Transfer duty on the purchase price, using the SARS sliding scale.
Transfer duty
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Effective rate
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Price plus duty
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Buy a home for R2,000,000 and the duty is built up band by band, not as one flat percentage. The first R1,210,000 of the price carries no duty at all. The slice from R1,210,000 to R1,663,800, which is R453,800, is charged at 3%, giving R13,614. The slice from R1,663,800 up to your R2,000,000, which is R336,200, is charged at 6%, giving R20,172. Add the two and the transfer duty is R33,786. Against a R2,000,000 price that is an effective rate of just 1.69%, and your total cash to transfer the property is R2,033,786 before conveyancing fees.
Price slice
Duty
R0 to R1,210,000 at 0%
R0
R1,210,000 to R1,663,800 at 3%
R13,614
R1,663,800 to R2,000,000 at 6%
R20,172
Total transfer duty
R33,786
How it is calculated
Transfer duty is a sliding-scale tax that SARS charges on the acquisition of fixed property. It is worked out in bands, so only the portion of the price inside each band attracts that band's rate, which keeps the effective rate well below the top marginal rate of 13%. Purchases at or below R1,210,000 escape duty entirely, a threshold that shelters most first-time and lower-value buys. The duty is paid by the buyer and is separate from the conveyancing attorney's fees, which can add a meaningful amount on top. One important exception applies: where the seller is registered for VAT and the sale is a taxable supply, VAT at 15% is charged instead of transfer duty.
Frequently asked questions
How much transfer duty do I pay on a property in South Africa?
Transfer duty is charged on a sliding scale on the purchase price. No duty is payable at or below R1,210,000. Above that, the rate rises in bands from 3% up to 13% on the portion in the top band. Transfer duty does not apply where the seller is registered for VAT and the sale attracts VAT at 15% instead.
Is transfer duty the same as VAT on property?
No, they are mutually exclusive. Transfer duty applies when the seller is not VAT-registered or the sale is not a taxable supply. When the seller is a VAT vendor selling a business asset, VAT at 15% is charged instead and no transfer duty is payable. Buying a newly developed home from a developer typically falls into the VAT category, while buying from a private individual falls into the transfer-duty category.
When is the R1,210,000 nil-duty threshold applied?
The threshold applies to the full purchase price. If the price is at or below R1,210,000, no transfer duty is payable at all. If the price is even one rand above that level, the entire sliding scale applies to the full amount from zero, not just the amount above the threshold, which is why this calculator computes duty on the whole price and not on an excess.
Who pays transfer duty and when is it due?
Transfer duty is the buyer's liability and must be paid to SARS within six months of the date of the sale agreement. The conveyancing attorney typically collects it and pays it on the buyer's behalf before lodging the transfer documents at the Deeds Office. Registration cannot proceed until SARS issues a transfer-duty receipt confirming payment.