Cape Town homeowners are being urged to look beyond the city’s claims of municipal rates relief under the new budget. While the city has promised that most households would either pay less or see no change in tariffs, civil society activists say rising property valuations could push homeowners to collectively pay nearly R1 billion more in rates in 2026.

The city stated that around 60% of properties would benefit from a revised rates calculation aimed at offsetting the impact of increasing property values. However, critics caution that such measures may not adequately protect lower-income households.

Professor Zwelinzima Ndevu, a municipal law expert from Stellenbosch University, emphasised that affordability must remain the guiding principle. “They ensure that they do not collect revenue or charge in such a way that would make their citizens struggle and not be able to pay for the services,” he said.

Activist Natasha Gertze highlighted concerns over fixed tariffs, which apply equally to high- and low-income households regardless of actual usage. She explained that many lower-income homes lose access to rates relief once their property crosses certain valuation thresholds. “With the valuation, if your property is valued at R500,000, you are paying for water, you’re paying for electricity on the domestic tariff, which means you don’t get free units, you don’t get free water,” Gertze said.

The city maintains that lower- and middle-income households still benefit, with homes of smaller market value paying less overall. Residents are encouraged to review their municipal statements carefully to understand how the new rates calculations affect their specific situation and to plan for potential increases in 2026.