Transfer duty is a tax that the buyer pays to the South African Revenue Service (SARS) when property changes hands. SARS sets it on the value of the property, and the first R1.21 million is taxed at 0%.
The rates work in bands, as income tax does (see how income tax brackets work). The rate in a band applies only to the part of the value inside that band, so a higher price never raises the rate on the rand below it.
What does it apply to?
SARS defines the base as the value of any property acquired by a transaction or in any other way. Property here means land and the fixtures on it, real rights in land, rights to minerals, and shares or interests in a residential property company or a share-block company.
How much is it?
SARS lists six bands for property acquired from 1 April 2025. For the year starting 1 April 2026, its page says there are no changes.
| Property value | Duty |
|---|---|
| R1 to R1,210,000 | 0% |
| R1,210,001 to R1,663,800 | 3% of the value above R1,210,000 |
| R1,663,801 to R2,329,300 | R13,614 plus 6% of the value above R1,663,800 |
| R2,329,301 to R2,994,800 | R53,544 plus 8% of the value above R2,329,300 |
| R2,994,801 to R13,310,000 | R106,784 plus 11% of the value above R2,994,800 |
| Above R13,310,000 | R1,241,456 plus 13% of the value above R13,310,000 |
The table in force from 1 March 2024 to 31 March 2025 began its 3% band at R1.1 million. The 2025 adjustment moved each threshold up by about 10%.
Until 31 March 2025From 1 April 2025
Source: South African Revenue Service, Transfer Duty tax rates. Table from 1 March 2024 to 31 March 2025 and table from 1 April 2025; SARS lists no change from 1 April 2026. Chart: Rand Desk
A worked example
A buyer pays R2 million for a flat. A bond at the current repo rate is a separate cost. The value falls in the third band, so the duty is R13,614 plus 6% of the R336,200 above R1,663,800. That is R13,614 plus R20,172, or R33,786, which is 1.7% of the price.
A R1.5 million home sits in the 3% band: 3% of the R290,000 above the threshold, or R8,700. A R3 million home owes R107,356, or 3.6% of the price.
Who pays, and when?
The person acquiring the property pays. The conveyancer normally handles it for the buyer, because SARS has required all transfer duty to be paid electronically through eFiling since 1 April 2011.
Duty is due within six months of the date of acquisition. After that, SARS charges interest at 10% a year for each completed month. When a sale has conditions, the six months run from the date the last party signed the agreement, not from the date the conditions are met.
When is there no transfer duty?
If the seller is a VAT vendor selling in the course of an enterprise, the sale is a taxable supply and VAT applies instead. SARS says a supply of an entire enterprise as a going concern can be zero-rated for VAT when the conditions in the VAT Act are met.
What SARS checks
Property transfers are used to confirm tax compliance. SARS says a buyer or seller who is not registered, or who has outstanding returns or payments, will be given a chance to correct this, and that unresolved matters can delay the transfer.
From December 2025 the eFiling declaration asks for the tax reference number of the seller and the purchaser. For individuals this applies only to transactions above R2 million.
Any change to the thresholds is announced in the Budget, and the six-month payment clock starts on the date of acquisition.
