When you buy a property in South Africa, you usually pay transfer duty to SARS on the price. It can be one of the biggest costs of buying, so it's worth knowing what to expect.
The table
For properties bought on or after 1 April 2025 (unchanged for 2026/27):
| Value of the property | Transfer duty |
|---|---|
| Up to R1,210,000 | 0% |
| R1,210,001 – R1,663,800 | 3% of the value above R1,210,000 |
| R1,663,801 – R2,329,300 | R13,614 + 6% of the value above R1,663,800 |
| R2,329,301 – R2,994,800 | R53,544 + 8% of the value above R2,329,300 |
| R2,994,801 – R13,310,000 | R106,784 + 11% of the value above R2,994,800 |
| Above R13,310,000 | R1,241,456 + 13% of the value above R13,310,000 |
Like income tax, each rate applies only to the part of the price inside its band.
Worked examples
- R1,000,000: below R1,210,000, so no duty.
- R1,500,000: 3% of R290,000 = R8,700.
- R2,000,000: R13,614 + 6% of R336,200 = R33,786.
- R3,000,000: R106,784 + 11% of R5,200 = R107,356.
Who pays, and when
The buyer pays. It's due within six months of the date you acquire the property. If it's paid late, SARS charges interest at 10% a year for each completed month. Your conveyancer usually arranges the payment as part of the transfer.
When there's no transfer duty
If the seller is registered for VAT and sells the property in the course of their business, the sale carries VAT instead, and there's no transfer duty: see VAT or transfer duty?.
Try your own price in our transfer duty calculator.
How the bands work, worked through
Take a property bought for R5,000,000. The price is above R2,994,800, so the duty is the R106,784 fixed for everything up to R2,994,800, plus 11% of the R2,005,200 above it, R220,572: R327,356 in all, about 6.5% of the price.
Budgeting for it
Transfer duty is due on top of the purchase price, so add it to the cash you need at transfer, alongside your deposit and your conveyancer's costs. On a R2,000,000 home the duty is R33,786; on R1,500,000 it's R8,700; and on anything up to R1,210,000 it's nothing at all, which matters a great deal to first-time buyers choosing between two homes either side of that line.
Sources
This is general information, not tax, legal or financial advice.