Property Depreciation Calculator
Calculate your annual tax depreciation allowance on investment property buildings under Section 13sex (residential rental) or Section 13quin (new commercial) of the Income Tax Act
10-Year Depreciation Schedule
| Tax Year | Deduction | Accumulated | Book Value | Tax Saving |
|---|---|---|---|---|
| 2026/2027 | R 60 000 | R 240 000 | R 960 000 | R 18 600 |
| 2027/2028 | R 60 000 | R 300 000 | R 900 000 | R 18 600 |
| 2028/2029 | R 60 000 | R 360 000 | R 840 000 | R 18 600 |
| 2029/2030 | R 60 000 | R 420 000 | R 780 000 | R 18 600 |
| 2030/2031 | R 60 000 | R 480 000 | R 720 000 | R 18 600 |
| 2031/2032 | R 60 000 | R 540 000 | R 660 000 | R 18 600 |
| 2032/2033 | R 60 000 | R 600 000 | R 600 000 | R 18 600 |
| 2033/2034 | R 60 000 | R 660 000 | R 540 000 | R 18 600 |
| 2034/2035 | R 60 000 | R 720 000 | R 480 000 | R 18 600 |
| 2035/2036 | R 60 000 | R 780 000 | R 420 000 | R 18 600 |
Based on 5% straight-line, Section 13sex. Tax saving at 31% marginal rate. Actual tax benefit depends on overall taxable income.
Understanding Property Depreciation in South Africa How it works • Sections 13sex & 13quin • Example
What is Property Depreciation (Wear and Tear)?
In South Africa, investors in qualifying rental and commercial properties may claim a capital allowance (commonly called "wear and tear" or depreciation) under the Income Tax Act. This is a tax deduction that reduces your taxable rental income each year — it is not a measure of the property's market value decline.
The two main sections for property buildings are:
- Section 13sex — residential units used for rental purposes. The allowance is 5% per year (straight-line) of the cost of the building (excluding land), over 20 years. The property must be new and unused when first brought into use by the investor.
- Section 13quin — commercial buildings first brought into use on or after 1 April 2007. Also 5% per year (straight-line) over 20 years. Again, must be new and unused when acquired.
The land component is never depreciable — only the building itself qualifies. A property valuer or the municipal valuation roll can help establish a defensible land-to-building split.
The Depreciation Formula
Tax Saving = Annual Allowance × Marginal Tax Rate
Accumulated = Annual Allowance × Years Elapsed
Book Value = Building Cost − Accumulated
The total allowance over 20 years equals 100% of the building cost. No further deductions are available after the building is fully written down.
Worked Example — Thabo's Rental Apartment
Thabo buys a new, unused apartment block in Johannesburg for R2,000,000. A registered valuer confirms the land value is R400,000, meaning the building cost is R1,600,000.
Under Section 13sex, Thabo may claim 5% × R1,600,000 = R80,000 per year as a tax deduction against his rental income.
At a marginal rate of 36%, his annual tax saving is R28,800 — or R576,000 over the full 20-year period.
When Thabo eventually sells, SARS may recoup previously claimed depreciation under Section 8(4)(a), taxing the recoupment at his marginal rate in the year of disposal.
Frequently Asked Questions
Can I claim depreciation on a second-hand property in South Africa?
Generally no. Both Section 13sex (residential) and Section 13quin (commercial) require the building to be new and unused when the investor first brings it into use. If you buy a second-hand property, the original owner may have already claimed some or all of the allowance, and the allowance does not transfer to the new owner. There are limited exceptions for certain government-approved housing schemes — consult a registered tax practitioner for your specific situation.
What is the difference between Section 13sex and Section 13quin?
Section 13sex applies to residential rental units — apartments, houses, or other dwellings let to tenants. The investor must use the property solely for rental; if they live there themselves, the allowance is reduced or disallowed.
Section 13quin covers commercial buildings (offices, warehouses, retail) first occupied on or after 1 April 2007. Both sections allow a 5% straight-line allowance over 20 years on new and unused buildings.
What happens to the depreciation when I sell the property?
When you sell a building on which you have claimed wear and tear, SARS may recoup the depreciation previously deducted under Section 8(4)(a) of the Income Tax Act. The recoupment is the lesser of the selling price or the original cost, minus the tax book value — and it is taxed as ordinary income at your marginal rate in the year of sale. This is separate from Capital Gains Tax on any profit above the original cost.
Can I include improvements in the depreciation base?
Yes. Capital improvements added to the building — such as extensions, structural alterations, or new roof replacement — are added to the depreciable base. Day-to-day maintenance and repairs are immediately deductible as business expenses and are not added to the base. The distinction between capital and revenue expenditure is important and may be queried by SARS.
How do I establish the land vs building split for depreciation?
SARS requires a reasonable and supportable allocation between land and building. Acceptable methods include: a registered property valuer's assessment, the municipal valuation roll (which often separates land and improvements), or the developer's cost certificate for new builds. Typically land represents 15–30% of total property value in urban areas, but this varies significantly by location.