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Inheritance tax in South Africa 2026
Estate duty runs at 20%, rising to 25% on the portion of the dutiable estate above ZAR 30 million.
The first ZAR 3.5 million of net estate value is deducted before any duty is calculated.
Everything left to a surviving spouse is deductible, so spouse-to-spouse estates typically pay nothing.
Lifetime gifts face donations tax at the same 20%/25%, softened by a ZAR 150,000 yearly exemption per person.
At a glance
- top rate
- 25% above ZAR 30 million dutiable value
- entry band
- 20% after the ZAR 3.5 million deduction
- tax year basis
- 2026/27 year of assessment, 1 March 2026 to 28 February 2027
- filing deadline
- Handled by the estate's executor after death; gifts declared by the donor
- residency basis
- Worldwide estate if ordinarily resident at death; local assets only otherwise
- regime flag
- Unlimited spouse deduction
Rates
Estate duty 2026/27
| Dutiable estate (ZAR) | Rate |
|---|---|
| 0 – 30,000,000 | 20% |
| Over 30,000,000 | 25% on the excess |
Marginal rates apply within each band.
Donations tax 2026/27
| Cumulative gifts (ZAR) | Rate |
|---|---|
| 0 – 30,000,000 | 20% |
| Over 30,000,000 | 25% |
Marginal rates apply within each band.
Thresholds & allowances
- Standard estate deductionZAR 3,500,000
Comes off the net estate value before duty; unused portions can effectively pass via spouse planning.
- Spouse bequestsFully deductible
Property left to a surviving spouse reduces the dutiable estate rand for rand.
- Yearly gift exemptionZAR 150,000
Per individual donor per tax year, up from ZAR 100,000 before 1 March 2026.
- Quick-succession reliefWithin 10 years
A rebate applies to property already taxed in the estate of someone who died less than 10 years earlier.
Residency
Residency trigger
If the deceased was ordinarily resident at death, the worldwide estate is in scope. Deemed property such as local life-policy proceeds is added in.
Non-resident treatment
For someone not ordinarily resident, only locally situated assets are dutiable, with carve-outs for foreign-registered rights and foreign-only enforceable debts.
Notes
- Deductions include funeral and administration costs, debts, capital gains tax owed by the estate, and assets the deceased held before first becoming resident.
- Estate duty treaties exist with Botswana, Lesotho, Eswatini, the UK, the US and Zimbabwe; the UK agreement also covers donations tax.
- Heirs pay no securities transfer tax on inherited shares, and property inherited from an estate is exempt from transfer duty.
- Interest-free or cheap loans to a trust are treated as an ongoing yearly donation, a long-standing anti-avoidance rule dating from 1 March 2017.
- Death also triggers capital gains tax as a deemed disposal, with a ZAR 440,000 gains exclusion in the year of death — a separate charge from estate duty.
FAQ
My estate is worth ZAR 10 million — what duty would apply?
Roughly ZAR 1.3 million: 10 million minus the 3.5 million deduction leaves 6.5 million, taxed at 20%. Anything left to your spouse would cut the bill further.
Can I gift money to my children tax-free?
Up to ZAR 150,000 per year in total escapes donations tax. Above that, you as the donor pay 20%, rising to 25% once lifetime gifts pass ZAR 30 million.
Figures: tax year 2026/27 (March–February), compiled from public sources. Not tax advice.