Estate Duty Calculator South Africa
Calculate inheritance tax with full breakdown — R3.5M abatement, spousal rollover, 2025/2026 rates
Market value at date of death
Three levels of detail — pick yours
Property + other assets + liabilities → estate duty after R3.5m abatement.
Full breakdown, spousal portable abatement, and estate liquidity check.
Life insurance, business interests, trust assets, executor fees, and trust planning impact.
How Estate Duty Works in South Africa
Estate duty is a tax levied on the estate (total assets) of a deceased person. It is administered under the Estate Duty Act 45 of 1955 and collected by SARS. The duty is charged on the dutiable amount of the estate — which is the net estate value after deducting liabilities, bequests to a surviving spouse, and the standard abatement.
The current abatement is R3.5 million per estate. Estates below this threshold pay no estate duty. The rate is 20% on the first R30 million of the dutiable estate and 25% on any amount above R30 million.
Key Deductions and the Spousal Rollover
Several important deductions reduce the dutiable estate:
- Liabilities and debts: All outstanding loans, bonds, taxes owed, and funeral costs are deductible.
- Bequests to surviving spouse: Any assets passing to a surviving spouse are fully deductible (s4(q) deduction). This can eliminate estate duty entirely in a first-dying spouse's estate.
- Section 4A abatement: Each estate gets a R3.5 million abatement. Critically, if the first spouse leaves everything to the surviving spouse, the unused abatement can be "rolled over" — meaning the surviving spouse's estate gets up to R7 million abatement.
- Approved public benefit organisations: Bequests to qualifying PBOs (charities) registered with SARS are deductible.
Estate Duty Formula
Net Estate = Gross Estate − Liabilities − Spouse Bequests
Dutiable Estate = Net Estate − Abatement (R3,500,000)
Duty = 20% × min(Dutiable Estate, R30M) + 25% × max(0, Dutiable Estate − R30M)
Worked Example
Mpho passes away with a gross estate of R8,000,000: his home (R4.5M), unit trusts (R2.5M), and a vehicle (R1M). He has an outstanding bond of R1,200,000. He is survived by his wife but bequeaths only R1,000,000 to her — the rest goes to his children.
Net estate: R8,000,000 − R1,200,000 (bond) − R1,000,000 (spouse bequest) = R5,800,000
Dutiable estate: R5,800,000 − R3,500,000 (abatement) = R2,300,000
Estate duty at 20%: R2,300,000 × 20% = R460,000
Effective rate on gross estate: R460,000 ÷ R8,000,000 = 5.75%
Frequently Asked Questions
What is the estate duty abatement for 2026 in South Africa?
The estate duty abatement for 2025/2026 is R3.5 million per deceased estate. Estates with a net dutiable value below R3.5 million pay no estate duty. If a surviving spouse inherits the entire estate, the abatement is portable — the surviving spouse can use up to R7 million abatement when they subsequently pass away.
Does a surviving spouse pay estate duty when the first spouse dies?
Assets bequeathed to a surviving spouse are fully deductible from the estate under the s4(q) deduction. This typically means no estate duty is payable on the first death if everything passes to the spouse. Estate duty is deferred until both spouses have passed.
Importantly, the unused abatement (up to R3.5M) can roll over to the surviving spouse's estate — effectively giving the survivor a combined R7M abatement.
Is property in a trust subject to estate duty?
Property held in a properly established inter vivos (living) trust generally falls outside the deceased estate and is therefore not subject to estate duty, because the trust — not the individual — owns the assets. However, SARS looks critically at trusts used solely for estate duty avoidance, and the loan account balance owed to the trust founder is included in the estate.
Estate planning using trusts requires professional legal and tax advice.
When must estate duty be paid to SARS?
Estate duty must be paid within 12 months of the date of death. After that, interest is charged. The executor of the estate (appointed by the Master of the High Court) is responsible for filing the estate duty return (Form Rev267) and settling the duty before distributing the estate to heirs.
What is the difference between estate duty and capital gains tax on death?
Estate duty is a wealth transfer tax on the total value of the estate above the abatement. Capital gains tax (CGT) on death treats the deceased as having disposed of all assets on the date of death at market value — triggering CGT on any capital gain (after the annual R40,000 exclusion and R2M primary residence exclusion). Both may apply simultaneously to an estate. The CGT liability becomes a debt of the estate, which further reduces the dutiable estate for estate duty purposes.