Transfer Duty in South Africa: What Every Buyer Needs to Know in 2026

Most buyers focus entirely on the purchase price and the monthly bond repayment. Then, a few weeks after making an offer, they discover that transfer duty, attorney fees and registration costs can add hundreds of thousands of rands to what they need upfront.

This article explains transfer duty clearly, shows you exactly what you will pay in 2026, and helps you budget properly before you make an offer on any property.

Key Takeaway

Transfer duty is one of the biggest hidden costs of buying property. Properties below R1,210,000 are currently exempt, which covers most Bloemfontein buyers. Always budget 8% to 10% of the purchase price for all once-off costs before you make an offer.

What Is Transfer Duty?

Transfer duty is a tax levied by SARS when ownership of a property transfers from one person to another. It is the buyer's responsibility and must be paid before the property can be registered in your name at the Deeds Office.

It is not a small amount. On a R1.5 million property, transfer duty alone is approximately R8,700. On a R2 million property, it rises to approximately R23,700. On a R3 million property, it exceeds R100,000.

The good news is that many Bloemfontein buyers, given the city's average property price of around R1.15 million, currently fall below the transfer duty threshold entirely.

Transfer Duty Rates for 2026

The current transfer duty table for 2026/27 is:

• R0 to R1,210,000: No transfer duty payable
• R1,210,001 to R1,677,000: 3% on the value above R1,210,000
• R1,677,001 to R2,244,000: R14,010 plus 6% on the value above R1,677,000
• R2,244,001 to R2,993,000: R48,030 plus 8% on the value above R2,244,000
• R2,993,001 to R3,990,000: R107,950 plus 11% on the value above R2,993,000
• Above R3,990,001: R217,620 plus 13% on the value above R3,990,000

For a practical example at Bloemfontein's average price: a R1.15 million property pays zero transfer duty. A R1.3 million property pays 3% on R90,000, which is R2,700. A R1.5 million property pays 3% on R290,000, which is R8,700.

Use our transfer duty calculator to get the exact figure for any purchase price.

When Is Transfer Duty NOT Payable?

There are two situations where transfer duty does not apply:

1. Buying from a VAT-registered developer If you buy a new property directly from a developer who is registered for VAT, you pay VAT at 15% instead of transfer duty. The critical point is that VAT is included in the advertised price, so what you see is what you pay. No additional transfer duty is added on top. This can make new developments surprisingly cost-effective from a total acquisition cost perspective.

2. Properties at or below R1,210,000 Any property priced at R1,210,000 or below is completely exempt from transfer duty. This threshold was adjusted in the 2026/27 budget and is one of the more meaningful reliefs for entry-level and first-time buyers.

The Full Picture: All the Once-Off Costs

Transfer duty is only one of several once-off costs. Here is the full list you need to budget for:

Transfer duty Payable to SARS. Calculated on the purchase price as above. Due before registration.

Transfer attorney fees The conveyancing attorney who transfers the property into your name charges a fee based on the purchase price. On a R1.15 million property, expect approximately R18,000 to R22,000 excluding VAT. This attorney is appointed by the seller but paid by you.

Bond registration fees The attorney appointed by the bank to register your home loan charges a separate fee based on the loan amount. On a R1.15 million bond, this is approximately R16,000 to R20,000 excluding VAT.

Bond initiation fee Charged by the bank when your loan is approved, currently approximately R6,000. This can usually be added to your loan amount rather than paid upfront.

Deeds Office fees Administrative fees charged by the Deeds Office for registering the transfer and the bond. These are relatively small but form part of the attorney's billing.

Total rule of thumb: Budget 8% to 10% of the purchase price to cover all once-off costs on top of any deposit. On a R1.15 million property that is R92,000 to R115,000.

Can These Costs Be Added to Your Bond?

Standard home loans do not include transfer costs. Most banks expect these to be paid from your own savings before registration can proceed.

Some banks offer a product that capitalises transfer and registration costs into the loan amount, sometimes called a bond plus costs facility. This means you pay no upfront costs but your loan is larger and you pay interest on those costs for the full bond term. On R80,000 of capitalised costs at prime less 0.25% over 20 years, you would pay approximately R100,000 in total including interest. Whether that trade-off makes sense depends on your cash position.

Talk to us about this before you decide. We can model both scenarios for your specific numbers.

Planning Your Budget Before You Make an Offer

The most important thing is to know your full cost picture before you sign an offer to purchase. Many buyers get pre-approved for a bond, make an offer, and then discover they do not have enough cash to cover transfer costs. This can cause deals to fall through at a late stage, which is stressful and costly for everyone involved.

Get pre-approved, then ask us to give you a full cost breakdown for any property you are seriously considering. We will show you the bond repayment, the transfer duty, the attorney fees and the total cash you need upfront. No surprises.

Get pre-approved now or WhatsApp Melinda for a full cost breakdown on a specific property.

You can also use our transfer duty calculator and bond repayment calculator to run your own numbers.

Frequently Asked Questions

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Transfer duty rates as per 2026/27 SARS table. Sources: South African Revenue Service | National Credit Regulator | South African Reserve Bank