Transfer Duty in South Africa 2026 - Complete Guide
Transfer duty is a government tax levied on the sale of fixed property in South Africa. If you are buying a property - whether a house, flat, or plot - you will most likely need to budget for this cost on top of the purchase price.
This guide covers the current 2026 brackets, worked examples, exemptions, and when VAT applies instead.
What is transfer duty?
Transfer duty is administered by SARS (South African Revenue Service) and is payable before ownership of a property can be registered in your name at the Deeds Office. Your conveyancing attorney handles the payment on your behalf.
The duty is calculated on the purchase price (or the market value if that is higher) and is paid by the buyer, not the seller.
2026 transfer duty brackets
| Purchase price | Rate | Duty payable |
|---|---|---|
| R0 - R1,210,000 | 0% | R0 |
| R1,210,001 - R1,663,800 | 3% | 3% on amount above R1,210,000 |
| R1,663,801 - R2,329,300 | 6% | R13,614 + 6% on amount above R1,663,800 |
| R2,329,301 - R2,994,800 | 8% | R53,544 + 8% on amount above R2,329,300 |
| R2,994,801 - R13,310,000 | 11% | R106,784 + 11% on amount above R2,994,800 |
| R13,310,001 and above | 13% | R1,241,456 + 13% on amount above R13,310,000 |
Properties at or below R1,210,000 are fully exempt from transfer duty.
Worked examples
Example 1: R900,000 property Below the exemption threshold. Transfer duty = R0.
Example 2: R1,500,000 property R0 + (R1,500,000 - R1,210,000) x 3% = R290,000 x 3% = R8,700
Example 3: R2,000,000 property R13,614 + (R2,000,000 - R1,663,800) x 6% = R13,614 + R20,172 = R33,786
Example 4: R3,000,000 property R106,784 + (R3,000,000 - R2,994,800) x 11% = R106,784 + R572 = R107,356
Example 5: R5,000,000 property R106,784 + (R5,000,000 - R2,994,800) x 11% = R106,784 + R220,572 = R327,356
Use our Transfer Duty Calculator to calculate the exact figure for any purchase price instantly.
Who pays transfer duty?
The buyer pays transfer duty. Your conveyancing attorney collects the funds from you and pays SARS before lodging the title deed transfer at the Deeds Office. Transfer duty is never the seller’s responsibility.
Exemptions - when is transfer duty zero?
Several transactions are exempt from transfer duty:
Purchase price at or below R1,210,000 Any property purchased at or below R1,210,000 attracts no transfer duty.
VAT-registered sellers (new developments) If you buy directly from a VAT-registered developer - typically a brand-new home or an off-plan purchase - the transaction attracts VAT at 15% instead of transfer duty. You cannot be charged both. When VAT is included in the purchase price, no transfer duty is payable.
Inherited property Property transferred through a deceased estate to an heir is generally exempt from transfer duty, provided it passes directly to the heir and is not sold to a third party by the estate.
Divorce settlements Property transferred between spouses as part of a divorce settlement is exempt.
Transfers between spouses Certain transfers between spouses married out of community of property are exempt, depending on the circumstances.
VAT vs transfer duty on new builds
This is one of the most common points of confusion when buying property in South Africa.
If you buy from a developer who is a registered VAT vendor, VAT at 15% is included in the purchase price and no additional transfer duty is payable. However, you will still pay conveyancing attorney fees and bond registration costs.
If you buy a resale property from a private seller, transfer duty applies (subject to the R1,210,000 threshold) and there is no VAT.
Always confirm with your attorney whether the transaction is VAT-inclusive or transfer duty-applicable before signing the offer to purchase.
When and how is transfer duty paid?
Your conveyancing attorney pays SARS on your behalf. The payment must be made within 6 months of the date of the sale agreement to avoid interest and penalties. In practice, most transfers complete well within this period.
The process works like this:
- You sign the offer to purchase
- The conveyancing attorney prepares all transfer documents
- You pay the transfer duty (and other costs) into the attorney’s trust account
- The attorney submits the transfer duty declaration to SARS and pays the duty electronically
- SARS issues a transfer duty receipt
- The attorney lodges the transfer at the Deeds Office
- The property is registered in your name
Other costs when buying property in South Africa
Transfer duty is one part of your total purchase costs. You also need to budget for:
- Conveyancing attorney fees - for transferring the property into your name (based on LSSA guideline scale, typically 1-2% of the purchase price plus VAT)
- Bond registration attorney fees - if you are taking out a home loan, a separate attorney registers the bond (additional cost)
- Deeds Office fees - government registration fees paid via the attorneys
- FICA and compliance costs - document verification fees charged by attorneys
As a rough guide, budget 3-5% of the purchase price for total transaction costs (transfer duty plus all attorney fees) on a mid-range property.
Use our Bond Repayment Calculator to work out your monthly home loan cost, our Bond Affordability Calculator to see how much you qualify for, and read our SA Prime Rate History to understand how interest rates affect your repayment.
Frequently asked questions
What is transfer duty in South Africa? Transfer duty is a tax paid to SARS when you purchase fixed property in South Africa. It is calculated on the purchase price using a sliding scale of brackets. Properties at or below R1,210,000 pay no transfer duty.
What is the transfer duty threshold in South Africa for 2026? For 2026, no transfer duty is payable on properties priced at R1,210,000 or less. This threshold was raised from R1,100,000 in the February 2026 National Budget.
Do I pay transfer duty on a new development? No. When buying directly from a VAT-registered developer, VAT at 15% is included in the purchase price instead of transfer duty. You cannot be charged both.
How long does transfer duty take to process? SARS typically issues the transfer duty receipt within 2-5 business days. The full transfer process from signed offer to registration typically takes 6 to 12 weeks.
Can I negotiate transfer duty? Transfer duty is a government tax and cannot be negotiated with SARS. The buyer is legally obligated to pay the correct amount.
What happens if I don’t pay transfer duty? SARS will not issue the transfer duty receipt, and without it the property cannot be registered in your name. Late payment attracts interest at 10% per annum plus a 10% penalty.
Do first-time buyers get a transfer duty discount? No. There is no special first-time buyer exemption for transfer duty. The R1,210,000 threshold applies to all buyers equally.
Is transfer duty tax deductible? Transfer duty is a capital cost, not a deductible expense for income tax purposes. However, it forms part of your base cost for capital gains tax (CGT) when you eventually sell the property.