Transfer Duty Calculator
Enter a property purchase price to calculate the exact SARS transfer duty payable. The bracket table highlights which portion of the price falls in each duty band.
Property Purchase Price
2025/26 Transfer Duty Table
| Property value | Rate |
|---|---|
| R 0 – R 1 100 000 | Exempt |
| R 1 100 000 – R 1 512 500 | 3.00% |
| R 1 512 500 – R 2 117 500 | 6.00% |
| R 2 117 500 – R 2 722 500 | 8.00% |
| R 2 722 500 – R 12 100 000 | 11.00% |
| R 12 100 000+ | 13.00% |
Results
Transfer Duty Payable
R 29 625,00
Effective rate: 1.65%
Purchase Price
R 1 800 000
Effective Rate
1.65%
Transfer duty is paid by the buyer to SARS before the property can be registered. Due within 6 months of the sale agreement date.
How the Transfer Duty Calculator Works
Transfer duty is a tax collected by SARS on the transfer of ownership of fixed property in South Africa. It applies to all property purchases where the seller is not a registered VAT vendor. The duty is calculated on the purchase price (or the market value, if higher) using a progressive bracket system - similar to income tax brackets.
Properties priced up to R1 100 000 are exempt from transfer duty. Above this threshold, duty is calculated on the amount in each bracket: 3% applies to the portion between R1 100 001 and R1 512 500; 6% applies to R1 512 501–R2 117 500; 8% applies to R2 117 501–R2 722 500; 11% applies to R2 722 501–R12 100 000; and 13% applies to amounts above R12 100 000.
The calculator shows the tax contribution from each bracket, making it easy to see how much of the total duty falls in each rate band. Like income tax, only the amount within a bracket is taxed at that bracket's rate - not the entire purchase price.
Transfer duty must be paid to SARS by the purchaser within 6 months of the date of acquisition. Your transfer attorney handles the payment and obtains the SARS receipt, without which the Deeds Office will not register the transfer. Late payment attracts interest at the prescribed rate.
How to Use This Calculator
- 1
Enter the purchase price
Use the price agreed in the signed offer to purchase. Transfer duty is calculated on the purchase price or the market value (whichever is higher), so SARS will query transactions significantly below comparable market values.
- 2
Check the bracket breakdown
The highlighted bracket shows which rate applies to the top portion of your purchase price. Use this to understand how close the price is to the next bracket threshold and whether negotiating the price down slightly would reduce duty.
- 3
Check the exemption threshold
If the purchase price is at or below R1 100 000, no transfer duty is payable. First-time buyers purchasing in this range save a significant amount in upfront costs - the difference between R1 099 000 and R1 101 000 is R33 (transfer duty on R1 000 at 3%), but the difference between R1 100 000 and R1 101 000 is R30 (3% × R1 000 above the threshold).
- 4
Add to your upfront cost budget
Use the transfer duty figure alongside the Bond Transfer Cost Calculator to build a complete picture of all cash needed on transfer day. Transfer duty is often the largest single upfront cost after the deposit.
Frequently Asked Questions
- Who pays transfer duty in South Africa - the buyer or the seller?
- The buyer pays transfer duty. It is the buyer's legal obligation under the Transfer Duty Act. The seller has no liability for transfer duty. However, in negotiations, the seller may agree to contribute toward the buyer's transfer costs as part of the sale agreement - this is a commercial arrangement, not a legal obligation.
- Is transfer duty exempt for first-time buyers in South Africa?
- There is no first-time buyer exemption from transfer duty as a general rule. The exemption applies to purchase price only: properties priced at or below R1 100 000 are exempt from transfer duty regardless of whether the buyer is a first-time buyer. First-time buyers purchasing above this threshold pay the same transfer duty as other buyers. The FLISP subsidy provides separate assistance for qualifying first-time buyers.
- What is the difference between transfer duty and VAT on property?
- Transfer duty and VAT are mutually exclusive - you pay one or the other, not both. Transfer duty applies when the seller is a private individual (not a VAT vendor). VAT at 15% applies when the seller is a registered VAT vendor, typically a property developer selling new residential units or any commercial property seller who is VAT-registered. If you buy from a developer, confirm upfront which applies - a VAT-inclusive price on a R2 million property means R261 000 in VAT, versus R105 000 in transfer duty.
- Can transfer duty be financed through the home loan?
- No. Transfer duty must be paid in cash directly to SARS through your transfer attorney. It cannot be added to the bond or financed. This is a firm requirement - the Deeds Office will not register the transfer without the SARS transfer duty receipt. Budget for this cost as part of the cash required at transfer, alongside attorney fees and the deposit.
- What happens if property is purchased below market value?
- SARS assesses transfer duty on the higher of the purchase price or the market value. If you buy a property from a family member at a discount, or in a situation where the price appears significantly below comparable sales, SARS may query the transaction and assess duty on the market value. Transfers between spouses, inheritances, and donations have separate rules and may attract donation tax or estate duty instead of transfer duty.
- Is transfer duty payable on the purchase of shares in a property company?
- Yes, in most cases. Purchasing shares in a company that owns property is treated as acquiring property for transfer duty purposes - SARS looks through the share transaction to the underlying property. This rule prevents avoidance of transfer duty by structuring property ownership through companies. The duty is calculated on the proportionate value of property owned by the company corresponding to the shares acquired.