Property Transfer Duty Calculator South Africa
Calculate the total cost of buying a property in South Africa, including transfer duty, conveyancing fees, deeds office fees, and bond registration costs.
This is the amount you are borrowing from the bank. Typically 80-100% of the purchase price.
Cost Breakdown
Quick Reference: Buying Costs by Property Price
The table below shows estimated total buying costs for common property price points. Bond costs assume a 90% home loan. Cash purchases exclude bond registration and initiation fees.
| Property Price | Transfer Duty | Total (with Bond) | Total (Cash) | % of Price |
|---|---|---|---|---|
| R500 000 | R0 | R37 950 | R18 200 | 7.6% |
| R1 000 000 | R0 | R47 700 | R23 200 | 4.8% |
| R1 500 000 | R12 000 | R64 950 | R37 700 | 4.3% |
| R2 000 000 | R41 625 | R99 325 | R69 825 | 5.0% |
| R3 000 000 | R127 600 | R194 800 | R160 800 | 6.5% |
| R5 000 000 | R347 600 | R433 800 | R390 800 | 8.7% |
Transfer Duty Rates in South Africa (2025/2026)
Transfer duty is a tax levied by SARS on the acquisition of property in South Africa. The rates below apply to all property purchases from 1 March 2025 and are based on a sliding scale. The more expensive the property, the higher the percentage of transfer duty payable.
| Property Value | Rate |
|---|---|
| R0 – R1,100,000 | 0% |
| R1,100,001 – R1,512,500 | 3% of value above R1,100,000 |
| R1,512,501 – R2,117,500 | R12,375 + 6% of value above R1,512,500 |
| R2,117,501 – R2,722,500 | R48,675 + 8% of value above R2,117,500 |
| R2,722,501 – R12,100,000 | R97,075 + 11% of value above R2,722,500 |
| Above R12,100,000 | R1,128,600 + 13% of value above R12,100,000 |
What Are the Total Costs of Buying a Property?
The purchase price of a property is only part of the cost. Buyers must budget for several additional expenses that can add 3% to 8% to the total outlay. Understanding these costs upfront helps you plan your finances and avoid surprises when it comes time to close the deal.
The main costs include transfer duty (a tax paid to SARS), conveyancing fees (attorney fees for processing the property transfer), deeds office fees (the government registration fee), and rates clearance (a certificate from the municipality confirming all rates and taxes are paid). If you are financing the purchase with a home loan, you will also pay bond registration fees (attorney fees for registering the bond) and a bond initiation fee charged by the bank.
For example, a property purchased for R1,500,000 with a 90% home loan will incur approximately R64 950 in total buying costs. Of this, transfer duty accounts for R12 000, with the remainder made up of attorney fees, bank charges, and government fees.
First-Time Homebuyer? Transfer Duty Exemption
Good news for first-time buyers: if you are purchasing a property valued at R1,100,000 or less, you pay zero transfer duty. This exemption applies to all buyers (not just first-time purchasers), but it is particularly beneficial for first-time homebuyers entering the market at lower price points.
Even if your property exceeds R1,100,000, the transfer duty on the first R1,100,000 is still zero. For instance, on a R1,200,000 property, you only pay 3% on the R100,000 above the threshold, which comes to just R3,000 in transfer duty.
Additionally, if you are buying a newly built property from a developer who is registered as a VAT vendor, the purchase price already includes VAT (15%), and no transfer duty is payable. This is a significant saving, especially on properties above R1,100,000.
Transfer Duty vs Bond Costs Explained
It is important to understand the difference between transfer duty and bond registration costs, as they are separate expenses that serve different purposes in the property transaction.
Transfer duty is a government tax paid to SARS when property ownership changes hands. It is calculated on the purchase price of the property and goes to the national fiscus. The transferring attorney (conveyancer) collects this amount from the buyer and pays it to SARS. A transfer duty receipt from SARS is required before the property can be registered in the new owner's name.
Bond registration costs are the attorney fees for registering the mortgage bond (home loan) at the Deeds Office. The bank appoints a bond attorney to handle this process. These costs are only applicable if you are financing the purchase with a home loan. A cash buyer does not incur bond registration costs.
In addition to the bond attorney's fees, the bank charges a bond initiation fee (typically around R6,000) for processing and granting the home loan. This is a once-off fee charged when the loan is set up.
Frequently Asked Questions
How much is transfer duty on a R1 million property?
Transfer duty on a R1 million property in South Africa is R0 (zero). Under the current 2025/2026 transfer duty rates, all properties valued at R1,100,000 or less are completely exempt from transfer duty. This means a buyer purchasing a property for R1,000,000 pays no transfer duty to SARS, although they will still need to budget for conveyancing fees, deeds office fees, and other buying costs.
Who pays transfer duty?
The buyer of the property is responsible for paying transfer duty. It is a tax levied by the South African Revenue Service (SARS) on the acquisition of property. The conveyancing attorney handling the transfer will collect the transfer duty amount from the buyer, along with the other transfer costs, and pay it to SARS. A transfer duty receipt must be obtained from SARS before the Deeds Office will register the property in the buyer's name.
Is transfer duty the same as stamp duty?
Transfer duty has replaced what was historically known as stamp duty on property transactions in South Africa. While some people still refer to it as stamp duty, the correct legal term is transfer duty, which is governed by the Transfer Duty Act, 1949. The concepts are similar — both are taxes on the transfer of property — but transfer duty is the term used in current South African law.
How is transfer duty calculated?
Transfer duty is calculated on a sliding scale based on the property's purchase price or market value (whichever is higher). The first R1,100,000 is exempt (0%). The portion between R1,100,001 and R1,512,500 is taxed at 3%. Higher portions attract rates of 6%, 8%, 11%, and up to 13% for amounts exceeding R12,100,000. The calculation is cumulative — you only pay the higher rate on the portion above each threshold, not on the entire value.
Are there any transfer duty exemptions?
Yes. Properties valued at R1,100,000 or less are exempt from transfer duty. Properties bought from a registered VAT vendor (such as a property developer selling new units) are also exempt, as the purchase price includes VAT instead. Other exemptions include transfers between spouses married in community of property, transfers as part of a divorce order, and certain transfers to or from government entities.
When do I pay transfer duty?
Transfer duty must be paid within 6 months of the date the property is acquired (typically the date the offer to purchase is accepted). In practice, your conveyancing attorney will request the transfer duty amount from you early in the transfer process and will submit payment to SARS on your behalf. SARS must issue a transfer duty receipt before the Deeds Office will process the transfer. If payment is late, SARS may charge interest and penalties on the outstanding amount.
Disclaimer: The fees and rates shown are estimates based on the 2025/2026 transfer duty tables and Law Society guideline tariffs. Actual conveyancing fees may vary between attorneys. Bond initiation fees and other bank charges may differ between lenders. Always obtain a detailed quotation from your conveyancing attorney. Last updated: 12 March 2026.
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