How transfer duty is worked out
Transfer duty is a tax on the value of property you acquire: a house, a sectional title unit, vacant land, or a real right in land. SARS also treats shares in a residential property company as property for this purpose. The duty is sliding, like income tax. Each band has a fixed amount, which is the full duty on every band below it, plus a percentage of the part of the price above the band's lower limit. Nothing is payable on the first R1,210,000, and the top rate of 13% applies only to the value above R13,310,000.
Worked example: a R2,500,000 house
A price of R2,500,000 falls in the R2,329,301 to R2,994,800 band. The duty is the band's fixed amount of R53,544, plus 8% of the R170,700 above R2,329,300, which is R13,656. Total transfer duty: R67,200, or 2.69% of the price. Although the marginal rate is 8%, the effective rate stays far lower because most of the price is taxed in the 0%, 3% and 6% bands.
The marginal rate matters when you negotiate. Knock R50,000 off the same house and the duty falls to R63,200, a saving of R4,000 on top of the lower price. Near the top of a band the effect is the same: every rand below a band limit is taxed at the lower rate, but there is no cliff, so a price one rand over a limit does not push the whole value into the higher band.
Who pays it, and by when
The buyer pays. The duty must reach SARS within six months of the date of acquisition. For a sale subject to a condition, such as the buyer getting a bond, SARS counts the six months from the day the parties sign the agreement, not from the day the condition is met, so a slow bond approval does not buy you extra time.
Pay late and SARS adds interest of 10% a year for each completed month after the six-month window. On the R67,200 above, paying 3 completed months late would add R1,680.00. Transfer duty has been paid electronically through eFiling since 1 April 2011. Your conveyancer handles the submission, either on eFiling or through a system linked to it, so in practice you pay the duty over to the conveyancer along with their fees.
When VAT applies instead
If the seller is a VAT vendor selling the property as part of its business, the sale carries VAT at 15% and no transfer duty. The two are mutually exclusive. Take a new R2,300,000 apartment bought from a VAT-registered developer: the price already includes R300,000 of VAT, so you pay no duty on top. Had you bought a similar unit for the same price from a private owner, you would pay R51,786 in transfer duty instead. Tick the VAT box in the calculator to see the VAT version. A seller who is not a VAT vendor cannot charge VAT, so most resales between private owners attract transfer duty.
Attorney fees and bond registration
Two sets of attorneys are involved when you buy with a bond. The transfer attorney (the conveyancer) registers the property in your name. The bond attorney, appointed by your bank, registers the mortgage bond over it. Both charge fees that rise with the value involved, plus Deeds Office fees and disbursements. The figures in this calculator are estimates on a stepped scale, so use them for planning and replace them with real quotes once you have an accepted offer. A cash buyer pays only the transfer side.
Budgeting for the whole purchase
Unless your bank agrees to finance them, the duty and attorney bills come out of your own pocket, on top of any deposit. On the R2,500,000 example that is R67,200 in duty before a cent of legal fees. Use the bond affordability calculator to see what price your income supports, then the bond repayment calculator to test the monthly instalment at your bank's rate. If you are selling a property at the same time, the capital gains tax calculator shows what the seller's side may cost.
This calculator gives general information on the SARS tables and is not tax or legal advice.
Frequently asked questions
How much is transfer duty on a R1,500,000 house?
R8,700. The first R1,210,000 is duty-free and the next R290,000 falls in the 3% band, so the duty is 3% of R290,000. That is 0.58% of the price.
Is there transfer duty on a property under R1.21 million?
No. Transfer duty is 0% on a value up to R1,210,000. You still pay the conveyancer for the transfer and, if you take a bond, the bond attorney, so budget for those even when the duty is nil.
Did the transfer duty rates change on 1 April 2026?
No. SARS says there are no changes for transactions from 1 April 2026, so the table that has applied since 1 April 2025 still applies. Which table you use depends on the date of acquisition, not the date the transfer is registered.
Does the buyer or the seller pay transfer duty?
The buyer. SARS places the liability on the person who acquires the property. The seller does not pay transfer duty, although a seller who makes a profit may owe capital gains tax on it.
Do I pay transfer duty when I buy from a developer?
Not if the developer is a VAT vendor and the sale is subject to VAT. A transaction cannot attract both VAT and transfer duty. The 15% VAT is then already inside the price you pay, so a VAT sale is not automatically cheaper than a private one.
When must transfer duty be paid?
Within six months of the date of acquisition. After that SARS charges interest of 10% a year for each completed month the duty is late. In practice your conveyancer collects the duty from you and pays it to SARS on eFiling.
Are the attorney and bond registration figures exact?
No. They are estimates on a stepped scale, including an allowance for Deeds Office fees. Attorneys' fees vary and their final accounts add disbursements, so ask your transfer attorney and the bank's bond attorney for written quotes.