# Transfer duty on property in South Africa - Canonical URL: https://bond.co.za/guides/transfer-duty - Author: Neil B - Published: 2026-09-21 - Last updated: 2026-09-21 1. [Home](https://bond.co.za/) 3. [Guides](https://bond.co.za/guides) 5. [Costs & fees](https://bond.co.za/guides/costs-and-fees) 7. Transfer duty on property [Costs & fees](https://bond.co.za/guides/costs-and-fees) Transfer duty on property in South Africa is the tax SARS charges the buyer when a property changes hands, worked out on the higher of the purchase price or market value. Nothing is payable at or below R 1 210 000; bond.co.za calculates duty of R 8 700 on a R1 500 000 purchase, as at 2026-09-06. By [Neil B](https://bond.co.za/expert) · Checked against published primary sources · Published 2026-09-21 · Last verified 2026-09-21 [Calculate your transfer duty](https://bond.co.za/transfer-cost-calculator)[Download the cost checklist](#cost-checklist) Transfer dutyCosts & feesNot legal or tax advice The basics ## What is transfer duty on property in South Africa? A once-off SARS tax on acquiring property — separate from the attorney and Deeds Office fees that make up the rest of your transfer costs. A tax on acquiring property Transfer duty is levied under the Transfer Duty Act on the acquisition of property in South Africa — a house, a sectional-title unit, a farm or a share in a property company. It is charged once per transaction, not annually, and it is payable whether you buy with cash or with a bond. Charged on price or market value SARS works the duty out on the higher of what you paid for the property and what SARS considers its reasonable market value. A price below market value does not shrink the duty bill — SARS simply values the property itself. Paid before registration The conveyancing attorney collecting the duty from the buyer and lodging it with SARS is a precondition for the Deeds Office registering the transfer. No duty receipt, no new title deed — which is why the duty is budgeted for upfront, alongside the other [transfer costs when buying a house](https://bond.co.za/guides/transfer-and-bond-costs). Source: South African Revenue Service (SARS), effective 2026-04-01, verified 2026-09-06. Transfer duty is one of three separate transfer costs a buyer pays; the conveyancing attorney fee and Deeds Office fee are covered in [attorney fees when buying a house](https://bond.co.za/guides/attorney-fees-buying-house-south-africa). The 2026 table ## What are the transfer duty rates in South Africa for 2026? The full SARS sliding scale effective 1 April 2026, unchanged for the 2026/27 year — computed straight from the table SARS publishes. SARS transfer duty brackets effective 1 April 2026 | Property value | Transfer duty | | --- | --- | | R 0 – R 1 210 000 | 0% on the first R1 210 000 | | R 1 210 001 – R 1 663 800 | 3% of the value above R1 210 000 | | R 1 663 801 – R 2 329 300 | R13 614 + 6% of the value above R1 663 800 | | R 2 329 301 – R 2 994 800 | R53 544 + 8% of the value above R2 329 300 | | R 2 994 801 – R 13 310 000 | R106 784 + 11% of the value above R2 994 800 | | R 13 310 001 and above | R1 241 456 + 13% of the value exceeding R13 310 000 | Source: South African Revenue Service (SARS), effective 2026-04-01, verified 2026-09-06. The same table applies to natural persons, companies, close corporations and trusts — trusts and companies do not get a separate, higher scale in the current SARS table. Worked examples ## How is transfer duty calculated on a property purchase? Duty follows the brackets above: 0% to the threshold, then each band's rate on only the value inside that band — not the whole price. Transfer duty worked examples by purchase price | Purchase price | SARS transfer duty | | --- | --- | | R 1 000 000 | R 0 — below the threshold, no duty | | R 1 500 000 | R 8 700 | | R 2 500 000 | R 67 200 | | R 5 000 000 | R 327 356 | Take the R1 500 000 example: the first R 1 210 000 of that price carries 0% duty, and only the R 290 000 above the threshold is taxed, at 3% — which is where the R 8 700 figure comes from. Every band works the same way: the rate inside a bracket applies only to the value inside that bracket, never to the full purchase price. This is why “how much is transfer duty” has no single answer, and why the question buyers actually need to budget for is the full cash-to-close picture. Run your own price through bond.co.za's [transfer cost calculator](https://bond.co.za/transfer-cost-calculator) — it applies this exact SARS table plus the conveyancing and Deeds Office fees to your number. ## Who pays transfer duties, the buyer or the seller? The buyer pays. Transfer duty is a tax on acquiring property, so SARS charges the purchaser — the person gaining a new asset — regardless of whether the purchase is cash or bond financed. The seller settles the estate agent's commission and their own bond cancellation attorney out of the sale proceeds. An offer to purchase can shift the duty to the seller, but that is a negotiated exception; buyer-pays-transfer-duty is the standard allocation in South African resale transactions. ## When must transfer duty be paid to SARS? Within six months of the date of acquisition, per South African Revenue Service (SARS) — and SARS charges interest on late payment. In practice the conveyancing attorney collecting the duty from the buyer lodges it with the transfer documents, because the Deeds Office will not register the new title deed without the duty receipt. For the full sequence from accepted offer to registered deed, see the [property transfer process](https://bond.co.za/guides/property-transfer-process-south-africa) step by step. Legitimate exemptions only ## How can you avoid paying transfer duty? There are real exemptions in the SARS framework — and a hard stop where 'structuring' becomes evasion. Buy at or below the threshold No transfer duty is payable on any property valued at R 1 210 000 or below, per the SARS table effective 2026-04-01. Below the threshold the duty is not deferred or rebated — it simply does not arise, though the attorney and Deeds Office fees still do. Buy new from a VAT-registered developer A sale by a VAT-registered seller — typically a developer selling a new unit — carries 15% VAT inside the price instead of transfer duty. The two taxes are mutually exclusive on one transaction, so a new development purchase pays no separate duty even at prices far above the threshold. Statutory exemptions Transfers to an heir out of a deceased estate, and certain transfers between spouses under a divorce order, are exempt from transfer duty under the Transfer Duty Act. These are the SARS framework's own carve-outs — confirmed case by case by the conveyancer lodging the transfer. Beyond these routes, transfer duty on an ordinary resale purchase is a statutory tax: understating the purchase price or splitting the transaction to duck a bracket is evasion, not planning, and SARS values the property at market value precisely to close that door. What a buyer can legitimately control is the rest of the cash-to-close bill — start with the [first-time buyer's full cost walkthrough](https://bond.co.za/guides/first-time-home-buyer-south-africa). Don't confuse the two ## How do you calculate the transfer costs for a property? Duty is one line of three on the transfer side of the deal — and on cheaper properties it is the line that is zero. Transfer duty is the SARS tax. Transfer costs are the full bill: the duty where it applies, plus the conveyancing attorney's fee and the Deeds Office transfer fee, which are charged on every purchase. A R1 000 000 buyer pays R0 duty but still pays the attorney and Deeds Office fees — and if a bond is involved, [bond registration costs](https://bond.co.za/guides/bond-registration-costs) on top. bond.co.za's [transfer cost calculator](https://bond.co.za/transfer-cost-calculator) runs all three lines — this exact SARS table, the Law Society conveyancing guideline and the Deeds Office schedule — on any purchase price, and adds the bond side when you toggle in a loan amount. For the full breakdown by price band, see [transfer costs when buying a house in South Africa](https://bond.co.za/guides/transfer-and-bond-costs). [Open the transfer cost calculator](https://bond.co.za/transfer-cost-calculator) ## The Complete Home Buyer Cost Checklist Every upfront cost on a South African home purchase — transfer duty included — who charges it, and when it is due, in a printable PDF. ### Get the Complete Home Buyer Cost Checklist A printable PDF checklist of every upfront cost, who charges it, and when it is due — so nothing catches you off guard. Free to use. bond.co.za is an independent educational resource — we do not provide credit, origination, legal or conveyancing services. [About our independence](https://bond.co.za/how-we-make-money). FAQ ## Quick answers about transfer duty Who pays transfer duty, the buyer or the seller?+ The buyer pays transfer duty in South Africa. It is a tax on acquiring property, so SARS charges the purchaser, not the seller, and it is payable whether the buyer pays cash or takes out a bond. The seller instead pays the estate agent's commission and their own bond cancellation costs out of the sale proceeds. Parties can shift the duty in the offer to purchase, but buyer-pays is the standard default. What are the transfer duty rates in South Africa for 2026?+ The 2026 SARS transfer duty table, effective 1 April 2026, charges nothing on property values up to R1 210 000; 3% above that to R1 663 800; R13 614 plus 6% to R2 329 300; R53 544 plus 8% to R2 994 800; R106 784 plus 11% to R13 310 000; and R1 241 456 plus 13% above R13 310 000. The same sliding scale applies to natural persons, companies and trusts. How much is transfer duty on a R1 million house?+ Nothing. Transfer duty on a R1 000 000 house is R0, because the SARS table effective 1 April 2026 charges no duty on any property valued at R1 210 000 or below. A buyer at that price still pays the conveyancing attorney fee and the Deeds Office transfer fee — those transfer costs apply even where transfer duty does not. How can I avoid paying transfer duty?+ Two genuine routes avoid transfer duty in South Africa: buy a property priced at R1 210 000 or below, where the rate is 0%, or buy a new property directly from a VAT-registered developer, where the sale carries VAT in the price instead of transfer duty — the two taxes never apply to the same transaction. Transfers to heirs from a deceased estate and certain transfers between spouses under a divorce order are also exempt. Beyond these, transfer duty is a statutory tax with no legitimate avoidance scheme. Is transfer duty the same as transfer costs?+ No. Transfer duty is the SARS tax on acquiring property, while transfer costs are the full set of fees that move a property into the buyer’s name: the transfer duty (where it applies), the conveyancing attorney’s fee and the Deeds Office transfer fee. On cheaper properties duty can be R0 while the other transfer costs still run into the tens of thousands of rand. When must transfer duty be paid to SARS?+ Transfer duty must be paid to SARS within six months of the date of acquisition, and SARS charges interest on late payment. In practice the conveyancing attorney handling the transfer collects the duty from the buyer and lodges the payment, together with the transfer documents, before the Deeds Office will register the new title deed. ## Informational disclaimer This guide is for information purposes only and does not constitute tax, legal or financial advice, and nothing on this page guarantees a specific fee, exemption or approval outcome. The transfer duty table changes when SARS revises it — always confirm the duty on your transaction with your conveyancing attorney and SARS before signing an offer to purchase. For advice on your specific transaction, consult a qualified conveyancing attorney or tax practitioner. Last updated: 2026-09-21. Transfer duty data last verified 2026-09-06. Next review expected when SARS revises the transfer duty table. ## Related guides and tools [ Transfer costs when buying a houseThe full three-line transfer bill by purchase price. ](https://bond.co.za/guides/transfer-and-bond-costs)[ Attorney fees when buying a houseThe 2026 LSSA tariff scale both attorneys charge on. ](https://bond.co.za/guides/attorney-fees-buying-house-south-africa)[ The property transfer processFrom accepted offer to registered deed, stage by stage. ](https://bond.co.za/guides/property-transfer-process-south-africa)[ Bond registration costsThe bond-side fees charged only when you finance. ](https://bond.co.za/guides/bond-registration-costs)[ Transfer cost calculatorDuty, attorney and Deeds Office fees on your own price. ](https://bond.co.za/transfer-cost-calculator)[ 2026/27 transfer duty thresholds unchangedSARS confirmed no changes to the current table. ](https://bond.co.za/news/transfer-duty-2026-27-thresholds-unchanged) Ready to move forward? ## Check what you could qualify for A free estimate on screen, based on the details you enter — then take it to the banks of your choice, knowing your likely bond amount and full transfer duty bill before you make an offer. [Check what you qualify for](https://bond.co.za/#qualify) Keep reading ## More in costs & fees The most recently updated guides in this category. [Costs & fees](https://bond.co.za/guides/costs-and-fees) [Rates clearance certificate in South Africa: who pays, and how long it takes](https://bond.co.za/guides/rates-clearance-certificate-south-africa) The municipality’s certificate that rates and service charges for the two years before transfer are paid — required under the Municipal Property Rates Act before the Deeds Office can register, and usually the seller’s cost. Updated 02 Nov 20267 min read [Costs & fees](https://bond.co.za/guides/costs-and-fees) [Costs included in a home loan: what can be financed](https://bond.co.za/guides/costs-included-home-loan) A standard South African bond covers the purchase price only — but the bank initiation fee can be added to the loan, some lenders lend above 100% to absorb upfront costs, and transfer duty can never be financed. Updated 27 Oct 20266 min read [Costs & fees](https://bond.co.za/guides/costs-and-fees) [Home loan insurance requirements](https://bond.co.za/guides/home-loan-insurance) South African bonds require two kinds of cover: homeowners insurance for the building and credit life as a bank condition — with premiums capped by regulation and your right to use your own insurer. Updated 20 Oct 20267 min read [Browse all costs & fees guides →](https://bond.co.za/guides/costs-and-fees) > This is the Markdown version of [https://bond.co.za/guides/transfer-duty](https://bond.co.za/guides/transfer-duty); that HTML page is the canonical version of this content.