What is transfer duty
in South Africa?
Transfer duty is the SARS tax you pay when buying property. No duty on purchases below R1,210,000 — above that, rates run from 3% to 13%. Here is exactly how it works.
What is transfer duty in South Africa?
Transfer duty is the SARS tax payable when you buy property in South Africa. No duty is charged on purchases below R1,210,000. Above that threshold, rates range from 3% to 13% depending on the purchase price. Transfer duty is paid before the property is registered in the Deeds Office.
✓ Fact-checkedUpdated 18 May 2026Sources: SARS Transfer Duty rates·Government Gazette 54225 (Deeds Office fees)·National Treasury Budget 2026
Key takeaways
- ✓No transfer duty is payable on properties purchased at R1,210,000 or below — the threshold unchanged for 2026/27.
- ✓Transfer duty and VAT are mutually exclusive. When buying from a VAT-registered developer, you pay VAT (included in price) — no duty on top.
- ✓On a R2,000,000 purchase, SARS transfer duty is exactly R 33 786 — about 2.7% of the price.
- ✓Transfer duty must be paid within six months of signing. In practice your transfer attorney pays SARS from funds you lodge before registration.
In this guide
- 1What is transfer duty?
Definition, who pays it, and when it applies
- 22026/27 SARS transfer duty brackets
The full rate table with every threshold and marginal rate
- 3Worked examples
Exact duty amounts for R1m, R1.5m, R2m, R3m, R5m and R10m properties
- 4The VAT exception
Why properties from developers attract VAT, not duty — and how to tell which applies
- 5Other buying costs
Where transfer duty fits in the full picture of upfront costs
- 6Frequently asked questions
First-time buyers, payment deadlines, below-market value, and more
What is transfer duty?
Transfer duty is a tax levied by the South African Revenue Service (SARS) on the acquisition of immovable property. It is governed by the Transfer Duty Act, 1949, and is payable by the buyer — not the seller.
The tax is calculated on the purchase price or the market value, whichever is higher. In practice, SARS accepts the purchase price in arm's-length transactions between unrelated parties. Where property is sold between related parties below market value — say, between family members — SARS may reassess on market value.
Transfer duty is a once-off payment. There is no annual recurrence, and it is not a capital gain — it is a transaction tax triggered by the sale. Once registered, the buyer owns the property outright until they sell it (at which point the next buyer pays duty).
Who pays transfer duty?
Buyer
Pays transfer duty to SARS. Also pays the transfer attorney fee, Deeds Office fee, and disbursements.
Seller
Does not pay transfer duty. The seller pays the estate agent commission (if applicable) and cancellation attorney fee for any existing bond.
The transfer attorney (conveyancer) handles the SARS payment on behalf of the buyer. Before registration can proceed, the attorney lodges the duty with SARS and obtains a receipt — known as a transfer duty receipt or, if the property is exempt, a transfer duty exemption certificate.
2026/27 SARS transfer duty brackets
The table below shows the current rates, effective from 1 April 2025 and confirmed unchanged by National Treasury for the 2026/27 tax year (Budget, 19 February 2026).
| Purchase price | Rate |
|---|---|
| R0 – R1 210 000 | 0% — no duty |
| R1 210 001 – R1 663 800 | 3% |
| R1 663 801 – R2 329 300 | 6% |
| R2 329 301 – R2 994 800 | 8% |
| R2 994 801 – R13 310 000 | 11% |
| Above R13 310 000 | 13% |
Source: SARS — Transfer Duty Act, rates effective 1 April 2025, confirmed unchanged for 2026/27. The R1,210,000 threshold has applied since 1 April 2025.
Worked examples
The amounts below are calculated using the exact SARS formula — progressively taxing each slice of the purchase price at the applicable marginal rate:
| Purchase price | Transfer duty |
|---|---|
| R1 000 000 | R 0 |
| R1 500 000 | R 8 700 |
| R2 000 000 | R 33 786 |
| R3 000 000 | R 107 356 |
| R5 000 000 | R 327 356 |
| R10 000 000 | R 877 356 |
How the R2,000,000 calculation works:
- First R1,210,000: R0 (duty-free threshold)
- R1,210,001 – R1,663,800 (R453,800 × 3%): R13,614
- R1,663,801 – R2,000,000 (R336,200 × 6%): R20,172
- Total: R13,614 + R20,172 = R33,786
Use the transfer duty calculator to check any amount instantly, or the transfer cost calculator for the full upfront cost picture (duty + attorney fees + Deeds Office).
The VAT exception: when VAT applies instead
Transfer duty and VAT are mutually exclusive. A property sale attracts one or the other — never both.
VAT applies when all three conditions are met:
- The seller is registered for VAT
- The property is sold in the course and furtherance of the seller's enterprise
- The sale is not a going-concern transaction
In practice, this means buying a new house or sectional title unit directly from a developer. The developer includes 15% VAT in the sale price — what you see advertised is VAT-inclusive — and no transfer duty is payable on top.
Transfer duty applies
- → Private seller (individual resale)
- → Company selling a property it owns but does not develop
- → Estate or trust selling property
- → Any seller who is not VAT-registered
VAT applies (no duty)
- → Buying a new home directly from a developer
- → New sectional title units in a development
- → VAT-registered commercial property seller
- → Check: the offer-to-purchase and/or spec sheet will state VAT or duty
How to check which applies
Your offer to purchase (OTP) will specify whether the price is inclusive or exclusive of VAT, or whether transfer duty is for the buyer's account. If the OTP is silent, ask your transfer attorney to clarify before signing — getting this wrong affects your total purchase budget significantly.
Transfer duty in the context of total buying costs
Transfer duty is the largest single upfront cost on most property purchases above R1.21m, but it is not the only one. Here is a typical cost stack for a R2,000,000 purchase with an 80% bond (R1,600,000 loan):
| Cost item | Approx. amount |
|---|---|
| SARS transfer duty | R33,786 |
| Transfer attorney fee (incl. VAT) | ~R29,176 |
| Deeds Office (transfer) | R1,738 |
| Disbursements (FICA, searches, etc.) | ~R2,473 |
| Bond attorney fee (incl. VAT) | ~R26,771 |
| Deeds Office (bond) | R1,738 |
| Bank initiation fee | R6,038 |
| Bond disbursements | ~R766 |
| Total upfront costs | ~R102,486 |
Use the transfer cost calculator for an exact breakdown for any purchase price and loan amount.
Calculate your transfer duty
Enter any purchase price and see the exact SARS duty, attorney fees, and Deeds Office costs instantly.
Frequently asked questions
What is transfer duty in South Africa?
Transfer duty is a tax levied by SARS on the acquisition of immovable property in South Africa. It is paid by the buyer — not the seller — and is calculated on the purchase price (or market value if higher). Transfer duty is a once-off tax paid before the property can be registered in the buyer's name at the Deeds Office.
What is the transfer duty threshold for 2026?
The transfer duty threshold for the 2026/27 tax year is R1,210,000. Properties purchased at or below this amount attract zero transfer duty. National Treasury confirmed this threshold is unchanged from 2025/26 — it has been at R1,210,000 since 1 April 2025. Properties above this amount are taxed progressively at 3%, 6%, 8%, 11%, or 13% on the excess above each bracket.
Do first-time buyers pay transfer duty?
There is no separate first-time buyer exemption from transfer duty in South Africa. The R1,210,000 duty-free threshold applies to all buyers regardless of whether it is their first purchase. First-time buyers who qualify for a First Home Finance (NHFC) subsidy may receive a cash grant that can help cover transfer costs — but the duty calculation itself is the same as for any other buyer.
What is the difference between transfer duty and VAT on property?
Transfer duty and VAT are mutually exclusive — a property attracts one or the other, never both. Transfer duty applies when the seller is a private individual (or any entity that is not a VAT vendor selling in the course of their enterprise). VAT at 15% applies when the seller is a VAT-registered developer or company selling a new property as part of their business. When VAT applies, the VAT amount is typically included in the purchase price, and no transfer duty is payable.
When must transfer duty be paid?
Transfer duty must be paid to SARS within six months of the date of the sale agreement (offer to purchase). In practice, the transfer attorney calculates and pays the duty on the buyer's behalf using funds the buyer lodges before registration. A SARS receipt (transfer duty receipt or exemption certificate) is required before the Deeds Office will register the transfer.
Is transfer duty the only cost when buying property?
No. Transfer duty is one of several once-off costs payable on registration. Other costs include the conveyancing (transfer attorney) fee, Deeds Office transfer fee, and disbursements — typically R3,500–R6,000 for FICA, searches, and admin. If you are taking a bond, add the bond registration attorney fee, Deeds Office bond fee, and the bank initiation fee (capped at R6,037.50 by the NCA). These costs collectively add 8–12% to a typical purchase price above the R1.21m threshold.
Can transfer duty be included in the home loan?
Most banks will not include transfer duty in the bond — it must be paid from your own funds before registration. Some banks do offer a 'bond plus transfer costs' product that capitalises these upfront costs into the loan amount, typically at a slightly higher rate. Ask your bond originator whether this is available and model the long-term interest cost before accepting.
What happens if a property is bought below market value?
SARS calculates transfer duty on the higher of the purchase price and the market value. If you buy a property from a related party (family member, employer) at a discounted price, SARS may reassess the duty based on market value. In arm's-length transactions between unrelated parties, the purchase price is accepted as the market value.
Related calculators
Transfer Duty Calculator
Instant SARS duty for any purchase price
Transfer Cost Calculator
Full upfront buying costs: duty + attorneys + Deeds Office
Bond Calculator
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First Home Finance
NHFC subsidy up to R121,626 for qualifying buyers
Property Hub
All SA property calculators in one place
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Data: Effective April 2026 · SARS Transfer Duty Act rates · National Treasury Budget 2026 · Government Gazette 54225 (Deeds Office fees, April 2026) · See methodology