Short-Term Rental Tax Calculator (Airbnb South Africa)

Calculate SARS income tax on Airbnb and Booking.com income, deductible expenses, VAT threshold, and compare STR vs long-term rental after-tax returns

SARS 2026/2027 tax brackets  ·  Updated April 2026  ·  VAT Act Section 12(c) • Section 11(a) deductions • Section 25B trust rules

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R
R
Net STR Income After Tax
R 179 628
R 14 969/month net
Gross STR Income
R 480 000
Total Deductible Expenses
R 188 000
Taxable STR Income
R 292 000
Marginal Tax Rate
41.0%
Tax Payable on STR
R 112 372
Net After Tax
R 179 628
SARS Rules: Short-term letting is treated as a "supply of services" (VAT Act Section 12(c)), not a passive rental. Expenses deductible under Section 11(a) of the Income Tax Act must be "in the production of income." If in a trust, Section 25B applies — beneficiary declared income. CGT on sale is the same as long-term rental property. Keep Airbnb/Booking.com statements as proof of income and occupancy for SARS.
How to Use This Calculator STR tax • Deductions • VAT • Comparison

STR Income Tax Tab

Enter your annual Airbnb or Booking.com gross income and all deductible expenses: cleaning fees, platform commissions (typically 15%), furniture costs (50% deductible in year 1 under R80,000), utilities apportioned to rental use, and internet costs. Also enter your other annual income (salary) so the calculator can determine your correct marginal tax rate for the STR income.

VAT warning: If your total taxable turnover from short-term letting approaches R1,000,000 per year, you must register for VAT. Short-term letting is treated as a "supply of services" (not a passive rental), making it VAT-able at 15%.

STR vs Long-Term Comparison Tab

Enter the same property's details for both strategies: the monthly long-term rental you could achieve versus the nightly Airbnb rate and expected occupancy. The calculator computes net after-tax income for each strategy and the break-even occupancy at which STR matches long-term rental return.

Worked Example

Lerato lets her Cape Town apartment on Airbnb. Annual gross income: R480,000. Expenses: cleaning R48,000 + platform fees R72,000 + utilities R36,000 + internet R12,000 + other R10,000 = R178,000. Her taxable STR income is R302,000.

With a salary of R600,000, her marginal rate is 41%. Tax on STR income: approximately R123,820. Net STR after tax: R178,180 (R14,848/month).

The same property could rent long-term at R15,000/month (R180,000/year). After 15% expenses and 41% tax on R153,000 taxable income: net ≈ R11,781/month. Lerato's STR is better by R3,067/month — but requires active management.

Frequently Asked Questions

Is Airbnb income taxable in South Africa?

Yes. Airbnb and all short-term rental income is fully taxable in South Africa and must be declared in your annual SARS tax return. It is treated as income from a "supply of services" rather than passive rental income, which has implications for both income tax (Section 11(a) expense deductions apply) and VAT (threshold R1,000,000 turnover). SARS has access to Airbnb platform data under international information exchange agreements.

When must I register for VAT on Airbnb income?

You must register for VAT when your total taxable turnover from short-term letting (and any other taxable supplies) exceeds R1,000,000 in any 12-month period. VAT registration is compulsory, not optional. Once registered, you must charge 15% VAT on your nightly rates, submit bi-monthly VAT returns, and pay net VAT to SARS — but you can also claim input VAT on expenses. Voluntary registration is possible from R50,000 turnover.

What expenses can I deduct from Airbnb income for SARS?

Under Section 11(a) of the Income Tax Act, expenses are deductible if incurred "in the production of income" and not of a capital nature. Deductible STR expenses include: cleaning fees, platform commissions, guest amenities (soap, toiletries), advertising, repairs and maintenance, bond interest (apportioned to rental days), municipal rates and levies (apportioned), buildings and contents insurance, and internet costs. Furniture can be deducted (50% in year 1 if under R80,000) or depreciated at 33.3% over 3 years for larger amounts.

Does capital gains tax apply when I sell my Airbnb property?

Yes. CGT applies to the sale of a short-term rental property the same way it applies to any investment property. The primary residence exclusion (R2,000,000 gain) is available only if the property was your primary residence — if it was exclusively used for Airbnb, no primary residence exclusion applies. The individual annual CGT exclusion (R40,000) always applies. The effective maximum CGT rate for individuals is 18% (45% marginal rate × 40% inclusion rate).

Are there Cape Town-specific rules for short-term rentals?

Yes. The City of Cape Town requires STR operators to register with the municipality under its short-term letting by-law. Properties in sectional title schemes must also comply with body corporate rules — many Cape Town sectional title schemes have banned or restricted Airbnb. Always check your body corporate conduct rules and your municipality's by-laws before listing. Johannesburg and Durban are developing similar regulations.

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