South Africa — Property: Property Taxes

Key facts

• The transfer duty table starts at 0% on the first R1,210,000 and rises in bands to 13% on value above R13,310,000.
• Property subject to VAT is not liable for transfer duty.
• The conveyancer pays transfer duty through eFiling and must answer the Section 35A question for non-resident sellers.
• Check the table for the transaction date, as bands change with budgets.

Steps

1. Step 1: Determine the Property's Value — Property values in South Africa are determined by the South African Revenue Service (SARS) using the Market Value method. Homeowners can use the SARS property calculator to estimate their property's value.
2. Step 2: Calculate Property Taxes — To calculate property taxes, homeowners need to multiply the property's value by the applicable tax rate. However, the exact tax rate and calculation method can vary by municipality, making it essential to consult local authorities for specific information.
3. Step 3: Pay Property Taxes — Property taxes in South Africa are usually paid annually, with the first payment due in June for the upcoming financial year. Homeowners can pay their property taxes at their local municipal offices or through online banking services.