Transfer duty is the buyer-side tax on South African property, charged by SARS on marginal bands: each rate applies only to the slice of the price inside its band. To see the duty inside a complete purchase statement — attorney fees, VAT and Deeds Office levies included — use the South Africa transfer & bond costs calculator. Duty is only payable when the seller is not a VAT-registered vendor; a developer sale carries VAT in the price instead.
The SARS band table (from 1 April 2025)
| Portion of the price | Fixed amount at band floor | Rate on the excess | Total duty at the top of the band |
|---|---|---|---|
| Up to R1,210,000 | — | 0% | R0 |
| R1,210,001 – R1,663,800 | — | 3% | R13,614 |
| R1,663,801 – R2,329,300 | R13,614 | 6% | R53,544 |
| R2,329,301 – R2,994,800 | R53,544 | 8% | R106,784 |
| R2,994,801 – R13,310,000 | R106,784 | 11% | R1,241,456 |
| Above R13,310,000 | R1,241,456 | 13% | — |
Read a row as: duty = the fixed amount accumulated at the floor of your band, plus the band's rate on however far your price runs into it. Because the fixed amounts are exactly the duty accumulated below, the tax is continuous — crossing a threshold by one rand never costs more than a fraction of a rand. The same table applies to natural persons, companies and trusts buying residential property.
The duty at real prices
| Purchase price | Transfer duty | Effective rate |
|---|---|---|
| R1,000,000 | R0 | 0.00% |
| R1,210,000 | R0 | 0.00% |
| R1,500,000 | R8,700 | 0.58% |
| R2,000,000 | R33,786 | 1.69% |
| R2,500,000 | R67,200 | 2.69% |
| R3,000,000 | R107,356 | 3.58% |
| R5,000,000 | R327,356 | 6.55% |
| R10,000,000 | R877,356 | 8.77% |
| R15,000,000 | R1,461,156 | 9.74% |
Two features of the table drive real buying decisions. The R1,210,000 zero band makes the tax a non-issue across most of the first-time market — below it, a buyer's upfront costs are attorney fees and levies only. And because the bands are marginal, the effective rate stays far below the headline band rate: even a R5 million purchase pays 6.55% overall, inside the 11% band. The top band's 13% only applies to value above R13,310,000.
How the duty is paid
The buyer pays, but never directly to SARS: the conveyancing (transfer) attorney calculates the duty on the purchase price, collects it with the transfer costs into their trust account, submits the transfer duty declaration and pays SARS, which issues the receipt the Deeds Office requires before registration. Where the price is not solely money — part-exchange, assumed debt or a price adjusted by escalation clauses — duty is charged on the greater of the consideration and the market value of the property. If a transaction falls through, duty already paid is refunded through the attorney on SARS's process; the declaration should not be submitted until the sale is unconditional, which is why suspensive conditions delay this payment.
Sources: SARS transfer duty rates (sars.gov.za), in force from 1 April 2025 and confirmed unchanged for the 2026/27 tax year in the 2026 Budget. Last updated: October 2026.
Results are estimates for education and planning only — not financial or tax advice. Confirm the final figure with your lender, tax authority or a qualified professional before making decisions.
Frequently asked questions
What is the current transfer duty threshold in South Africa?
No transfer duty is payable on the first R1,210,000 of the price. SARS raised the threshold from R1,100,000 in Budget 2025, with the new bands in force from 1 April 2025, and Budget 2026 left the table unchanged for 2026/27. It is a marginal band, not a cliff: a R1,500,000 purchase pays duty only on the value above R1,210,000 — R8,700 in total, not duty on the whole price.
How is transfer duty calculated?
On marginal bands. From 1 April 2025: 0% to R1,210,000; 3% of the value above that up to R1,663,800; then R13,614 plus 6% to R2,329,300; R53,544 plus 8% to R2,994,800; R106,784 plus 11% to R13,310,000; and R1,241,456 plus 13% above that. The fixed amounts are simply the accumulated duty at each band floor — the table is continuous, with no jumps at the thresholds.
Who pays transfer duty — buyer or seller?
The buyer. The conveyancing attorney collects it with the other transfer costs, pays SARS and obtains the transfer duty receipt without which the Deeds Office will not register the transfer. Budget for it in cash before registration, alongside the attorney fees and levies itemised in the costs calculator.
When is transfer duty not payable?
Most importantly, when the seller is a VAT-registered vendor — typically a developer selling a new property. The transaction is then a VAT supply (15% VAT inside the price) and transfer duty does not apply. Certain other transfers are exempt, including many transfers between spouses, inheritances, and qualifying corporate restructures; FLISP-assisted first-time purchases still pay duty in the normal way, the subsidy can simply be applied to it.
Are companies and trusts charged the same rates?
Since 2011, yes — natural persons, companies and trusts all pay transfer duty on the same residential table above when acquiring residential property. The old flat 8% rate for legal entities no longer exists. Share transfers in property-owning companies are a separate regime and not a way around the duty.
When did the current bands take effect, and when do they change?
The table on this page took effect on 1 April 2025 and remains in force for the 2026/27 tax year. Transfer duty bands are set in the annual Budget and usually change only when announced there; this page is reviewed after every Budget speech. The full worked table is applied in the costs calculator, which adds attorney fees, VAT and Deeds Office levies to the duty figure.