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Transfer Duty in South Africa 2026 — How Much Will You Pay?

The full 2026 transfer duty table, worked examples on popular property prices, and when transfer duty is zero.

Zero duty threshold

R1.1 million

Rates range

3% to 13%

On R2m property

~R62,250

Payment deadline

6 months

Transfer Duty Table — South Africa 2026

Property Value	Transfer Duty Rate	Fixed Portion	Duty Payable
R0 – R1,100,000	0%	—	R0
R1,100,001 – R1,375,000	3% on excess over R1.1m	—	Up to R8,250
R1,375,001 – R1,925,000	6% on excess over R1.375m	R8,250	R8,250 + 6%
R1,925,001 – R2,475,000	8% on excess over R1.925m	R41,250	R41,250 + 8%
R2,475,001 – R11,000,000	11% on excess over R2.475m	R85,250	R85,250 + 11%
Above R11,000,000	13% on excess over R11m	R1,026,000	R1,026,000 + 13%

Transfer Duty on Common Property Prices — 2026

Purchase Price	Transfer Duty	Conveyancing Fees (approx)	Bond Reg Fees (approx)	Total Transfer Costs (approx)
R900,000	R0	R18,000–R22,000	R15,000–R18,000	R33,000–R40,000
R1,100,000	R0	R22,000–R27,000	R18,000–R22,000	R40,000–R49,000
R1,500,000	R22,500	R26,000–R32,000	R21,000–R26,000	R69,500–R80,500
R2,000,000	R62,250	R33,000–R40,000	R26,000–R32,000	R121,250–R134,250
R2,500,000	R106,250	R40,000–R48,000	R31,000–R37,000	R177,250–R191,250
R3,000,000	R161,250	R46,000–R55,000	R36,000–R43,000	R243,250–R259,250

Transfer Duty vs VAT — Which Applies to Your Purchase?

One of the most important distinctions in South African property transactions is whether you pay transfer duty or VAT — you pay one, but never both. Transfer duty applies when you buy from a private seller (a natural person or entity not registered for VAT in respect of property transactions). VAT applies when you buy from a developer or a VAT vendor selling in the course of their enterprise.

When VAT applies (new developments), the purchase price is typically quoted inclusive of VAT. You don't write a separate cheque to SARS — it's embedded in the price. This is actually a more transparent cost in many ways, and on properties above R1.925 million, buying from a developer can sometimes work out cheaper than buying the equivalent second-hand property because of the transfer duty difference.

Always ask your attorney or estate agent early in the process: is this a transfer duty or VAT transaction? Your cost-of-acquisition calculation changes significantly depending on the answer.

Strategies to Minimise Transfer Costs When Buying Property in South Africa

Transfer duty itself is fixed by law and cannot be negotiated or avoided (legally). However, there are strategies to manage the broader cost of transfer. First, buy at a price point just below a threshold if possible. The jump from R1.1m to R1.101m triggers 3% duty on R1,000 — a small amount. But the jump from R1.924m to R2.0m pushes you into the 8% bracket on everything above R1.925m.

Second, negotiate hard on conveyancing and bond registration fees. While attorney fees are set by tariff guidelines, there can be room to negotiate, especially if the same attorney is handling both transfer and bond registration. Bundling often results in a modest discount.

Third, ensure your agreement of sale clearly specifies who pays what. Some sellers inflate the price to recover transfer costs on the buyer's behalf — this is legal, but it inflates your transfer duty calculation (since duty is on the purchase price), potentially costing you more than the seller's contribution saves you.

Frequently Asked Questions

In 2026, no transfer duty is payable on properties purchased for R1,100,000 or less. This threshold applies to natural persons (individuals). Companies and trusts pay transfer duty from the first rand, with no threshold exemption.

Transfer duty is calculated on a sliding scale. The first R1.1 million is exempt. From R1.1m to R1.375m: 3% on the excess. From R1.375m to R1.925m: R8,250 plus 6% on the excess over R1.375m. It increases to 8%, 11%, and 13% for higher price brackets. The buyer pays transfer duty, not the seller.

The buyer pays transfer duty in South Africa. It is payable to SARS within 6 months of the date of the sale agreement. In practice, your conveyancing attorney handles this on your behalf and includes it in the overall transfer costs estimate they provide when you sign the agreement of sale.

No. When buying directly from a developer (first sale of a newly built property), the developer charges VAT (15%) instead of transfer duty. You do not pay transfer duty on new builds. This can be a significant saving on more expensive new developments — and also means you don't pay a second time when you eventually sell.

Transfer duty is a buyer's obligation by law, not negotiable between parties. However, you can negotiate the purchase price downward to offset the transfer cost burden. In slower property markets, some sellers offer to subsidise transfer costs as part of the deal — always ask.

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Disclaimer: This page is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.