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Transfer duty is a tax levied by the South African government on the purchase of immovable property. It is governed by the Transfer Duty Act and administered by the South African Revenue Service (SARS). Understanding transfer duty is essential for any property buyer because it can represent a significant additional cost — particularly on higher-value properties.
The 2026 Transfer Duty Table
The transfer duty rates effective from 1 April 2025 were confirmed unchanged for the 2026/27 tax year by National Treasury in the February 2026 Budget. The rates are progressive, meaning each bracket only applies to the portion of the purchase price that falls within that band:
| Property Value | Rate | Duty Payable |
|---|---|---|
| R0 – R1,210,000 | 0% | R0 |
| R1,210,001 – R1,663,800 | 3% on excess above R1,210,000 | R0 – R13,614 |
| R1,663,801 – R2,329,300 | R13,614 + 6% on excess above R1,663,800 | Up to R53,544 |
| R2,329,301 – R2,994,800 | R53,544 + 8% on excess above R2,329,300 | Up to R106,784 |
| R2,994,801 – R13,310,000 | R106,784 + 11% on excess above R2,994,800 | Up to R1,241,456 |
| R13,310,001 and above | R1,241,456 + 13% on excess above R13,310,000 | Unlimited |
Who Pays Transfer Duty?
Transfer duty is always paid by the buyer, never the seller. It is payable to SARS and must be settled before the property can be registered in the buyer's name at the Deeds Office. In practice, your conveyancing attorney collects the amount from you, pays SARS, and obtains a transfer duty receipt which is lodged with the Deeds Office.
When VAT Applies Instead of Transfer Duty
Transfer duty does not apply when the seller is a VAT vendor and the sale is in the course or furtherance of an enterprise. This is common with new property developments where the developer is VAT-registered. In these cases, VAT (currently 15%) is charged instead of transfer duty. New developments therefore often appear more expensive than they are — you are paying VAT rather than transfer duty, so the comparison must be made carefully.
First-Time Buyer Benefits
There is no separate transfer duty exemption for first-time buyers in South Africa — the R1,210,000 threshold applies to all buyers equally. However, first-time buyers may be eligible for the FLISP subsidy (Finance Linked Individual Subsidy Programme) if their gross household income falls between R3,501 and R22,000 per month. FLISP provides a once-off subsidy toward the purchase of an affordable home. Your bond originator can advise on eligibility.
What Else Will You Pay?
Transfer duty is just one of several costs at registration. You will also pay conveyancing attorney fees (for the transfer), bond registration attorney fees, Deeds Office registration fees, and various administrative costs. This calculator provides estimates for all of these. Always confirm exact figures with your conveyancing attorney before committing to a purchase.
Frequently Asked Questions
For 2026, properties purchased at R1,210,000 or less attract zero transfer duty. This threshold applies to all buyers equally. Properties above this value are taxed progressively.
Transfer duty is paid by the purchaser (buyer) of the property. It is payable to SARS and must be paid before the property can be transferred into the buyer's name at the Deeds Office.
There is no transfer duty on properties selling for R1,210,000 or less. There is also no transfer duty on VAT-registered transactions — the seller charges VAT instead. Certain company restructuring transactions may also be exempt.
Transfer duty must be paid within six months of the date of the sale agreement. Your conveyancing attorney will request payment and pay SARS on your behalf as part of the registration process.
Transfer duty is the tax paid to SARS. Transfer costs is a broader term covering all costs at registration, including transfer duty, conveyancing attorney fees, Deeds Office fees, and other administrative charges.