Authored by the expert who managed and guided the team behind the Johannesburg Property Pack
Yes, the analysis of Johannesburg's property market is included in our pack
Property taxes and fees in Johannesburg include municipal rates calculated on your property's valuation roll value, utility charges, transfer duties, and various administrative costs.
Understanding these expenses is crucial for property investors and homebuyers, as they can significantly impact your total cost of ownership and monthly budget in South Africa's largest city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Johannesburg, based on reliable facts and data, not opinions or rumors.
Municipal rates in Johannesburg are calculated at 0.009126 rate-in-the-rand on property values above R200,000, with additional fixed charges for refuse removal, sewer, and utilities.
Transfer costs including attorney fees, transfer duty, and compliance certificates typically range from R50,000 to R80,000 for a R2 million property purchase.
| Cost Category | Monthly Amount (R) | One-time Amount (R) |
|---|---|---|
| Municipal Rates (R1.5M property) | 989 | - |
| Refuse Removal | 150-450 | - |
| Sewer Basic Charge | 704 | - |
| Electricity Prepaid Surcharge | 200 | - |
| Transfer Attorney Fees | - | 24,000-28,000 |
| Bond Registration Fees | - | 24,000-28,000 |
| Compliance Certificates | - | 1,200-4,500 |
What is the current municipal valuation for properties in Johannesburg and how are rates calculated?
The City of Johannesburg calculates property rates using the municipal valuation listed on the General Valuation Roll (2023) or Supplementary Roll 2 (2025).
This valuation roll determines your property's official value for tax purposes and remains valid for 4 years unless amended through supplementary rolls due to property changes or successful objections. You can check your property's municipal valuation through the city's e-Services portal or official website.
Municipal valuations for typical Johannesburg houses currently average between R1.5 million and R2 million, though your actual municipal value must be verified on the city's official platform. The valuation roll serves as the foundation for all rate calculations, and objections to incorrect valuations are limited to official objection periods with strict deadlines.
As of September 2025, the rate-in-the-rand for residential properties in Johannesburg is 0.009126, applied to the municipal value minus a R200,000 universal exemption threshold.
How much will I pay in annual rates for my Johannesburg property?
Johannesburg residential property owners pay rates based on a simple calculation using the 2025 rate-in-the-rand of 0.009126.
The formula is: Annual Rates = (Municipal Value - R200,000) Ă— 0.009126. This means only the value above R200,000 is subject to rates, providing relief for lower-value properties.
For example, if your property has a municipal valuation of R1.5 million, your calculation would be: (R1,500,000 - R200,000) Ă— 0.009126 = R11,864 per year, or R988.67 per month. A R2 million property would generate rates of (R2,000,000 - R200,000) Ă— 0.009126 = R16,427 annually, or R1,369 monthly.
Additional rebates may further reduce your rates bill. Pensioners aged 60-69 with income below R20,404 receive 100% rebate on properties valued up to R1.5 million, while pensioners aged 70 and above receive 100% rebate on properties up to R2 million regardless of income.
It's something we develop in our Johannesburg property pack.
What are the fixed monthly municipal charges I need to budget for?
Several fixed municipal charges appear on your monthly rates bill regardless of actual consumption levels.
| Service | Monthly Cost (R) | Description |
|---|---|---|
| Refuse Removal | 150-450 | Based on property size and service level |
| Sewer Basic Charge | 704.47 | Per residential unit |
| Water Basic Charge | 0 | First 6 kL usually included free |
| Electricity Prepaid Surcharge | 200 | R70 service fee + R130 network capacity |
| CSOS Levy | 40 | For properties valued above R500,000 |
| Total Fixed Charges | 1,094-1,394 | Excluding variable usage costs |
What are the current water and electricity tariffs in Johannesburg?
Johannesburg uses stepped tariff structures for both water and electricity, meaning higher usage results in progressively higher per-unit costs.
Water tariffs for residential properties start with the first 6 kiloliters free each month. Usage between 6-10 kL is charged at R26.20 per kiloliter. Beyond 10 kL, progressively higher tiered rates apply, encouraging conservation through price incentives.
Electricity charges include a monthly prepaid surcharge of R200 (comprising R70 service fee and R130 network capacity charge) regardless of consumption. Variable electricity costs are calculated on tiered usage bands, with exact step brackets confirmed on the city's current tariff schedule.
For budgeting purposes, a typical household using 15 kL of water monthly would pay: free for first 6 kL, plus (4 kL Ă— R26.20) = R104.80 for the 6-10 kL band, plus higher rates for the remaining 5 kL based on current stepped brackets.
What utility deposits and connection fees should I expect when opening accounts?
New property owners must pay once-off deposits and connection fees to establish utility accounts with City Power and Johannesburg Water.
City Power typically requires deposits ranging from R2,500 to R4,000 for residential properties, with the exact amount depending on property size and meter type. This deposit is refundable when closing the account, provided there are no outstanding amounts.
Johannesburg Water deposits range from R800 to R2,500, with fee structures varying based on property type and expected consumption patterns. These deposits serve as security against unpaid bills and are also refundable upon account closure.
Connection fees are separate from deposits and cover the cost of establishing new service connections. You should verify current deposit and connection fee schedules directly with the utilities or city customer service centers, as these amounts are subject to annual adjustments.
Don't lose money on your property in Johannesburg
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much transfer duty will I pay to SARS on my property purchase?
SARS transfer duty in 2025 exempts the first R1,100,000 of any residential property purchase, providing significant savings for most buyers.
Transfer duty is calculated on progressive brackets above the exemption threshold. For properties priced between R1,100,001 and R1,375,000, you pay 3% on the excess amount. Properties between R1,375,001 and R1,925,000 attract 6% on that portion, with higher rates applying to more expensive properties.
For example, purchasing a R2 million property would result in transfer duty calculated as follows: R0 on the first R1,100,000 (exempt), 3% on R275,000 (R1,100,001 to R1,375,000) = R8,250, plus 6% on R625,000 (R1,375,001 to R2,000,000) = R37,500, totaling R45,750.
You can use the SARS online transfer duty calculator to determine exact amounts for your specific purchase price. First-time homebuyers should verify if any additional exemptions or rebates apply to their situation.
What are the total conveyancing and transfer costs for my property purchase?
Transfer attorney fees and related costs form a significant portion of your property purchase expenses in Johannesburg.
Attorney fees are scaled based on purchase price, typically ranging from R24,000 to R28,000 plus 15% VAT for a R2 million property. These fees cover legal work, document preparation, and liaison with all parties involved in the transfer process.
Additional costs include the Deeds Office fee of approximately R4,800 for properties above R1 million, plus disbursements covering postage, certificates, and administrative expenses ranging from R2,000 to R3,500. The total conveyancing cost for a R2 million property typically falls between R30,000 and R37,000 plus VAT.
These costs are payable to your conveyancing attorney and must be budgeted as upfront expenses. The attorney will provide a detailed cost estimate based on your specific purchase price and circumstances before proceeding with the transfer.
What bond registration fees will I pay if taking a home loan?
Home loan registration requires separate legal processes and fees in addition to your transfer costs.
| Fee Type | Amount (R2M Bond) | Description |
|---|---|---|
| Attorney Fees | 24,000-28,000 | Plus 15% VAT |
| Deeds Office Fee | 2,800 | Bond registration |
| Bank Initiation Fee | 6,000-8,000 | One-time charge |
| Bank Monthly Service | 69-120 | Ongoing monthly fee |
| Total One-time Costs | 32,800-38,800 | Excluding VAT on attorney fees |
What rates clearance costs should I budget for property transfer?
The seller must obtain a rates clearance certificate from the City of Johannesburg before transfer can proceed.
Rates clearance requires payment of municipal rates and services for at least three months in advance, with amounts typically ranging from R4,000 to R8,000 depending on the property's monthly charges. This ensures the municipality receives payment regardless of any delays in the transfer process.
The clearance certificate itself costs up to R600 and must be obtained from the city before the transfer attorney can complete registration. This certificate confirms that all municipal accounts are current and no outstanding amounts remain.
The seller bears these costs upfront, though they may negotiate with the buyer to recover some portion through the sale agreement. These amounts are usually factored into the final settlement calculations between parties.
It's something we develop in our Johannesburg 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 monthly levies apply to sectional title and estate properties?
Sectional title schemes and residential estates charge monthly levies to cover shared expenses and community services.
Body corporate or homeowners association (HOA) levies typically range from R1,000 to R3,000 per month, depending on the scheme's amenities, size, and management requirements. These levies cover maintenance of common areas, security, insurance, and administrative costs.
All properties valued above R500,000 must pay a monthly CSOS (Community Schemes Ombud Service) levy of R40, which funds the regulatory body overseeing sectional title schemes. This levy applies regardless of whether you live in a sectional title property or freehold house.
Special levies may be imposed periodically for major repairs, upgrades, or emergency expenses, typically ranging from R500 to R1,500 per month when declared. Always review the scheme's financial statements and recent levy history before purchasing to understand potential future costs.
What compliance certificates are required and who pays for them?
Several compliance certificates are mandatory for property transfer in Johannesburg, with costs typically borne by the seller.
1. **Electrical Certificate of Compliance**: Mandatory for all properties, costing R1,200 to R2,200 per inspection, paid by the seller2. **Electric Fence Certificate**: Required if installed, ranging from R900 to R1,800, seller's responsibility3. **Gas Certificate**: Necessary if gas installations exist, costing R850 to R1,500, paid by the seller4. **Plumbing Certificate**: May be required for certain properties, costs vary based on complexity5. **Building Plans Approval**: Ensuring all structures comply with approved plans, fees depend on municipal requirementsThese certificates ensure the property meets safety standards and municipal regulations. If inspections reveal non-compliance issues requiring repairs, the costs are typically negotiated between buyer and seller as part of the sale agreement.
The seller must provide valid certificates to the transfer attorney before registration can proceed. Expired certificates must be renewed, adding to the total compliance costs.
What ongoing and exit costs should I budget for property ownership?
Property ownership in Johannesburg involves several ongoing monthly expenses and potential exit costs when selling.
Building insurance typically costs R120 to R400 per month for standard residential properties, providing cover against fire, theft, and structural damage. Security services or armed response subscriptions range from R350 to R700 monthly, depending on the service level and response guarantees.
When selling your property, estate agent commission is typically 5% of the sale price plus VAT, representing a significant exit cost. For a R2.5 million sale, this would amount to R125,000 plus R18,750 VAT, totaling R143,750.
Capital gains tax applies to investment properties or non-primary residences, calculated at a 40% inclusion rate applied to your marginal tax rate on gains above R2 million (if the property was your primary residence). Proper record-keeping of purchase price, improvements, and selling costs is essential for accurate calculations.
It's something we develop in our Johannesburg 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.
Understanding all property taxes and fees in Johannesburg is crucial for making informed investment decisions and budgeting accurately for your purchase.
These costs can add 10-15% to your total property acquisition cost, making proper planning essential for successful property investment in South Africa's economic hub.
Sources
- City of Johannesburg - Valuation Roll
- OUTA - City of Johannesburg Projects
- Marder Attorneys - CoJ Supplementary Roll
- City of Johannesburg Rates Policy 2024-2025
- Egoli Jozi News - Pensioner Rebates
- The African Investor - Johannesburg Property Taxes
- HBG Schindlers - Pensioner Rebates 2025-2026
- HBG Schindlers - CoJ Supplementary Roll 2