Transfer duty, the money payable to SARS on the purchase price of the property gets determined by the Minister of Finance in the annual National Budget. It is the single biggest cost involved when purchasing a property, which is payable by the buyer.

 In the 2023 Budget announcement, the Minister increased the transfer duty threshold by 10% allowing properties below R1.1 million to avoid any transfer duty payments. This will make it easier for first-time buyers.

 It is interesting to note that according to Ooba, the average price paid by first-time homeowners stands at R1.13 million as of January 2023.

Herewith the schedule for transfer duty payable

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