By Chantelle Gladwin-Wood (Partner),
and Karabo Kupa (Candidate Attorney)
14 August 2025
Ekurhuleni’s New Financial Year 2025/2026: What Residents Need to Know
INTRODUCTION
Each year, the Council reviews and adjusts municipal rates and service charges as part of its budget process. The 2025/2026 financial year for the City of Ekurhuleni Metropolitan Municipality (“the City of Ekurhuleni”) runs from 1 July 2025 to 30 June 2026. During this period, revised tariffs and charges will apply to a range of municipal services and new tariffs will come into operation in respect of rates and taxes. Residents should also take note of the updated Property Rates Policy, effective from 1 July 2025, as it impacts how rates are calculated, paid, and who qualifies for relief in respect of rates charges.
WHAT IS IN THE CITY’S RATES POLICY?
The City of Ekurhuleni has set specific rules for various different property categories for the upcoming financial year. The categories determined for different kinds of properties are linked to ratios (some of which are set by national government). These ratios are applied to ensure that there is a fair and ascertainable balance between the “spread” of rates charges across different kinds of property owners in South Africa. For example, business and commercial property owners will, on average, pay 2.5 to 3.5 times more for property rates, than residential property owners. The details of the ratios applied are set out in the municipality’s rates policy.
TARIFFS
The municipality also sets tariffs each year in its budget process, which are brought into effect on 1 July each year. These tariffs exist in two broad categories. The first category is just the tariffs (charges) for municipal services – like the cost of electricity, water, library book fines, reserving a grave site, parking in certain areas – anything at all that the municipality charges people for when providing services. These are subject to VAT where they are goods and services supplied by the municipality to customers. These tariffs are in the municipality’s proposed tariff document which is put out for public comments with the proposed budget.
The second category of tariffs relates specifically to property rates – this is a rate in the rand fraction, which is multiplied to the municipal valuation of the property to arrive at the amount of rates payable by the property owner in the financial year. When divided by twelve, this renders the monthly rates charge. This tariff (not being an amount of money per se but rather being a rate in the rand) is not subject to vat. Rates charges are also not subject to vat because they are not services provided – they are taxes, which are payable regardless of whether any services are provided or not. These types of tariffs are contained in the municipality’s tariff documents but are also usually incorporated into the rates policy.
APPLICABLE RATIOS FOR THE 2025/2026 FINANCIAL YEAR:
(Table extracted from Annexure E3 – Property Rates Policy of the City of Ekurhuleni Metropolitan Municipality)
| Category | Ratio | Rate in the Rand |
|---|---|---|
| Residential Properties | 1:1.00 | 0.01152 |
| Industrial Properties | 1:2.50 | 0.02881 |
| Business and Commercial Properties | 1:2.00 | 0.02305 |
| Agricultural Properties | 1:0.25 | 0.00288 |
| Municipal Properties | 1:200 | 0.02305 |
| Public Services Infrastructure Properties (PSI) | 1:0.25 | 0.00288 |
| Public Service Purpose Properties (PSP) | 1:2.00 | 0.02305 |
| Public Benefit Organisation Properties | 1:0.25 | 0.00288 |
| Mining and Quarries | 1:3.00 | 0.03456 |
| Vacant Land | 1:4.00 | 0.04608 |
HOW RATES ARE CALCULATED AND PAID
Property rates are payable by the owner of the property (or in certain limited cases, the registered long lease holder). For joint owners, the liability is joint and several. The annual levy is payable on a monthly basis in twelve (12) near equal installments, with the due date stipulated on the account sent to the ratepayer.
CHANGES IN POLICIES
The City reviews the terms of its policies, budgets and tariffs annually and implements increases to ensure the City’s operational continuity and the provision of services to all its customers. By “review”, what is meant is that the municipality looks at it and sees if changes are needed. If changes are proposed, they are part of the public participation process of approving the budget and all budget-related documents. After the time for public comment is closed, the municipality sits again to consider all the comments and make any final changes it needs to its policies, by-laws, budget and tariffs. It then publishes them and they become applicable (usually) from the first of July each year.
Because policies can change every year, any person who is expecting to receive a rebate, exemption or otherwise obtain any other benefit from the City of Ekurhuleni in terms of its tariffs, such as being approved as a pensioner or for the Indigent Support Programme, will need to check the new policies applicable from 1 July 2025 onwards to see whether a new application needs to be made for the new financial year, or whether there are any rule changes that would otherwise qualify or disqualify you from receiving that benefit.
RELIEF MEASURES, EXEMPTIONS, AND REBATES
The Council offers various relief measures (for cheaper charges, or exemption from having to pay charges) through exemptions, reductions, and rebates to specific categories of properties and owners, particularly considering indigent status, income sources, and social/economic conditions. These relief measures are determined annually and often need to be applied for frequently (every year, or every six months even). The list of rebates, exemptions and reductions pertaining to property rates can be found in the rates policy.
Other types of rebates, exemptions and reductions relating to other services (such as electricity and policy) could be found in the policies pertaining to those services (if there are such policies) or in the municipality’s tariffs.
CONCLUSION
Residents are encouraged to review the full Property Rates Policy for more details and to understand how these changes may affect them. For more information, access the full policy here: Annexure E3 – Property Rates Policy (PDF)
