Transfer Duty in 2026/27: What Every Property Buyer Should Know

Buying a home comes with a list of costs, and one of the most misunderstood is transfer duty. It is a tax, it is usually the buyer’s responsibility, and it must be paid before a property can be registered in your name. Getting the numbers wrong can delay a transfer or cost you interest. Here is what every buyer should know this year.

What is transfer duty?

Transfer duty is a tax levied by the South African Revenue Service (SARS) on the acquisition of immovable property. It is calculated on the higher of the purchase price or the market value of the property, and it applies to most resale homes. Properties sold by developers and builders are usually subject to VAT instead, so no transfer duty is payable on those. A transaction attracts one or the other, never both.

The current rates (2026/27)

SARS charges transfer duty on a sliding scale. The threshold has been raised in recent budgets, and the zero-rated band has never been more generous. For the current tax year the rates are:

• Up to R1 210 000: 0% (no transfer duty)
• R1 210 001 – R1 663 800: 3% of the value above R1 210 000
• R1 663 801 – R2 329 300: R13 614 plus 6% of the value above R1 663 800
• R2 329 301 – R2 994 800: R53 544 plus 8% of the value above R2 329 300
• R2 994 801 – R13 310 000: R106 784 plus 11% of the value above R2 994 800
• Above R13 310 000: R1 241 456 plus 13% of the value above R13 310 000

The practical significance is real: a first home bought at R1.21 million or less attracts no transfer duty at all, which is a meaningful saving for first-time buyers. The old first-time buyer rebate was replaced by this widened exemption band, so there is no separate rebate to claim.

Who pays, and when?

Unless the sale agreement says otherwise, the buyer pays the duty. It must be settled on or before the date of transfer into your name, and in practice the transfer cannot be registered until SARS has issued its receipt confirming payment. If the funds are not available in time, registration waits for them.

How the conveyancer handles it

Your transferring attorney manages the whole process: calculating the duty, submitting the SARS return (on the TRD1 or TRD2 form), arranging payment from the bond or your own funds, and obtaining the SARS receipt before the transfer is lodged at the Deeds Office. The rates change from year to year, so a figure you saw on a website six months ago may no longer be correct.

Common traps we see

• Forgetting that duty is calculated on the higher of price or value. A below-market purchase price does not automatically mean less duty.
• Assuming the seller will pay. Check your offer to purchase before you sign.
• Paying late. SARS charges interest on unpaid transfer duty, and no clearance receipt means no registration.
• Confusing VAT and transfer duty. Whether VAT or duty applies is decided by the nature of the transaction, not by choice.

Why it pays to speak to a conveyancer early

Transfer duty is only one line in the transfer budget. The bond, the municipality’s rates clearance, FICA and the Deeds Office lodgement all have to line up, and a specialist conveyancer keeps every step moving. We can give you the full picture of the costs before you sign, so there are no surprises at registration.

Considering a property purchase? Speak to us before you sign the offer to purchase, and let us keep your transfer on track.

How We Can Help

We help buyers and sellers with every step of a property transfer: FICA verification, offers to purchase, bond instructions, guarantees, transfer duty, and lodgement at the Deeds Office. Speak to us before you sign, so nothing holds your transfer up.