How transfer duty is calculated
Transfer duty is a tax on the acquisition of property, set out in the Transfer Duty Act. It works like income tax brackets: each rate applies only to the part of the value that falls inside that bracket.
Table for properties acquired on or after 1 April 2025
| 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 |
The formula
Transfer duty = bracket base + bracket rate × (value − bracket start) Value = the greater of the purchase price and fair market value
Official duty vs estimated fees
The transfer duty figure is an official calculation from the SARS table. Attorney fees are not set by law: conveyancers usually work from a Law Society guideline tariff, but fees can be negotiated and differ between firms. That is why Balawise asks you to enter the amounts on your quotes rather than inventing a fee. Attorney fees attract VAT; transfer duty and deeds office fees do not.
Worked examples
First home for R1 500 000
Only the part of the price above R1 210 000 is taxed, at 3%. R290 000 × 3% = R8 700.
How the duty is calculated
- Purchase price
- R1 500 000.00
- Table used
- Properties acquired on or after 1 April 2025
- Bracket
- 3% of the value above R1 210 000
- Transfer duty Official
- R8 700.00
Family home for R2 500 000
The price falls in the 8% bracket. Duty is R53 544 plus 8% of the R170 700 above R2 329 300, which is R67 200.
How the duty is calculated
- Purchase price
- R2 500 000.00
- Table used
- Properties acquired on or after 1 April 2025
- Bracket
- R53 544 + 8% of the value above R2 329 300
- Transfer duty Official
- R67 200.00
New apartment bought from a VAT-registered developer
The sale is subject to VAT (already included in the price), so no transfer duty is payable.
This sale is subject to VAT, so no transfer duty is payable. Check the sale agreement: the price should state that VAT is included.
How the duty is calculated
- Purchase price
- R1 950 000.00
- VAT included in the price15/115 of a VAT-inclusive price
- R254 347.83
- Transfer dutyNot payable on a sale subject to VAT
- R0.00
Frequently asked questions
Who pays transfer duty?
The buyer pays transfer duty. The conveyancing attorney collects it and pays it to SARS, and the property cannot be registered in your name until SARS has received it.
Is there transfer duty on properties under R1.21 million?
No. For properties acquired on or after 1 April 2025, no transfer duty is payable if the value is R1 210 000 or less. SARS confirmed there were no changes to the table from 1 April 2026.
Do I pay transfer duty on a new development?
Usually not. If the seller is a VAT vendor and the sale is subject to VAT — common with developers — VAT is charged instead and no transfer duty is payable. The VAT is normally already in the advertised price.
Is transfer duty the same as transfer costs?
No. Transfer duty is the tax paid to SARS. Transfer costs also include the conveyancer’s fee, VAT on that fee, deeds office fees and other disbursements, and — if you take a bond — bond registration costs.
Which value is used — the price or market value?
Transfer duty is calculated on the greater of the purchase price and the fair market value of the property.