South Africa Abolished Stamp Duty in 2009

If you searched for "stamp duty South Africa", you need the Transfer Duty calculator below. The Revenue Laws Amendment Act (No. 60 of 2008) abolished stamp duty on property transfers effective 1 April 2009, replacing it with a revised Transfer Duty under the Transfer Duty Act. The SA equivalent of stamp duty is now zero for properties under R1,210,000, then 3–13% above that threshold.

R
Transfer Duty Payable (SA "Stamp Duty")
R 21 786
Effective rate: 1.21% of R 1 800 000
Transfer Duty
R 21 786
Effective Rate
1.21%
Marginal Bracket
6%
Total Property Cost
R 1 821 786
Transfer Duty Brackets 2025/2026 (SARS)
Property ValueRateCalculation
R0 – R1,210,0000%Exempt (first R1.21M)
R1,210,001 – R1,663,8003%On amount above R1,210,001
R1,663,801 – R2,329,3006%Plus R13,614 on amount above R1,663,801
R2,329,301 – R2,994,8008%Plus R53,544 on amount above R2,329,301
R2,994,801 – R13,310,00011%Plus R106,784 on amount above R2,994,801
Above R13,310,00013%Plus R1,241,456 on amount above R13,310,001
Quick Reference: Transfer Duty at Common Price Points
Property PriceTransfer DutyEffective Rate
R 800 000R 00.00%
R 1 000 000R 00.00%
R 1 210 000R 00.00%
R 1 400 000R 5 7000.41%
R 1 663 800R 13 6140.82%
R 1 800 000R 21 7861.21%
R 2 000 000R 33 7861.69%
R 2 329 300R 53 5442.30%
R 2 500 000R 67 2002.69%
R 3 000 000R 107 3563.58%
R 4 000 000R 217 3565.43%
R 6 000 000R 437 3567.29%
Stamp Duty in South Africa — What You Need to Know History • Transfer Duty • Examples

What Happened to Stamp Duty in South Africa?

South Africa officially abolished stamp duty on property transfers on 1 April 2009 via the Revenue Laws Amendment Act, No. 60 of 2008. Before this date, stamp duty (also called marketable securities tax and securities transfer tax for shares) was charged on various documents including property transfer documents.

The government replaced stamp duty on property with a revised and more progressive Transfer Duty Act. The key improvement was the introduction of a substantial exemption threshold — currently R1,210,000 — meaning first-time buyers and those purchasing more affordable homes pay zero transfer duty. This was specifically designed to benefit first-time buyers in the affordable housing market.

How Transfer Duty Works (2025/2026)

Transfer duty is paid by the buyer to SARS and must be paid within 6 months of the date of the sale agreement. The conveyancing attorney typically handles the payment on behalf of the buyer. Transfer of the property in the Deeds Office cannot proceed until SARS issues a transfer duty receipt confirming payment.

Transfer Duty = 0% on first R1,210,000 + sliding scale on amounts above

Exempt from transfer duty: Properties purchased directly from a registered VAT vendor (e.g. developer selling a new development) are subject to VAT at 15% instead of transfer duty. You cannot pay both VAT and transfer duty on the same property.

Worked Example

Adaora is a Nigerian professional moving to Johannesburg and asks "how much is stamp duty on a R1,800,000 property?"

In South Africa, there is no stamp duty — it was abolished in 2009. The equivalent tax is Transfer Duty, calculated as follows:

R1,800,000 falls in the 6% bracket (R1,663,801–R2,329,300).
Transfer duty = R13,614 + 6% × (R1,800,000 − R1,663,801)
= R13,614 + 6% × R136,199
= R13,614 + R8,172 = R21,786

Effective rate: R21,786 / R1,800,000 = 1.21% — significantly less than UK stamp duty at this price point.

Frequently Asked Questions

Does South Africa have stamp duty on property purchases?

No. South Africa abolished stamp duty on property transfers in April 2009 under the Revenue Laws Amendment Act No. 60 of 2008. The equivalent tax in South Africa is called Transfer Duty, governed by the Transfer Duty Act. Properties up to R1,210,000 pay zero transfer duty (2025/2026 threshold). Above that, a sliding scale applies from 3% to 13%.

What is the transfer duty exemption threshold for 2026?

For the 2025/2026 tax year, the transfer duty exemption threshold is R1,210,000. Properties purchased for R1,210,000 or less pay zero transfer duty. The threshold was previously R1,100,000 and has been increasing progressively to support affordable housing. Note: the exemption only applies to individual buyers — companies, close corporations, and trusts pay a flat 10% on the full purchase price.

Who pays transfer duty in South Africa — buyer or seller?

Transfer duty is paid by the buyer. It must be paid to SARS within 6 months of the date of the Deed of Sale. In practice, your conveyancing attorney collects the transfer duty amount upfront as part of your settlement funds and pays it to SARS on your behalf. SARS will issue a transfer duty receipt, which is required before the transfer can be registered at the Deeds Office.

Is transfer duty payable on new developments in South Africa?

No, if the seller is a registered VAT vendor (typically a property developer). When you buy a new property directly from a developer who is a VAT vendor, the transaction is subject to VAT at 15% instead of transfer duty. You cannot pay both. The VAT is usually included in the purchase price. This is an important distinction — buying a new apartment off-plan may have no additional transfer duty if the developer has included VAT in the price.

How does South Africa's transfer duty compare to UK stamp duty?

South Africa's transfer duty is generally lower than UK stamp duty for most property price ranges. In the UK (England/Northern Ireland), Stamp Duty Land Tax (SDLT) ranges from 0% to 12% with a £250,000 threshold for standard purchases. SA's exemption threshold of R1,210,000 (approximately £52,000 at current exchange rates) effectively means the first-time buyer market in SA pays no duty. At R3,000,000 (~£130,000), SA transfer duty is approximately 4.2% vs UK SDLT of approximately 2.5%. Both systems use progressive/sliding scales.