Transfer duty

Transfer duty in South Africa: the practical buyer’s guide

Transfer duty is a tax on many property purchases. It is only one part of the cash you may need before a home transfer can be registered.

Last reviewed: 22 August 2026

How it works

For a normal residential purchase that is not subject to VAT, transfer duty is calculated from the purchase price using progressive tax brackets. The purchaser normally pays it to SARS through the transferring attorney before registration.

For the 2026/27 tax year, there is no transfer duty on the first R1,210,000. Above that threshold, marginal rates increase through the published brackets; it is not a flat percentage of the full price.

Worked example

On a R1,800,000 property that is not a VAT sale, estimated transfer duty is R21,786: 3% of the amount from R1,210,001 to R1,663,800, plus 6% of the remaining amount. This is separate from legal, deeds-office and disbursement costs.

When might it not apply?

Where a sale is subject to VAT, transfer duty is generally not payable. The transaction facts and contract matter, so ask the transferring attorney or seller’s agent to confirm the tax treatment in writing.

Before signing an offer

• Confirm VAT or transfer-duty treatment.
• Get a transfer-cost estimate from the conveyancer.
• If borrowing, request a separate bond-registration estimate.
• Keep a buffer for variable bank and legal charges.

Source: SARS transfer-duty rates. General information only, not tax, legal or financial advice.