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Transfer duty explained
Transfer duty is a tax you pay to SARS (the South African Revenue Service) when you buy property. On a home costing R1 210 000 or less you pay nothing. Above that, the rate rises in steps. The table has been the same since 1 April 2025, and it applies to every buyer.
The rates
These rates have applied since 1 April 2026. The duty is worked out on the purchase price, or the market value if that is higher.
- Up to R1 210 000: no duty.
- R1 210 001 to R1 663 800: 3% of the value above R1 210 000.
- R1 663 801 to R2 329 300: R13 614 plus 6% of the value above R1 663 800.
- R2 329 301 to R2 994 800: R53 544 plus 8% of the value above R2 329 300.
- R2 994 801 to R13 310 000: R106 784 plus 11% of the value above R2 994 800.
- Above R13 310 000: R1 241 456 plus 13% of the value above R13 310 000.
There is no special exemption for first-time buyers. The same table applies to everyone, and you only pay on the part of the price that falls in each band.
Two worked examples
These are examples only. Use your own price to get your own figure.
A home at R1 500 000
The first R1 210 000 is free. The remaining R290 000 is taxed at 3%, so the duty is R8 700.
A home at R2 000 000
You start from R13 614, which is the duty at the top of the 3% band. The amount above R1 663 800 is R336 200. At 6% that adds R20 172. The total is R33 786.
Who pays and when
The buyer pays transfer duty, not the seller. Your transfer attorney (the conveyancer) usually asks you to pay it, along with their fees and other costs, before the property can be registered in your name. The attorney sends the money to SARS and gets a receipt or exemption certificate, which the Deeds Office needs before it will register the transfer.
Duty is separate from the attorney’s fees, the Deeds Office fees and the cost of registering a bond. See the full cost of buying a home for how these fit together.
When you pay VAT instead
You never pay both transfer duty and VAT on the same purchase. If the seller is a VAT vendor, such as a developer selling new homes, the sale is subject to VAT at 15% and is exempt from transfer duty. The VAT is usually included in the developer’s price, but check your offer to purchase to see how the price is stated.
If the seller is not a VAT vendor, which is the case for most private sellers, transfer duty applies. Read buying in a new development: VAT and transfer duty if you are looking at new stock.
Common questions about the amount
Duty depends on the price on the signed offer. If you negotiate the price down before signing, the duty falls with it. Once the offer is signed, the figure is fixed by that price.
You cannot add transfer duty to a bond in a simple way. Banks lend against the value of the property, and many buyers pay the duty and the transfer costs from savings. A few banks may agree to lend a little extra to cover costs, but that depends on your finances and the bank’s rules. Ask when you apply.
It also helps to know the duty before you make an offer. A buyer who finds out afterwards that they need R30 000 or more in cash can end up with a deal that falls through. Put the figure into your budget at the start, next to your deposit.
What to do next
- Pick a price you are considering and work out the duty with the bands above.
- Check whether the seller is a VAT vendor. If so, ask the agent how VAT is dealt with in the price.
- Add the duty to your other buying costs when you plan your savings.
The transfer duty calculator does the sums for you at any price. The transfer costs calculator adds attorney and Deeds Office costs as well. To plan your cash, read how much deposit to buy a house.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.