Transfer Duty Explained Simply
Transfer duty is a tax you pay when you buy property in South Africa. Here's exactly how it works, who pays it, and the current rates.
Key Takeaways
- Transfer duty is a tax paid to SARS when you buy property
- Properties under R1,100,000 pay ZERO transfer duty
- The buyer always pays — never the seller
- New builds from developers have VAT instead of transfer duty
- You must pay within 6 months of the sale or face penalties
What is transfer duty?
Transfer duty is a government tax on property transactions. When you buy a house, flat, or land, SARS charges you a percentage of the purchase price. The money goes to the government — not to the seller or the attorney.
Current transfer duty rates (2025/2026)
Transfer duty works on a sliding scale. The more expensive the property, the higher the percentage you pay:
- R0 – R1,100,000: 0% (no transfer duty)
- R1,100,001 – R1,512,500: 3% on the amount above R1.1m
- R1,512,501 – R2,117,500: R12,375 + 6% on amount above R1.5m
- R2,117,501 – R2,722,500: R48,675 + 8% on amount above R2.1m
- R2,722,501 – R12,100,000: R97,075 + 11% on amount above R2.7m
- Above R12,100,000: R1,128,625 + 13% on amount above R12.1m
When you DON'T pay transfer duty
There are some situations where transfer duty doesn't apply:
- Properties under R1.1 million (first-time buyer sweet spot)
- Buying a new property from a VAT-registered developer (you pay VAT instead)
- Transfers between spouses during divorce
- Inheritance (deceased estate transfers to heirs)
Example calculation
If you buy a house for R2 million: You pay 0% on the first R1.1m (= R0), then 3% on the next R412,500 (= R12,375), then 6% on the remaining R487,500 (= R29,250). Total transfer duty = R41,625. Use our calculator above for an instant calculation.
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