Property · 7 min read
Understanding SARS Transfer Duty: 2024/2025 Brackets Explained
A plain-English breakdown of how transfer duty works in South Africa, when VAT applies instead, and how much you'll actually pay at each price point.
By The QuickCalc Editorial Team · Updated 2025
What is transfer duty?
Transfer duty is a tax paid by the buyer to SARS whenever ownership of a fixed property (land or buildings) is transferred, unless the sale is subject to VAT instead. It is separate from the property price, from the attorney's conveyancing fees and from bond registration costs, and it must be paid before the transfer can be lodged at the Deeds Office. In practice, your conveyancing attorney collects the money from you and pays it over to SARS on your behalf.
The tax is progressive: the rate you pay rises with the property price, but only the portion of the price inside each bracket is taxed at that bracket's rate. A common misconception is that a R2 million property is taxed at 6% on the full price. It isn't — the first R1.1 million is exempt, the next R412,500 is taxed at 3%, and only the top slice above R1,512,500 is taxed at 6%.
The 2024/2025 brackets
The current SARS transfer duty brackets are: 0% up to R1,100,000; 3% on R1,100,001 – R1,512,500; 6% on R1,512,501 – R2,117,500; 8% on R2,117,501 – R2,722,500; 11% on R2,722,501 – R12,100,000; and 13% on the portion above R12,100,000. These figures apply to acquisitions on or after 1 April 2024 and are typically revised in the annual Budget Speech.
Our Transfer Duty Calculator walks the price through every bracket automatically, so you get the exact rand figure in seconds. You can use it to test the effect of negotiating below a bracket threshold — for example, dropping a R1.15 million offer to R1.1 million saves R1,500 in transfer duty on top of the R50,000 off the price itself.
When VAT applies instead
If the seller is a VAT-registered vendor selling in the course of their enterprise — for example, a residential property developer selling a new unit off-plan — then VAT at 15% applies to the sale and transfer duty does not. VAT is typically included in the advertised price by developers, so always check whether a new-build price is 'VAT inclusive' before comparing it to a resale.
The two taxes are mutually exclusive. If you're buying a resale home from a private individual, transfer duty applies. If you're buying a new unit from a developer, VAT applies. There is no scenario where you pay both on the same sale.
Other upfront costs to budget for
Beyond transfer duty and the deposit, you need to budget for the transferring attorney's fee (roughly R30,000-R50,000 on a R1.5 million purchase), the bond registration attorney's fee (similar order of magnitude if you're taking a bond), Deeds Office lodgement fees, FICA and postage disbursements. Attorneys are required to quote you upfront using the recommended guidelines set by the Legal Practice Council — ask for a written pro forma before you sign.