste management infrastructure maintenance across the eThekwini Municipality area.

Sanitation and sewerage services cost R180 per month for properties valued above R250,000. Properties below this valuation threshold pay reduced sanitation charges on a sliding scale. This flat fee covers sewerage treatment, maintenance of sewerage infrastructure, and municipal sanitation services.

Additional fixed charges may include administrative fees, meter reading charges, and infrastructure maintenance levies ranging from R30 to R70 monthly depending on the specific services connected to your property. These smaller charges can accumulate to R100-200 monthly for fully serviced properties.

The total fixed municipal service charges for a typical residential property therefore range from R603 to R673 monthly before any usage-based charges for electricity and water consumption.

What are the average monthly electricity connection and usage fees set by the municipality for homeowners?

Durban homeowners face both connection fees and ongoing usage charges for municipal electricity supply through the eThekwini Municipality.

Service Type	Cost Range	Details
Basic Connection Fee	R471	Minimum charge for standard homes
New Single-Phase Connection	Up to R17,000	Full new installation with infrastructure
Monthly Network Charge	R80-120	Proposed infrastructure maintenance fee
Usage Block 1 (0-600 kWh)	R2.86 per kWh	Lower consumption tier
Usage Block 2 (Above 600 kWh)	R4.51 per kWh	Higher consumption tier
Average Monthly Bill	R600-1,000	Typical domestic user consumption
Heavy Usage Monthly	R1,000+	Large homes with high consumption

What are the monthly water and sewerage charges, and how are they calculated?

The eThekwini Municipality uses a stepped block tariff system for water charges that increases with higher consumption levels, encouraging conservation while keeping basic needs affordable.

The water tariff structure operates across four consumption blocks: 0-6 kilolitres costs R7.15 per kilolitre, 6-10.5 kilolitres increases to R15.00 per kilolitre, 10.5-20 kilolitres jumps to R23.97 per kilolitre, and consumption above 20 kilolitres reaches R40.00 per kilolitre. This progressive pricing structure means heavy water users pay significantly more per unit than conservative users.

For an average household consuming 15 kilolitres monthly, the water bill calculation would be: (6 × R7.15) + (4.5 × R15.00) + (4.5 × R23.97) = R42.90 + R67.50 + R107.87 = R218.27. This amount rounds to approximately R226 per month for typical residential water consumption.

Sewerage charges apply as a flat monthly fee of R180 for properties valued above R250,000, regardless of water consumption levels. Lower-valued properties pay reduced sewerage charges on a sliding scale, ensuring affordability for lower-income households.

Combined water and sewerage costs for average residential properties therefore total around R406 monthly, though this can increase substantially for high-consumption households or properties with swimming pools and extensive gardens.

What once-off transfer duty fees are payable to SARS when buying a property in Durban, and how do they scale by purchase price?

Transfer duty represents one of the largest one-time costs when purchasing property in Durban, with rates scaling progressively based on the purchase price.

Properties valued at R1,210,000 or less pay no transfer duty, making entry-level properties more accessible to first-time buyers. This threshold covers many apartments and smaller homes in Durban's suburban areas.

The transfer duty structure escalates rapidly for higher-value properties: properties from R1,210,001 to R1,663,800 pay 3% on the amount above R1,210,000, properties from R1,663,801 to R2,329,300 pay R13,614 plus 6% above R1,663,800, properties from R2,329,301 to R2,994,800 pay R53,544 plus 8% above R2,329,300, and properties above R2,994,800 pay R106,784 plus 11% or more on the excess amount.

For a R2,500,000 property purchase, the transfer duty calculation would be: R53,544 + (R2,500,000 - R2,329,300) × 8% = R53,544 + R13,656 = R67,200. This substantial cost must be paid before property transfer can be completed and is typically funded from the buyer's own resources rather than mortgage financing.

Transfer duty rates are set nationally by SARS and apply uniformly across South Africa, including all Durban property transactions. These rates are reviewed annually and may be adjusted in the national budget.

What bond registration fees and legal costs should be budgeted for when financing a property with a bank?

Bond registration involves multiple legal and administrative fees that scale with your loan amount, creating substantial upfront costs for financed property purchases.

Bond registration attorney fees follow a sliding scale structure: a R650,000 bond typically costs R12,700 in attorney fees, while a R2,000,000 bond costs approximately R26,560. These fees cover the legal work required to register your mortgage bond with the Deeds Office and ensure the bank's security interest in the property.

The Deeds Office charges its own registration fee of around R1,098 for bonds between R1-2 million, paid through your transferring attorney. This government fee covers the administrative costs of recording your bond in the national property register.

Banks typically charge an initiation fee of R1,150 or according to their fee structure, covering the administrative costs of setting up your mortgage account and processing your loan application. Some banks may waive this fee during promotional periods or for premium clients.

Additional costs may include bond origination fees, valuation fees ranging from R2,000-5,000 depending on property value and complexity, and legal fees for reviewing bond documentation. The total bond registration costs for a R1,500,000 mortgage typically range from R18,000-25,000.

What conveyancing attorney fees are usually charged for property transfers in Durban?

Conveyancing attorney fees in Durban follow the Law Society of South Africa's sliding scale guidelines, ensuring consistent pricing across different legal practices.

For properties valued between R1-2 million, conveyancing fees typically range from R8,000 to R16,000, depending on the exact purchase price and complexity of the transaction. These fees cover all legal work required to transfer ownership from seller to buyer, including title deed preparation, municipal compliance verification, and Deeds Office registration.

The fee structure scales progressively with property value: lower-value properties around R1 million incur fees closer to R8,000, while properties approaching R2 million face fees nearer R16,000. Properties above R2 million continue on the sliding scale with gradually decreasing percentage rates but higher absolute amounts.

Additional charges apply for complex registrations involving multiple properties, cessions of rights, or unusual title conditions. These additional services typically cost R600-1,500 per action, as prescribed by Law Society guidelines.

Conveyancing attorneys also handle the payment of transfer duty, municipal rates clearances, and other transaction-related costs on behalf of buyers, providing a complete service package for property transfers. Their fees represent essential costs that cannot be avoided in any formal property transfer process.

It's something we develop in our South Africa property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What homeowners' association or body corporate levies typically apply in sectional title or gated community properties?

Sectional title properties and gated communities in Durban impose monthly levies that significantly increase your total ownership costs beyond municipal charges.

Monthly body corporate levies typically range from R1,000 to R2,500 for standard sectional title units, depending on the property size, building amenities, and common area maintenance requirements. Luxury developments with features like swimming pools, gyms, 24-hour security, and landscaped gardens command levies at the higher end of this range.

These levies are calculated based on your unit's participation quota, which represents your proportional share of the building's common property. Larger units and those with premium features typically carry higher participation quotas and correspondingly higher monthly levies.

Beyond monthly levies, owners face annual special assessments and reserve fund contributions for major building repairs, roof replacements, elevator maintenance, and building improvements. These capital contributions can range from R5,000-20,000 annually depending on the building's age and condition.

Gated communities may impose additional security levies, access control fees, and estate management charges that can add R500-1,000 monthly to your total levy obligations. The total cost of sectional title ownership often exceeds freehold property ownership costs by R12,000-30,000 annually.

What penalty interest or late payment charges are applied if municipal accounts are overdue in Durban?

The eThekwini Municipality applies severe penalty charges on overdue municipal accounts, making prompt payment essential for property owners.

Penalty interest accrues at approximately 15% per month on outstanding balances, compounding rapidly for accounts that remain unpaid. This exceptionally high rate means a R1,000 overdue balance grows to R1,150 after one month, R1,322 after two months, and continues escalating exponentially.

Additional flat penalty fees may apply for late payments beyond the percentage-based interest charges. These administrative penalties cover the municipality's collection costs and enforcement procedures, adding to your total debt burden.

Extended non-payment can result in municipal services being disconnected, including electricity and water supply to your property. Reconnection fees and deposits may be required to restore services after payment, creating additional costs beyond the penalty interest.

Property transfers cannot proceed without municipal rates clearances, meaning unpaid municipal debts must be settled with full penalty interest before any sale can be completed. This requirement makes penalty avoidance crucial for maintaining property marketability.

What valuation roll or reassessment fees may arise if an owner disputes the municipal property valuation?

Property owners who disagree with their municipal valuation can challenge it through formal objection processes, though this involves specific fees and procedures.

The initial objection to a municipal property valuation requires a non-refundable application fee of R601 paid to the eThekwini Municipality. This fee covers the administrative costs of reviewing your objection and conducting any necessary property inspections or valuation adjustments.

Vulnerable groups may qualify for fee exemptions under municipal policies designed to ensure access to the objection process regardless of financial circumstances. Pensioners, low-income households, and disabled property owners should inquire about available exemptions when filing objections.

If the municipality rejects your initial objection, further appeals to the Valuations Appeal Board require additional prescribed fees typically ranging from R600 to R1,000. This second-tier appeal process involves more formal procedures and expert testimony, justifying the higher fee structure.

Professional property valuations to support your objection typically cost R2,000-5,000 depending on property complexity and the need for detailed comparable property analysis. These independent valuations provide crucial evidence for successful objections but represent additional costs beyond the official fees.

Successful objections can result in significant long-term savings if your property's municipal valuation is reduced, as this directly reduces your annual municipal rates for the four-year valuation period.

What other smaller hidden costs, like compliance certificates or rates clearance fees, should a buyer or owner expect in Durban?

Property transactions in Durban involve numerous smaller fees that can accumulate to substantial amounts if not properly budgeted.

1. **Rates Clearance Certificate**: R535 per application for properties valued up to R1,000,000, required before any property transfer can proceed2. **Electrical Compliance Certificate**: R850-2,500 depending on property size and electrical system complexity, mandatory for most property sales3. **Beetle Certificate**: R500-1,000 for properties in KwaZulu-Natal where wood-boring beetle inspections are commonly required4. **Plumbing Certificate**: R500-1,500 if required by the sale agreement or municipal regulations5. **Building Plans Certificate**: R300-800 for verifying municipal-approved building plans match the existing structure6. **Municipal Search Certificate**: R200-400 for confirming municipal records and any encumbrances on the property7. **Advance Municipal Charges**: Several months of rates and utilities often required for rates clearance when selling

The electrical compliance certificate represents the largest of these hidden costs, particularly for older properties that may require electrical repairs to meet current safety standards before certification. Properties built before 1990 commonly need electrical upgrades costing R5,000-15,000 to achieve compliance.

Rates clearance certificates require settling all outstanding municipal debts, potentially including months or years of accumulated arrears with penalty interest. This requirement can create unexpected costs of R10,000-50,000 for properties with payment histories.

Legal endorsements, cessions, and taxations add R600-1,500 per action according to Law Society guidelines. Complex transactions involving multiple legal instruments can accumulate several of these charges, impacting your total transaction costs.

It's something we develop in our South Africa property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. eThekwini Municipality Property Rates Policy 2025-2026
2. RatesWatch - eThekwini Municipality Draft Tariffs
3. SARS Transfer Duty Rates
4. eThekwini Municipality Water and Sanitation Tariffs
5. eThekwini Municipality Electricity Connection Fees
6. Law Society Conveyancing Fee Guidelines
7. Etchells & Young Property Transfer Costs
8. VDM Law - Rates Clearance Certificate Requirements
9. LocalPros - Compliance Certificate Pricing
10. DA KZN - Property Valuation Query Fees