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Section 13sex explained: the SA property allowance in 2026

How the 5% straight-line residential property allowance interacts with your marginal rate, and when it stops being worth the hassle.

Published 2026-04-12 · Updated 2026-05-01

What 13sex actually is

Section 13sex of the Income Tax Act lets the owner of at least 5 new and unused residential units deduct 5% of cost per year, straight-line, for 20 years. The deduction reduces taxable income directly, not capital gains.

On R10m of qualifying units, that's a R500k deduction every year — roughly R225k off your tax bill at the 45% marginal rate.

Run the numbers yourself

Stack 13sex with RA + TFSA in the Tax Engine

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FAQ

Does 13sex apply to a sectional-title development?

Yes, provided the units are new, unused, and the owner has at least five within a complex. Speak to a tax practitioner for the boundary cases.