How is South Africa Transfer Duty calculated?

Transfer Duty is a progressive, bracketed tax: nothing is due on the first R1.1 million, then rising marginal rates of 3%, 6%, 8%, 11% and 13% apply to successive bands of the price above that. Each band is taxed at its own rate, so only the portion of the price within a band is charged at that band's rate.

Is there a tax-free threshold?

Yes. Properties with a purchase value of R1,100,000 or less attract zero Transfer Duty. Above that, duty is charged only on the excess, band by band, so a property just over the threshold pays only a small amount.

What about VAT instead of Transfer Duty?

If the seller is registered for VAT and sells in the course of an enterprise (commonly new developments), the price includes 15% VAT and no Transfer Duty is payable. Transfer Duty and VAT are mutually exclusive on the same transaction; this tool covers the Transfer Duty case.

Who pays Transfer Duty and when?

The buyer pays Transfer Duty to SARS, and it must be paid before the property can be registered in the buyer's name at the Deeds Office. The conveyancing attorney usually collects and remits it as part of the transfer process.

Are there other costs at purchase?

Yes. Besides Transfer Duty, buyers pay conveyancing (transfer) attorney fees, Deeds Office registration fees, and if there is a bond, separate bond registration costs. Budget for these on top of the duty shown here.

South Africa Stamp Duty / Transfer Tax Calculator

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South Africa’s equivalent of stamp duty is Transfer Duty, a progressive tax the buyer pays to SARS on a property purchase. This calculator applies the official sliding-scale brackets so you can see exactly what the acquisition tax will be before transfer.

How it works

Transfer Duty is bracketed: each portion of the price within a band is taxed at that band’s marginal rate.

R0          – R1,100,000   →  0%
R1,100,001  – R1,512,500   →  3% of the amount above R1,100,000
R1,512,501  – R2,117,500   →  R12,375 + 6% above R1,512,500
R2,117,501  – R2,722,500   →  R48,675 + 8% above R2,117,500
R2,722,501  – R12,100,000  →  R97,075 + 11% above R2,722,500
R12,100,001 and above      →  R1,128,600 + 13% above R12,100,000

The tool sums the duty band by band, so only the slice of the price falling in each range is charged at that range’s rate.

Example and tips

On a R2,000,000 purchase, the first R1.1m is free, the band to R1,512,500 adds R12,375, and the remaining R487,500 above R1,512,500 is taxed at 6% (R29,250) — a total Transfer Duty of about R41,625, an effective rate near 2.1%. Because the first R1.1m is always exempt, the effective rate is well below the top marginal band for typical homes. Remember Transfer Duty does not apply where the sale is subject to VAT instead.