Transfer duty and transfer costs in South Africa
The short answer
Contents
The 2026/27 rates
These rates took effect on 1 April 2026 and apply to all buyers equally: individuals, companies, close corporations and trusts. Duty is charged on the purchase price or the fair market value, whichever is higher.
| Property value | Transfer duty payable |
|---|---|
| R0 to R1 210 000 | Nil |
| R1 210 001 to R1 663 800 | 3% of the value above R1 210 000 |
| R1 663 801 to R2 329 300 | R13 614 + 6% of the value above R1 663 800 |
| R2 329 301 to R2 994 800 | R53 544 + 8% of the value above R2 329 300 |
| R2 994 801 to R13 310 000 | R106 784 + 11% of the value above R2 994 800 |
| R13 310 001 and above | R1 241 456 + 13% of the value above R13 310 000 |
Worked examples
Run your own purchase price through the transfer duty calculator rather than interpolating between these. The sliding scale means a few thousand rand either side of a bracket boundary changes the answer.
| Purchase price | Transfer duty |
|---|---|
| R1 000 000 | R0 |
| R1 210 000 | R0 |
| R1 500 000 | R8 700 |
| R2 000 000 | R33 786 |
| R2 500 000 | R67 200 |
| R3 000 000 | R107 356 |
| R5 000 000 | R327 356 |
Who pays, and when
The buyer pays transfer duty, not the seller. It is paid to SARS through the conveyancing attorney, who obtains a transfer duty receipt before the transfer can be lodged at the Deeds Office.
It is due within six months of the date the agreement was concluded. Late payment attracts interest, which is one of several reasons a stalled transfer becomes expensive.
Transfer duty or VAT, never both
The two are mutually exclusive. If the seller is a VAT vendor selling in the course of their enterprise (most commonly a developer selling a new unit), the sale attracts VAT at 15%, which is normally included in the advertised price, and no transfer duty is payable.
In an ordinary sale between private individuals, no VAT applies and the buyer pays transfer duty. If you are buying off-plan from a developer, check whether the quoted price is VAT-inclusive; it usually is, and that materially changes your cash requirement.
The buyer's other transfer costs
Transfer duty is the largest but not the only cost on the buyer's side. See our guide to conveyancing and the transfer process for how these fit into the timeline.
- Transferring attorney's fees: on the LSSA guideline scale, negotiable, and scaling with purchase price.
- Bond registration costs: if you are financing, a separate attorney registers the bond, with its own fee and duty.
- Deeds Office registration fee: a modest fixed amount by band.
- FICA, search and sundry fees: small, but they appear on every statement.
Why this matters when you sell
Transfer duty is a buyer's cost, so it does not come off your cost of selling. It does not reduce your proceeds. It does affect what buyers can afford, because it is cash they must have on top of their deposit and it cannot be bonded.
The practical consequence at the R1 210 000 threshold is a modest step, not a cliff. A property listed at R1 250 000 costs its buyer only about R1 200 in duty; one listed at R1 210 000 costs them nothing. Buyers only feel transfer duty as a serious cash constraint well above the threshold, where the sliding scale has had room to compound. It is not a reason to price defensively right at the line.
Common questions
- What is the transfer duty threshold in South Africa for 2026?
- R1 210 000. No transfer duty is payable on property purchased at or below that value in the 2026/27 tax year. Above it, duty is charged on a sliding scale from 3% up to 13%.
- Who pays transfer duty, the buyer or the seller?
- The buyer. It is paid to SARS via the conveyancing attorney, who must obtain a transfer duty receipt before the transfer can be lodged at the Deeds Office.
- How much is transfer duty on a R2 million house in South Africa?
- R33 786 in the 2026/27 tax year: R13 614 + 6% of the value above R1 663 800.
- Do you pay both transfer duty and VAT on a property?
- No, never both. If the seller is a VAT vendor selling in the course of their enterprise, VAT at 15% applies and no transfer duty is payable. Otherwise the buyer pays transfer duty and no VAT applies.
- Can transfer duty be added to my bond?
- Not usually. Most lenders finance the purchase price only, so transfer duty and attorney fees must be paid in cash on top of your deposit. Some banks offer a separate facility for costs; ask before you make an offer.
Sources
Every figure on this page traces to one of these.