South Africa Transfer Duty Explained: 2025 SARS Rates

Quick answer: South Africa transfer duty is a progressive tax the buyer pays to SARS when property changes hands. Under the table effective 1 April 2025, property up to R1,210,000 pays nothing, and rates then scale from 3 percent to 13 percent on the highest slice of value. A R2,000,000 home pays R33,786, a R5,000,000 home pays R327,356, and a R10,000,000 home pays R877,356. New builds from VAT-registered developers swap duty for 15 percent VAT, and foreign buyers pay exactly the same rates as locals.

What is South Africa transfer duty?

South Africa transfer duty is a national tax the buyer pays to SARS whenever immovable property changes ownership, and it is the largest once-off cost in most purchases. Nothing is due below R1,210,000; above that the rate steps from 3 percent up to 13 percent on the slice above R13,310,000, calculated on the price in the Offer to Purchase rather than the municipal valuation.

Transfer duty exists separately from the price you pay the seller and separately from the conveyancing fees you pay the attorney. It is a tax to the state, collected by SARS, and the Deeds Office will not register a property into your name until SARS has issued a transfer duty receipt confirming the duty is paid. In practice this means the duty must be settled before you legally own the home.

The rates that apply today took effect on 1 April 2025 and carry through the 2025 and 2026 buying season. They replaced the previous table and lifted the zero-rated threshold, which is good news for entry-level buyers. Understanding the table is the foundation of any honest property budget in Cape Town or anywhere else in the country.

The full SARS transfer duty table for 2025

The table below is the official SARS transfer duty structure effective 1 April 2025. The key principle is that it is marginal: each rate applies only to the portion of value that falls inside its bracket, not to the whole price. A fixed amount carries the duty already accumulated from lower brackets, and the percentage applies only to the slice above the bracket floor.

Property value (Rand)	Transfer duty payable
0 to 1,210,000	0 percent
1,210,001 to 1,663,800	3 percent of the value above R1,210,000
1,663,801 to 2,329,300	R13,614 plus 6 percent of the value above R1,663,800
2,329,301 to 2,994,800	R53,544 plus 8 percent of the value above R2,329,300
2,994,801 to 13,310,000	R106,784 plus 11 percent of the value above R2,994,800
13,310,001 and above	R1,241,456 plus 13 percent of the value above R13,310,000

Two features of this table shape buyer behaviour. First, the zero-rated band up to R1,210,000 means an entry-level apartment carries no transfer duty at all, which makes the sub-R1.21m segment genuinely cheaper on tax for first buyers. Second, the band above R2,994,800 charges 11 percent on every rand of the slice, so this is where duty starts to bite hard. A price negotiated down from R3,050,000 to R2,990,000 saves on price and drops you below the 11 percent line on that slice, a double saving worth pushing for.

How transfer duty is calculated: worked examples

Worked example one: R2,000,000

A R2,000,000 property falls inside the R1,663,801 to R2,329,300 bracket. The fixed amount for this bracket is R13,614, and the marginal rate is 6 percent on the value above R1,663,800.

• Fixed amount: R13,614
• Slice above R1,663,800: R2,000,000 minus R1,663,800 = R336,200
• 6 percent of R336,200 = R20,172
• Total transfer duty: R13,614 plus R20,172 = R33,786

Worked example two: R5,000,000

A R5,000,000 property sits in the R2,994,801 to R13,310,000 bracket. The fixed amount is R106,784, and the marginal rate is 11 percent above R2,994,800.

• Fixed amount: R106,784
• Slice above R2,994,800: R5,000,000 minus R2,994,800 = R2,005,200
• 11 percent of R2,005,200 = R220,572
• Total transfer duty: R106,784 plus R220,572 = R327,356

Worked example three: R10,000,000

A R10,000,000 property is still inside the same large 11 percent bracket, because the next step up does not begin until R13,310,000.

• Fixed amount: R106,784
• Slice above R2,994,800: R10,000,000 minus R2,994,800 = R7,005,200
• 11 percent of R7,005,200 = R770,572
• Total transfer duty: R106,784 plus R770,572 = R877,356

The pattern across the three is the heart of why transfer duty matters. As a share of price, duty rises from about 1.7 percent on R2,000,000 to 6.5 percent on R5,000,000 and 8.8 percent on R10,000,000. The tax scales faster than the price, so the higher you buy, the larger duty looms in your total cost. For the rest of the cost stack that sits alongside duty, see our full breakdown of the cost of buying property in Cape Town.

Purchase price	Bracket fixed amount	Marginal slice	Transfer duty
R2,000,000	R13,614	R336,200 at 6 percent	R33,786
R5,000,000	R106,784	R2,005,200 at 11 percent	R327,356
R10,000,000	R106,784	R7,005,200 at 11 percent	R877,356

VAT versus transfer duty: new build against resale

This is the most misunderstood point in the whole topic, and getting it wrong can distort a budget by hundreds of thousands of rand. A property purchase is taxed by VAT or by transfer duty, and the two never apply at the same time. Which one applies depends entirely on who is selling.

When you buy a new build from a developer registered for VAT, the price already includes 15 percent VAT, and the developer accounts to SARS for that VAT. You, the buyer, pay no transfer duty on top. When you buy a resale from a private seller who is not VAT-registered, you pay transfer duty per the SARS table and there is no VAT. The tax is simply built into how the transaction is structured.

Factor	New build from VAT developer	Resale from private seller
Tax that applies	15 percent VAT	Transfer duty
Who pays SARS	The developer	The buyer
Extra tax on top of the price	None, VAT is inside the price	Duty per the table
Example on R2,000,000	VAT included, R0 duty	R33,786 duty
Example on R5,000,000	VAT included, R0 duty	R327,356 duty
Example on R10,000,000	VAT included, R0 duty	R877,356 duty

The practical takeaway is that a VAT-inclusive new-build price is often friendlier on tax than it first appears, because there is no separate duty cheque to write at registration. The risk runs the other way too: never assume a new development is duty-free without checking, because not every developer is VAT-registered. Always confirm in the Offer to Purchase whether the price is VAT-inclusive or transfer-duty applicable, since guessing wrong throws your entire budget out.

Do foreign buyers pay more transfer duty?

Foreign buyers pay exactly the same South Africa transfer duty as citizens, with no surcharge, no premium band and no separate non-resident scale. A German or British buyer signing at R5,000,000 writes the same R327,356 duty cheque as a Cape Town local, and the R1,210,000 zero-rated threshold applies identically. Where non-residents genuinely differ is finance and exit. South African banks typically lend non-residents up to about 50 percent of value, so the cash portion of the deal is larger and the duty must be funded from that cash side before registration. On the eventual resale, section 35A obliges the conveyancer to withhold 7.5 percent of the price for an individual non-resident seller, 10 percent for a company and 15 percent for a trust, on any sale above R2,000,000. Budget duty as a local would, then plan the currency and withholding layers separately.

For the full picture on buying as a non-citizen, including finance and the legal eligibility rules, read our guides on buying Cape Town property as a foreigner and whether foreigners can buy property in South Africa. The currency side, including how to introduce and later repatriate funds, is covered in our guide to South African exchange control for property.

When and how you pay transfer duty

Transfer duty is paid during conveyancing, after the Offer to Purchase is signed and before the Deeds Office registers the property in your name. SARS requires payment within 6 months of the signature date, and a Cape Town registration usually completes in two to three months, so on a R5,000,000 purchase the R327,356 is requested well inside the window.

• Signature of the Offer to Purchase starts the 6 month SARS clock
• The conveyancer calculates the duty and calls for it with the purchase funds
• SARS issues the transfer duty receipt the Deeds Office requires before registration

Once conditions are met, the transferring attorney prepares the transfer documents, calculates the duty, and requests the amount from you along with the purchase funds held in trust.

The conveyancer then pays SARS, which issues a transfer duty receipt. That receipt is one of the documents the Deeds Office requires before it will register the property into your name. Without it, registration cannot proceed, which is why duty is effectively a precondition of ownership rather than an afterthought.

Insider tip: the six-month SARS clock runs from the date the last party signs the Offer to Purchase, not from the date your bond is approved or your suspensive conditions finally lapse. On sales where the seller is waiting on a subdivision, a body corporate consent or a deceased estate to be wound up, that clock can quietly expire while nothing looks wrong, and interest then accrues on the duty. Ask the conveyancer in writing which signature date they are counting from, and diarise month five.

Timing matters for cost. SARS requires transfer duty to be paid within six months of the date the sale agreement was signed; pay later and interest accrues on the outstanding amount. In a normal transaction this is never an issue, because registration usually completes within two to three months, well inside the window. For the full purchase timeline and where duty sits within it, see our step-by-step guide to buying property in Cape Town.

Transfer duty exemptions and special cases

• Zero-rated band: any property up to R1,210,000 attracts no transfer duty. This is the cleanest and most common exemption, and it makes entry-level stock genuinely cheaper on tax.
• VAT-registered new builds: because 15 percent VAT applies instead, these carry no transfer duty at all, regardless of price.
• Transfers by inheritance: property inherited under a will is generally exempt from transfer duty, though estate duty and other rules may apply.
• Transfers between spouses: in defined circumstances, such as on divorce or death, transfers between spouses can qualify for relief.
• Certain corporate and statutory transfers: specific transactions defined in the Transfer Duty Act may be exempt; these need professional advice.

Outside these defined cases, a standard arm’s-length purchase from a private seller pays duty per the SARS table. Do not assume an exemption applies to your situation, because SARS interprets each category narrowly. If you think a relief might apply, confirm it in writing with your conveyancer before you build it into a budget.

How transfer duty fits your total buying budget

Transfer duty dominates the once-off buying budget from about R3,000,000 upwards, and planning it first is the difference between a realistic offer and a stalled transfer. On a R2,000,000 resale the R33,786 duty is roughly 54 percent of the total add-on cost, so the conveyancing and Deeds Office fees around it still feel material. At R5,000,000 the R327,356 duty is about 86 percent of the add-on stack, and at R10,000,000 the R877,356 duty is about 92 percent, which turns every other fee into rounding. A cash buyer on a VAT-inclusive new build avoids the duty line entirely, while a bonded buyer adds bond registration on top. Work out the duty for your exact price using the SARS brackets, add roughly R28,000 to R76,000 for the surrounding fees, and only then decide what you can bid.

The table below shows transfer duty as a share of the total once-off cost on each worked example, for a cash buyer purchasing a resale. It makes clear how dominant duty becomes at higher prices.

Purchase price	Transfer duty	Total once-off add-on (approx.)	Duty as share of add-on
R2,000,000	R33,786	about R62,000	about 54 percent
R5,000,000	R327,356	about R379,000	about 86 percent
R10,000,000	R877,356	about R953,000	about 92 percent

The lesson is that at the family-home level and above, transfer duty effectively is your buying cost. Plan it first, then layer the smaller fees around it. A bonded buyer adds bond registration on top of these figures, while a cash buyer on a VAT-inclusive new build may avoid duty entirely. For the complete cost picture, including conveyancing scales and ongoing rates, our cost of buying property in Cape Town guide is the companion to this one.

Key takeaways on South Africa transfer duty

South Africa transfer duty is progressive and marginal: nothing below R1,210,000, then 3 percent to 13 percent applied slice by slice rather than to the whole price. A R2,000,000 resale costs R33,786, a R5,000,000 home costs R327,356, and a R10,000,000 home costs R877,356, which is why the duty line gets planned before the offer rather than after acceptance.

Pros of the current structure:

• Nothing is due under R1,210,000, keeping entry-level buying cheap on tax.
• The marginal brackets mean you are never taxed at the top rate on the whole price.
• New builds bundle VAT into the price, removing the separate duty cheque.
• Foreign buyers pay the same rates as locals, with no surcharge.

Points to watch:

• Duty rises steeply above R2,994,800, where 11 percent applies to the slice.
• It must be paid before registration, so it is a real cash demand, not a deferred cost.
• Assuming a new build is duty-free without checking VAT status is a common, costly error.
• Exemptions are interpreted narrowly, so confirm any relief with your conveyancer in writing.

Get the duty number right at the start, fold it into your full budget alongside conveyancing and rates, and the rest of the purchase becomes process rather than surprise.

What red flags should pause this Cape Town purchase?

Three transfer duty errors should pause a Cape Town purchase. A rounded 10 percent all-in rule of thumb instead of the SARS brackets misprices every deal above R2,994,800, where 11 percent applies to the slice. Forgetting that duty is due on a cash purchase leaves a R327,356 hole on a R5,000,000 buy. Off-plan payment structures that blur which amount triggers duty timing are the third.

• Using rounded “10% all-in” rules of thumb instead of SARS brackets on your exact price.
• Forgetting transfer duty is due on the purchase price even when you buy cash without a bond.
• Structuring off-plan payments without clarity on which amount triggers duty timing.

Which buyer profile fits transfer duty math?

Buyer profile changes the transfer duty math more than the property type does. A first-time buyer under R1,210,000 pays nothing at all. A family buyer at R5,000,000 writes a R327,356 cheque before registration. A new-build buyer from a VAT-registered developer pays 15 percent VAT inside the price and no duty. A foreign buyer pays exactly what a local pays.

Buyer profile	Price point	Transfer duty
First-time entry buyer	R1,200,000	R0, below the threshold
Family resale buyer	R5,000,000	R327,356
Prime Atlantic Seaboard buyer	R10,000,000	R877,356
New build from VAT-registered developer	Any price	R0, 15 percent VAT in the price
Non-resident foreign buyer	R5,000,000	R327,356, identical to a local

The practical consequence is that duty belongs in the offer calculation, not in the closing paperwork. A price negotiated from R3,050,000 down to R2,990,000 saves R60,000 on price and drops the balance below the 11 percent line, and a buyer comparing a VAT-inclusive new build against a resale at the same headline price is comparing two different totals.

If you would rather see the number than read the scale, the transfer cost calculator applies these exact bands to any price and shows which one your purchase lands in, alongside the attorney, Deeds Office and bond lines.