Transfer Duty Explained: What Property Buyers Need to Know
Transfer duty is a tax levied on the acquisition of property in South Africa. Whether you're buying your first home or an investment property, understanding transfer duty is essential for budgeting your purchase costs.
Who Pays Transfer Duty?
The buyer (purchaser) of the property is responsible for paying transfer duty. Your conveyancing attorney will typically handle the calculation and payment to SARS before the property can be registered in your name at the Deeds Office.
Transfer Duty Rates for 2025/2026
Transfer duty uses a progressive bracket system, similar to income tax. Properties valued at R1,210,000 or below attract no transfer duty at all.
| Property Value (R) | Rate of Tax |
|---|---|
| 0 – 1,210,000 | 0% |
| 1,210,001 – 1,663,800 | 3% of amount above R1,210,000 |
| 1,663,801 – 2,329,300 | R13,614 + 6% of amount above R1,663,800 |
| 2,329,301 – 2,994,800 | R53,544 + 8% of amount above R2,329,300 |
| 2,994,801 – 13,310,000 | R106,784 + 11% of amount above R2,994,800 |
| 13,310,001 and above | R1,241,456 + 13% of amount above R13,310,000 |
Source: SARS Transfer Duty rates, effective 1 April 2025.
When Is Transfer Duty Payable?
Transfer duty must be paid within six months of the date of acquisition. Late payment attracts a penalty calculated at 10% per annum for each completed month after the deadline. In practice, your attorney will ensure it is paid during the registration process.
VAT vs Transfer Duty
If you purchase a property from a VAT-registered vendor (such as a property developer), VAT at 15% is already included in the purchase price, and no additional transfer duty is payable. Transfer duty only applies to non-VAT transactions between individuals or non-VAT entities.