Property Value
RÂ 2Â 000Â 000,00
Transfer Duty
RÂ 41Â 625,00
Total Cost
RÂ 2Â 041Â 625,00
Effective Rate
2.1%
Transfer duty is a tax on the acquisition of immovable property in South Africa. Properties valued at R1,100,000 or less are exempt.
The duty is calculated on a progressive sliding scale, with rates increasing from 3% to 13% as the property value increases.
Note: If you purchase property from a VAT-registered vendor, VAT (15%) applies instead of transfer duty. You cannot be charged both.
What is transfer duty?
Transfer duty is a tax payable on the acquisition of property in South Africa. It is paid by the buyer and is calculated on a sliding scale based on the property value.
When is transfer duty not payable?
Transfer duty is not payable on properties sold by VAT-registered vendors (as VAT applies instead), properties valued at R1,100,000 or less, and certain exempt transactions (e.g., between spouses in community of property).
What are the transfer duty rates for 2024/2025?
R0-R1,100,000: 0%; R1,100,001-R1,512,500: 3% of value above R1,100,000; R1,512,501-R2,117,500: R12,375 + 6% above R1,512,500; R2,117,501-R2,722,500: R48,675 + 8% above R2,117,500; R2,722,501-R12,100,000: R97,075 + 11% above R2,722,500; Above R12,100,000: R1,128,600 + 13% above R12,100,000.
When must transfer duty be paid?
Transfer duty must be paid within 6 months from the date of acquisition. The conveyancing attorney handling the property transfer typically arranges payment to SARS.
The tax you pay when buying property and how much it costs at different price points
What is transfer duty?
Transfer duty is a tax paid to SARS when you acquire property (land or buildings) in South Africa. It is calculated on the purchase price or market value (whichever is higher). The buyer pays transfer duty, not the seller. A conveyancing attorney handles the payment as part of the property transfer process. You must pay before SARS issues a transfer duty receipt, which is needed to register the property.
How much is transfer duty?
Transfer duty is calculated on a sliding scale. Properties up to R1,100,000 are exempt (0%). From R1,100,001 to R1,512,500 the rate is 3%. From R1,512,501 to R2,117,500 it is 6%. From R2,117,501 to R2,722,500 it is 8%. From R2,722,501 to R12,100,000 it is 11%. Above R12,100,000 the rate is 13%. On a R2,000,000 property, you would pay about R30,600.
Is there an exemption for first-time buyers?
There is no special first-time buyer exemption. However, the 0% rate on properties up to R1,100,000 benefits all buyers equally. If you are a first-time buyer purchasing a home for R1,000,000, you pay zero transfer duty. Government housing subsidy programmes may provide additional assistance for first-time buyers in lower income brackets.
When is transfer duty not payable?
Transfer duty is not payable on new properties purchased from a VAT-registered developer — instead you pay 15% VAT which is included in the purchase price. Transfer duty also does not apply to transfers between spouses in a marriage in community of property, transfers resulting from divorce orders, or inheritance (which may attract estate duty instead).
How does transfer duty differ from VAT on property?
If the seller is a VAT-registered developer selling a new building, the sale includes 15% VAT and no transfer duty applies. If the seller is not VAT-registered (most resales between individuals), transfer duty applies. You never pay both on the same transaction. On a R3 million new-build from a developer, VAT of R391,304 is included in the price. On a R3 million resale, transfer duty is about R107,100.
What other costs come with buying property?
Besides transfer duty, buyers pay: conveyancing attorney fees (R15,000 to R30,000 for a R2 million property), bond registration fees (R15,000 to R25,000), deeds office fees (R1,000 to R2,000), FICA compliance fees, and bond initiation fees charged by banks. Total buying costs on a R2 million property are typically R80,000 to R120,000 including transfer duty.
When must transfer duty be paid?
Transfer duty must be paid within 6 months of the date the property sale agreement is signed. If paid late, SARS charges interest at the prescribed rate. Your conveyancing attorney usually arranges payment and obtains the transfer duty receipt from SARS. The receipt is required before the Deeds Office will register the property transfer in your name.
SARS-Aligned: Based on 2025 SARS rates and thresholds. For personal advice, speak to a qualified tax practitioner.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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