New Transfer Duty Scales in 2020
Transfer duty is a type of tax imposed by the Transfer Duty Act. It’s payable to SARS when someone else takes over the property. Transfer duty is paid by the buyer of the property. It’s payable within six months after the purchase date, and if it isn’t paid by then, interest will be added onto the amount.
The 2020 Budget Speech saw the introduction of a new top-level of transfer duty for properties, where transfer duty will no longer apply to properties that cost R1 million or less. This is great news for lower- and middle-income buyers. The previous threshold used to be R900 000.
“To support the property market, the threshold for transfer duties is adjusted. Property costing R1 million or less will no longer be subject to transfer duty.” – Tito Mboweni, Minister of Finance
| Value of the property (R) | Rate |
| 1 – 1000 000 | 0% |
| 1 000 001 – 1 375 000 | 3% of the value above R1 000 000 |
| 1 375 001 – 1 925 000 | R11 250 + 6% of the value above R 1 375 000 |
| 1 925 001 – 2 475 000 | R44 250 + 8% of the value above R 1 925 000 |
| 2 475 001 – 11 000 000 | R88 250 +11% of the value above R2 475 000 |
| 11 000 001 and above | R1 026 000 + 13% of the value exceeding R11 000 000 |
Engelbrecht Attorneys Conveyancing Services can answer any questions or concerns that you might have about the 2020 transfer duty scales. For conveyance related advice and support, contact us.
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