2026-05-20
What is Transfer Duty?
Transfer duty is a tax levied by SARS (South African Revenue Service) when you buy property in South Africa. It's paid by the buyer, not the seller — and it's one of the biggest upfront costs to budget for.
Who pays transfer duty?
The buyer pays transfer duty. It's not negotiable — it goes directly to SARS, not to the estate agent or seller.
When is transfer duty zero?
If you buy a property for R1,100,000 or less, you pay no transfer duty. This is the biggest bracket and covers a large portion of first-time buyer purchases.
The SARS sliding scale (2024/25)
Rates valid for 2024/25. This article was updated on 2026-05-20 to keep the published date while making the seasonality clear.
Transfer duty is calculated on a sliding scale. You don't pay the top rate on the full amount — you pay progressively:
| Property value | Rate |
|---|---|
| R0 – R1,100,000 | 0% |
| R1,100,001 – R1,512,500 | 3% on the portion above R1,100,000 |
| R1,512,501 – R2,117,500 | R12,375 + 6% on the portion above R1,512,500 |
| R2,117,501 – R2,722,500 | R48,675 + 8% on the portion above R2,117,500 |
| R2,722,501 – R12,100,000 | R97,075 + 11% on the portion above R2,722,500 |
| R12,100,001+ | R1,128,600 + 13% on the portion above R12,100,000 |
Example calculation
Property price: R1,500,000
The portion above R1,100,000 is R400,000. Transfer duty = 3% × R400,000 = R12,000
Property price: R2,000,000
- On the R412,500 between R1,100,001 and R1,512,500: R12,375
- On the R487,500 between R1,512,501 and R2,000,000: 6% × R487,500 = R29,250
- Total: R41,625
When is transfer duty due?
Transfer duty must be paid to SARS within 6 months of the sale agreement being signed. In practice, your conveyancing attorney handles the payment on your behalf as part of the transfer process.
Transfer duty vs. transfer fees
These are two different costs that are often confused:
- Transfer duty — tax paid to SARS
- Transfer fee — conveyancer's professional fee for handling the transfer of ownership
Both are upfront costs, but they go to different parties. Use our Bond Cost Calculator to see both itemised for your purchase price.