Question 1

What is the transfer duty threshold in South Africa for 2026?

Accepted Answer

Properties purchased for R1,100,000 or less pay zero transfer duty. This applies to all buyers — there is no first-time buyer exemption beyond this threshold (unlike some countries). The R1.1m threshold was set for the 2025/2026 tax year and is expected to be confirmed for 2026/2027.

Question 2

What are the SARS transfer duty rates for 2026/2027?

Accepted Answer

SARS transfer duty 2026 brackets: R0–R1,100,000 = 0%; R1,100,001–R1,512,500 = 3% of amount above R1,100,000; R1,512,501–R2,117,500 = R12,375 + 6% above R1,512,500; R2,117,501–R2,722,500 = R48,675 + 8% above R2,117,500; R2,722,501–R12,100,000 = R97,075 + 11% above R2,722,500; Above R12,100,000 = R1,128,600 + 13% above R12,100,000.

Question 3

What is the difference between transfer duty and transfer costs?

Accepted Answer

Transfer duty is a SARS tax paid to the government, calculated purely on the purchase price. Transfer costs (conveyancing costs) are fees paid to the conveyancer/attorney for the legal work of registering the property — including deeds office fees, Postmaster General charges, and attorney fees. Transfer costs are a separate, additional expense.

Question 4

When is transfer duty payable?

Accepted Answer

Transfer duty must be paid within 6 months of the date of acquisition (date of sale agreement). In practice, the conveyancer collects transfer duty from the buyer as part of the bond registration process. Non-payment results in interest charges. Transfer duty is confirmed before the property is registered in the Deeds Office.

Question 5

Do I pay transfer duty on a new development property?

Accepted Answer

No. When buying a property directly from a developer who is registered for VAT, you pay VAT (15%) instead of transfer duty. The VAT is typically included in the purchase price. You cannot pay both transfer duty and VAT on the same transaction.

Bracket	Rate	Taxable Amount	Tax in Bracket
Exempt threshold	0%	R0 – R1,100,000 = no duty
R1,100,001 – R1,512,500	3%	R 412 500	R 12 375
R1,512,501 – R2,117,500	6%	R 287 500	R 17 250
Total Transfer Duty			R 29 625

Purchase Price	Rate	Base Amount
R0 – R1,100,000	0%	Exempt
R1,100,001 – R1,512,500	3%	0 + 3% above R1.1m
R1,512,501 – R2,117,500	6%	R12,375 + 6% above R1,512,500
R2,117,501 – R2,722,500	8%	R48,675 + 8% above R2,117,500
R2,722,501 – R12,100,000	11%	R97,075 + 11% above R2,722,500
Above R12,100,000	13%	R1,128,600 + 13% above R12.1m

Transfer Duty	Eff. Rate	Total
R 29 625	1,65%	R 1 829 625
R 79 275	3,17%	R 2 579 275
R 259 600	6,18%	R 4 459 600

Transfer Duty Calculator South Africa 2026/2027

How Transfer Duty Works in South Africa

SARS Transfer Duty Brackets 2026/2027

Worked Example: R2,500,000 Property

Compare Transfer Duty Across Properties

Frequently Asked Questions

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