Transfer duty: the SARS sliding scale (2026/2027)
Transfer duty is progressive, meaning higher-value properties attract higher marginal rates. Crucially, the first R1,210,000 of value is duty-free, which is why so many first-time buyers in the affordable market pay no transfer duty at all.
| Property value | Transfer duty |
|---|---|
| R0 – R1,210,000 | 0% |
| R1,210,001 – R1,663,800 | 3% of the value above R1,210,000 |
| R1,663,801 – R2,329,300 | R13,614 + 6% of the value above R1,663,800 |
| R2,329,301 – R2,994,800 | R53,544 + 8% of the value above R2,329,300 |
| R2,994,801 – R13,310,000 | R106,784 + 11% of the value above R2,994,800 |
| R13,310,001 and above | R1,241,456 + 13% of the value above R13,310,000 |
Want a precise figure for your price? Our bond & cost calculator applies this exact table automatically.
When VAT replaces transfer duty
A property transaction is subject to either VAT or transfer duty — never both. The deciding factor is whether the seller is a registered VAT vendor selling in the course of their business, which is typically the case when you buy a brand-new unit directly from a developer.
- New development from a VAT vendor: the price includes 15% VAT, which the developer pays to SARS. You pay no transfer duty. Because the VAT is already in the advertised price, you do not pay it again on top.
- Resale between private individuals: the seller is usually not a VAT vendor, so transfer duty applies on the sliding scale above.
This is why our calculator includes a “new development” toggle — flip it on and the transfer duty correctly drops to R0.
Common transfer duty exemptions
Several transactions are exempt from transfer duty regardless of value. The most frequently encountered are:
- Deceased estate inheritances: property inherited from a deceased estate, whether under a will or by intestate succession, is exempt from transfer duty. The heir does not pay duty on property left to them.
- Transfers between spouses: property awarded to a spouse as a result of a divorce settlement or the death of a partner is exempt.
- Cancelled transactions: where a sale is legally cancelled, duty already paid can generally be refunded by SARS.
Note that an exemption from duty does not remove the transfer costs — the conveyancing attorney still earns a fee for processing the transfer and registering it at the Deeds Office.
What makes up your transfer costs
When attorneys quote “transfer costs”, they are bundling several items together:
- Conveyancing fee: the attorney’s professional fee, which scales with the property value on the recommended guideline tariff.
- Deeds Office registration fee: a statutory, banded charge for recording the transfer.
- Posts, petties & FICA: a flat disbursement allowance for admin, searches and compliance.
- Transfer duty: where applicable, collected by the attorney and paid to SARS (this is the tax, not a fee).
And then there are bond costs
If you are financing the purchase, a separate set of bond costs applies. The bank appoints a bond attorney to register the mortgage, and you pay that attorney’s fee (which scales with the bond amount), a Deeds Office bond registration fee, and a once-off bank initiation fee of R6,037.50 — the maximum allowed under the National Credit Act. Our calculator separates transfer costs and bond costs so you can see exactly where every rand goes.