Buyers looking to purchase a home this year will be welcomed with the National Treasury's 10% upward adjustment of the transfer duty brackets, which are amended from 2020.
The positives of the measures announced in the budget are welcomed by lower-end buyers in the South African residential market. The transfer duty exemption threshold has been lifted from R1m to R1.1m. These changes move throughout each bracket of purchase prices, as depicted below:
R0 - R1 100 000 | 0% of property value |
R1 100 000 - R1 512 500 | 3% of property value above R1 100 000 |
R1 512 501 - R2 117 500 | R12 375 + 6% of property value above R1 512 500 |
R2 117 501 - R2 722 500 | R48 675 + 8% of property value above R2 117 500 |
R2 722 501 - R12 100 000 | R97 075 + 11% of property value above R2 722 500 |
R12 100 001 and above | R1 128 600 + 13% of property above R12 100 000 |
Transfer duty on property purchases will kick in at a higher rate from 1 March 2023 after National Treasury adjusted the property value brackets upwards by 10%. However, the tax rates themselves have not been changed. As a result, you will start paying transfer duty on a property valued at R1.1 million, instead of R1m. The Treasury said the adjustment has been made to compensate for inflation.
Comments