Transfer duty is a tax levied by the South African Revenue Service (SARS) on the purchase of immovable property. It is one of the most significant upfront costs a property buyer faces — and one of the most misunderstood. This guide explains exactly what transfer duty is, how it is calculated, what the 2026 rates are, and how to use our free calculator to determine your exact liability before making an offer.
What Is Transfer Duty?
Transfer duty is a tax on the value of a property transaction. It is governed by the Transfer Duty Act 40 of 1949 and is payable to SARS by the purchaser (buyer) before the property can be transferred into their name at the Deeds Office. Transfer duty must be paid within six months of the date of the sale agreement, or interest and penalties apply.
Transfer duty applies to all immovable property sales — residential, commercial, agricultural, and vacant land — with certain exceptions. The most important exception is that no transfer duty is payable on new properties purchased directly from a VAT-registered developer. In those transactions, VAT (15%) is included in the purchase price instead.
Transfer duty and VAT are mutually exclusive — you pay one or the other, never both. If you buy a new home from a developer registered for VAT, you pay no transfer duty. If you buy from an individual seller (the vast majority of property transactions), transfer duty applies and VAT does not.
Transfer Duty Rates — 2026 SARS Table
Transfer duty is calculated on a sliding scale. The first R1,100,000 of any property purchase attracts zero transfer duty — this threshold has been specifically set to protect first-time buyers and the affordable housing market.
| Property Value | Rate | Transfer Duty Payable |
|---|---|---|
| R0 – R1,100,000 | 0% | R0 |
| R1,100,001 – R1,512,500 | 3% on value above R1.1M | R0 – R12,375 |
| R1,512,501 – R2,117,500 | 6% on value above R1.5M | R12,375 – R48,675 |
| R2,117,501 – R2,722,500 | 8% on value above R2.1M | R48,675 – R97,075 |
| R2,722,501 – R12,100,000 | 11% on value above R2.7M | R97,075 – R1,128,600 |
| R12,100,001+ | 13% on full value | R1,573,000+ |
Use our free transfer duty calculator to calculate your exact liability for any purchase price. For a R1.5M property, transfer duty is R12,375. For R2M, it is R36,675. For R3M, it is approximately R107,575.
When Is Transfer Duty Paid?
Transfer duty must be paid to SARS before transfer can be registered at the Deeds Office. In practice, the transferring attorney manages this process — they collect the transfer duty from you as part of the settlement figures, pay SARS on your behalf, and obtain the SARS transfer duty receipt that is required to lodge the transfer documents at the Deeds Office.
The timeline is typically: Offer to Purchase signed → Bond approved → Transfer documents prepared → Transfer duty paid to SARS → SARS issues receipt → Documents lodged at Deeds Office → Transfer registered.
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Transfer Duty Exemptions — Who Does Not Pay?
- Properties below R1,100,000: Zero transfer duty — the most significant exemption and a key reason for strong demand at this price point.
- New property from VAT-registered developer: VAT is included in the price; no transfer duty is payable.
- Inherited property: Property inherited through a deceased estate may be exempt under certain conditions.
- Divorce settlements: Property transferred between spouses in terms of a divorce order is exempt.
- Government acquisitions: Certain government and public benefit organisation acquisitions are exempt.
- Transfer duty is paid by the buyer to SARS before the property can be transferred.
- Zero transfer duty on properties below R1.1M — keeping your purchase price under this threshold saves up to R12,375.
- New developments from VAT-registered developers attract VAT, not transfer duty — understand which applies before budgeting.
- The transferring attorney manages the payment — you pay them as part of settlement; they pay SARS.
- Use our calculator — the transfer duty calculator gives your exact liability in seconds.
