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As of 1 July 2026, Cape Town homeowners can expect changes to the way municipal charges are calculated following the City's revised budget proposals. The most notable adjustment is that fixed water and sanitation charges will once again be determined by water meter size rather than property value. Depending on your property's valuation and meter category, this could either reduce or increase portions of your monthly account.
To help ease the impact on residents, the City has expanded rates relief for homeowners. The rates-exempt portion of residential property values is set to increase from R450,000 to R620,000, while qualifying properties with values up to R8 million will now benefit from this relief. Pensioners also remain protected under the City's rebate programme, with the household income threshold unchanged at R27,000 per month.
Because the changes affect households differently, property owners are encouraged to review their July municipal statements carefully. Charges may shift across various line items, making it important to understand the overall impact on your property. If you'd like guidance on your property's market value, municipal valuation, or how these changes may influence your investment, connect with one of our area specialists by clicking the button below.
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