Transfer duty is a government tax charged on the purchase of immovable property in South Africa. If you're buying a home, it's one of the significant upfront costs you need to budget for. Here's how it works.
Who Pays Transfer Duty?
The buyer pays transfer duty. It's not a cost the seller carries. It's paid to SARS (the South African Revenue Service) via the transferring conveyancing attorney, before the Deeds Office will register the transfer.
How Is Transfer Duty Calculated?
Transfer duty is calculated on a sliding scale based on the purchase price. The current SARS rates took effect on 1 April 2026 and are unchanged from the previous year:
| Purchase Price | Rate |
|---|---|
| Up to R1,210,000 | 0% (no transfer duty) |
| R1,210,001 to R1,663,800 | 3% on the amount above R1,210,000 |
| R1,663,801 to R2,329,300 | R13,614 + 6% on the amount above R1,663,800 |
| R2,329,301 to R2,994,800 | R53,544 + 8% on the amount above R2,329,300 |
| R2,994,801 to R13,310,000 | R106,784 + 11% on the amount above R2,994,800 |
| Above R13,310,000 | R1,241,456 + 13% on the amount above R13,310,000 |
Examples
R900,000 property: No transfer duty (below the threshold).
R1,500,000 property: 3% on (R1,500,000 - R1,210,000) = 3% x R290,000 = R8,700.
R2,500,000 property: R53,544 + 8% on (R2,500,000 - R2,329,300) = R53,544 + R13,656 = R67,200.
When Is Transfer Duty Not Payable?
Transfer duty is not payable when you buy a newly built property directly from a VAT-registered developer. In this case, VAT (at 15% of the purchase price) is included in the price and paid by the developer - so the buyer effectively pays VAT instead of transfer duty. You can't pay both.
For resale properties (second-hand homes), transfer duty applies.
When Must Transfer Duty Be Paid?
Transfer duty must be paid to SARS before the Deeds Office will register the transfer. In practice, the conveyancing attorney collects this from the buyer and pays SARS on their behalf.
Payment is due within six months of the date of the sale agreement (the signed OTP). If it's paid late, SARS levies interest.
Tips
Budget for transfer duty before you make an offer. It's a significant cash requirement on properties above R1.21 million. It cannot be bonded (included in your home loan) unless specifically structured.
Use Homely's transfer cost calculator to get an accurate transfer duty figure and total transfer cost estimate for any property value.