Quick answer: Transfer duty is a tax paid to SARS on property transactions that are not subject to VAT. Whether you pay it depends on the price and the tax treatment of the transaction.
If you’re budgeting for a purchase, transfer duty is one of the biggest line-items that people forget to calculate properly.
Transfer duty calculator (how to estimate it)
To estimate transfer duty, you need:
- The property purchase price
- Whether the transaction is subject to VAT (VAT transactions generally do not attract transfer duty)
- Whether any exemption applies (rare and fact-specific)
For the most accurate answer: send your OTP and purchase price and we’ll confirm your duty and total transfer costs.
Contact SD Law for a transfer duty and transfer costs estimate
Transfer duty rate table (SARS – current brackets)
The table below is provided for convenience. Always confirm the latest rates on SARS before making financial decisions.
- R1 – R1,210,000: 0%
- R1,210,001 – R1,663,800: 3% of the value above R1,210,000
- R1,663,801 – R2,329,300: R13,614 + 6% of the value above R1,663,800
- R2,329,301 – R2,994,800: R53,544 + 8% of the value above R2,329,300
- R2,994,801 – 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 exceeding R13,310,000
Official SARS page: https://www.sars.gov.za/tax-rates/transfer-duty/
What does “no transfer duty” mean?
It usually means one of two things:
- The purchase price falls below the duty threshold; or
- The transaction is structured as VAT-inclusive (common in certain developer sales) and transfer duty is not charged.
Be careful: “no transfer duty” does not mean “no transfer costs”. You can still have conveyancing fees, Deeds Office fees, and bond-related fees.
How transfer duty fits into your total transfer costs
Transfer duty is only one component. For the full picture, read:
FAQ
Sectional title purchases can attract transfer duty in the same way as freehold purchases, depending on the purchase price and tax treatment.
Not automatically. The duty position is driven mainly by price and tax treatment. We’ll confirm your position when we review your transaction.
In many transactions it must be paid before registration. Timing depends on how the transfer is being processed.
Disclaimer: This page is general information and not legal advice. Always confirm current rates on SARS.