At the time when South Africa transitioned from Apartheid to democracy, various tax instruments tied to land and property were levied in terms of legislative provisions set by the national government and respective local councils. At the national level, the new democratic dispensation inherited pre-1994 tax legislation that makes provision for levying once-off taxes whenever immovable property is acquired. These are the Transfer Duty Act 40 of 1949 and the Value-added Tax Act 89 of 1991, but one can also refer to the Estate Duty Act 45 of 1955 and the part of the Income Tax Act 58 of 1962 dealing with donations tax. The value-added tax (VAT) rate is currently set at 15% and according to section 9(15) of the Transfer Duty Act transfer duty is not payable whenever the transaction is subject to VAT. The transfer duty rates vary depending on the value of the property. For instance, properties acquired on or after 1 March 2020, there is no transfer duty on the property under Rand 1 million (Mboweni 2020). The transfer duty is only payable on properties valued at R1 000 0001.00 or above and Table 4 on transfer duty tax rates below shows the progressive tax rates.
Transfer Duty Tax Rates from 1 March 2020
| Property values category | Applicable transfer duty rate |
| R1 – R1 000 000.00 | No transfer duty payable |
| R1 000 001.00 to 1 375 000 | 3% of the value above R900 001 |
| R 1 375 001 to R 1 925 000 | 6% on the value above R 1 250 000.00 plus a flat rate of R 10 500 |
| R 1 925 001 to R 2 475 000 | 8% on the value above R 1 750 000, plus a flat rate of R 40 500 |
| R 2 475 001 to R11 000 000 | 11% of the value above R 2 250 000 plus R 80 500 |
| R 11 000 001 and above | 13% of the value exceeding R10 000 000 Plus R933 000. |