What does transfer duty mean?

Transfer duty refers to the tax that you pay on a transfer of property.

This tax is paid to SARS and is dependent on the value of the property. Properties valued below R1 100 000 are exempt. 

Here are the rates in more detail:

Transfer duty (1 March 2023 – 29 February 2024)

Value of property	Rate
Under R1 100 000	0%
R1 100 001 – 1 512 500	3% of the value above R1 100 000
R1 512 501 – 2 117 500	R12 375 + 6% of the value above R 1 512 500
R2 117 501 – 2 722 500	R48 675 + 8% of the value above R 2 117 500
R2 722 501 – 12 100 000	R97 075 +11% of the value above R2 722 500
R12 100 001 and above	R1 128 600 + 13% of the value exceeding R12 100 00

You can also use our Transfer Cost Calculator to determine what you will pay on transfer duty (as well as your transfer and bond registration cost).

It’s important to know the additional costs you pay on a home purchase, and transfer duty is one of them, along with transfer costs and bond registration.

Note that transfer duty is paid to SARS but transfer costs are paid to the conveyancing attorney who transfers the property.

You should find out what home loan you will qualify for by getting prequalified. This will help you budget appropriately, as you’ll have an idea of the price range for your home purchase together with your transfer costs.

You can get prequalified by contacting an expert at ooba Home Loans or by using our free, online prequalification tool, the Bond Indicator.