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Calculate your annual SARS tax deduction for owning 5 or more new residential rental units.
5% of building cost per year for 20 years — for investors with 5+ new residential units
* Section 13sex deductions are claimed annually in your income tax return. Consult a registered tax practitioner before claiming. SARS may require building cost documentation.
Enter your total building cost — this is the construction cost only, not the land or purchase price. Enter your marginal tax rate (45% is the top rate; check your SARS assessment if unsure). Enter the number of qualifying units and how many years you have already claimed.
You must have at least 5 units to qualify. The annual deduction is 5% of building cost. The annual tax saving is that deduction multiplied by your marginal rate. The calculator shows your remaining years and total tax saving still available to you.
Learn who qualifies, what costs are deductible, and common mistakes to avoid.
Common questions about this calculator
Section 13sex of the Income Tax Act allows South African property investors who own 5 or more new residential rental units to deduct 5% of the building cost from their taxable income annually for 20 years — effectively writing off 100% of the building cost over two decades.
You need at least 5 residential units to qualify. The units do not all need to be in the same development — they can be spread across different locations, provided each unit individually meets the new-build and residential rental requirements.
No. The Section 13sex allowance applies to the cost of erecting (building) new residential units, not the purchase price of existing properties. Purchasing a second-hand property does not qualify, regardless of how many units you own.
A unit that is vacant for extended periods may not qualify for the full deduction. The Act requires that the units be used for the purpose of producing rental income. Consult a registered tax practitioner if any of your qualifying units are temporarily vacant.