Transfer Duty Rates South Africa 2026
Transfer duty is a government tax on the purchase of fixed property in South Africa. Properties priced below R1,210,000 are fully exempt. Above this threshold, rates scale from 3% to 13%. Current brackets are effective from 1 April 2025.
Current Transfer Duty Brackets (2025/2026)
The brackets below are set by the South African Revenue Service (SARS) and adjusted annually in the Budget. The 2025/2026 brackets apply to transactions concluded from 1 April 2025.
| Property Value | Rate | Base Amount | Calculation Method |
|---|---|---|---|
| R0 – R1 210 000 | Nil | — | No duty payable |
| R1 210 001 – R1 663 800 | 3% | R0 | R0 + 3% of value above R1 210 001 |
| R1 663 801 – R2 329 300 | 6% | R13 614 | R13 614 + 6% of value above R1 663 801 |
| R2 329 301 – R2 994 800 | 8% | R53 544 | R53 544 + 8% of value above R2 329 301 |
| R2 994 801 – R13 310 000 | 11% | R106 784 | R106 784 + 11% of value above R2 994 801 |
| R13 310 001 and above | 13% | R1 241 456 | R1 241 456 + 13% of value above R13 310 001 |
Source: SARS — Effective 1 April 2025 per the 2025 Budget. Verified March 2026.
Transfer Duty Examples at Different Price Points
The following worked examples show the duty payable at common property price points and the effective tax rate relative to the full purchase price.
| Purchase Price | Duty Payable | Effective Rate | Notes |
|---|---|---|---|
| R900,000 | R0 | 0.00% | Below R1.21M threshold — no duty |
| R1,210,000 | R0 | 0.00% | Exactly at threshold — no duty |
| R1,500,000 | R8 700 | 0.58% | 3% on R290,000 above threshold |
| R1,663,800 | R13 614 | 0.82% | Top of 3% bracket |
| R2,000,000 | R33 798 | 1.69% | 6% bracket applies |
| R2,500,000 | R65 214 | 2.61% | 8% bracket applies partially |
| R3,000,000 | R109 576 | 3.65% | 11% bracket applies partially |
| R5,000,000 | R329 576 | 6.59% | 11% bracket applies |
| R10,000,000 | R879 576 | 8.80% | 11% bracket applies |
| R15,000,000 | R1 463 906 | 9.76% | 13% bracket kicks in above R13.31M |
Exemptions and Zero-Rate Properties
The following transactions are exempt from transfer duty regardless of price:
- VAT-inclusive transactions — if the seller is a VAT vendor and charges VAT on the sale (typically new developments and commercial property), transfer duty is not payable. The 15% VAT replaces it.
- Properties below R1,210,000 — the zero-rate threshold was increased from R1,100,000 to R1,210,000 in the April 2025 Budget, benefiting first-time buyers.
- Divorce or deceased estate transfers — transfers between spouses pursuant to a divorce order, or from a deceased estate to an heir, are generally exempt.
- Intra-company restructuring — qualifying corporate restructuring transactions may apply for a Section 9 exemption from SARS.
Who Pays and When
Transfer duty is paid by the purchaser, not the seller. The amount is calculated on the purchase price (or fair market value if higher). Payment is made by the conveyancing attorney to SARS on your behalf before the transaction is registered at the Deeds Office — typically within 6 months of the transaction date.
Late payment incurs a 10% penalty plus interest. In practice, the conveyancing attorney handles all submission and payment, so buyers rarely need to interact with SARS directly.
Previous Year Comparison
The zero-rate threshold has been progressively raised to support affordable housing:
| Tax Year | Zero-Rate Threshold | Change |
|---|---|---|
| 2025/2026 (current) | R1,210,000 | +R110,000 |
| 2024/2025 | R1,100,000 | +R100,000 |
| 2023/2024 | R1,000,000 | No change |
| 2022/2023 | R1,000,000 | No change |
| 2021/2022 | R1,000,000 | No change |
| 2020/2021 | R1,000,000 | Covid relief: prev R900,000 |