Depreciation Calculator South Africa 2026
Calculate asset depreciation using SARS allowed methods
SARS allows different depreciation rates for different asset classes. Consult your tax advisor.
Frequently Asked Questions
What depreciation methods does SARS allow?
SARS allows straight-line depreciation under Section 11(e). Different asset classes have prescribed write-off periods: computers (3yr), vehicles (5yr), buildings (20-50yr).
Can I depreciate my car for tax?
Yes, but SARS caps vehicle depreciation. For passenger vehicles, only the first R480,000 of the purchase price can be depreciated (Section 11(e) read with Section 11(g)).
What is the depreciation rate for vehicles?
Vehicles are typically written off over 5 years (20% per year straight-line). However, the SARS limit of R480,000 applies to the cost that can be claimed.
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How the depreciation calculator works
Two methods, two very different answers. Straight-line takes the same amount every year; reducing balance takes a percentage of the remaining value, so the biggest loss happens early.
A R350 000 vehicle at 20% a year: straight-line leaves R87 500 after 5 years, while reducing balance leaves R114 688. The gap — R27 188 — is why the second-hand market prices cars on reducing balance.
The first year alone costs R70 000,00 under reducing balance, which is why driving a new car off the floor and selling it a year later is the most expensive year of ownership.
What changes the answer in South Africa
SARS allows wear-and-tear on assets used to produce income, but at prescribed rates and only on the cost, apportioned for part of a year — 20% a year on a vehicle over five years on the straight-line method. That tax allowance has nothing to do with market depreciation, which is what resale value follows.
Common questions about the depreciation calculator
Which method should I use for a car?
Reducing balance. Market values fall fastest in the first two years — R70 000,00 in year one on this example — and flatten afterwards.
Is depreciation a cash cost?
No, it is the loss of value, not money paid. But it is real: it is the difference between what you paid and what you can sell the asset for.
Does SARS depreciation match market value?
No. The tax allowance is a fixed 20% a year on cost; the market decides resale value. Claim the allowance, but budget on the market figure.