TAX SAVINGS CALCULATOR
Estimate how much tax you could save with a property investment using Section 13sex benefits.
Tax Savings Calculator
See how a rental property investment can reduce your personal income tax through allowable deductions under South African tax law.
How this calculator works:
When you own a rental property, SARS allows you to deduct expenses (bond interest, levies, rates, insurance, and building depreciation) against the rental income you receive. If your expenses exceed your rental income, you have a rental loss.
This rental loss is subtracted from your salary income, lowering your taxable income and reducing the tax you owe. The higher your marginal tax rate, the bigger the saving.
Your Income
Your total yearly salary or income before tax (from your IRP5 or payslip)
Your Marginal Tax Rate
36%
The tax rate applied to your highest bracket of income. This determines how much you save per rand of deduction.
Property Details
The full purchase price — used to calculate your Section 13sex depreciation deduction
Total rent received from your tenant over 12 months (monthly rent x 12)
Annual Property Expenses
Enter the yearly amounts you pay for each expense below. These are all deductible against your rental income.
Only the interest portion of your bond repayment (not the full instalment)
Body corporate / HOA fees for the complex or estate (per year)
Municipal rates and property taxes charged by your local council
Annual building insurance premium (not household contents)
Estimated Annual Tax Saving
R 27 900
R 2 325 per month back in your pocket
Section 13sex
R 27 500/yr
Total Deductions
R 173 500/yr
Rental Income
R 96 000/yr
Net Rental
-R 77 500/yr
Section 13sex — A SARS depreciation allowance: 55% of the purchase price of a new or unused residential property, spread over 20 years (2.75% per year). This is an additional deduction on top of your actual expenses.
Total Deductions — The sum of bond interest + levies + rates + insurance + Section 13sex depreciation. This is the total amount deductible against your rental income.
Rental Income — The total rent you receive from your tenant over 12 months.
Net Rental — Rental income minus total deductions. If this is negative, you have a rental loss that reduces your taxable salary — resulting in a tax refund. If positive, the profit is added to your taxable income.
How Section 13sex works: Section 13sex of the Income Tax Act allows you to deduct 55% of the cost of a new or unused residential property over 20 years (2.75% per annum). When your total property expenses (interest, levies, rates, insurance, and Section 13sex depreciation) exceed your rental income, the resulting rental loss reduces your taxable income, saving you tax at your marginal rate.
2024/2025 South African Tax Brackets
R0 – R237 100
18%
R237 101 – R370 500
26%
R370 501 – R512 800
31%
R512 801 – R673 000
36%
R673 001 – R857 900
39%
R857 901 – R1 817 000
41%
R1 817 001+
45%
Disclaimer: This calculator provides estimates based on the 2024/2025 SA tax brackets and should not be relied upon for tax planning. Consult a qualified tax professional for advice specific to your situation.
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