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What You Need to Know About Estate Duty in South Africa
Estate duty is one of the most overlooked costs in estate planning – and without planning for it, it can eat into what your family actually inherits.
What is estate duty?
Estate duty is a tax levied on the dutiable value of your estate after you pass away. It’s calculated and paid by the estate before assets are distributed to beneficiaries, and it’s separate from executor’s fees and other administration costs.
Current estate duty rates and thresholds
Every estate currently benefits from an abatement of R3.5 million, below which no estate duty is payable — and this amount is portable between spouses, effectively doubling the exemption for a married couple’s combined estate. Above the abatement, estate duty is generally charged at 20% up to R30 million in dutiable value, and 25% on the portion above that. These figures are current as a general guide only and should be confirmed with a professional, as thresholds can change.
What deductions reduce estate duty?
Debts owed by the estate – including amounts owed to SARS – are deductible before estate duty is calculated. There’s also a once-off capital gains tax exclusion of R300,000 in the year of death, and assets left to a surviving spouse generally roll over without triggering CGT or estate duty at that point. More info on this can be found in our FAQ here.
How to plan around estate duty
Life insurance, trust structures, and careful use of the spousal abatement can all reduce the estate duty burden on your family. Our deceased estates and estate planning service can connect you with a professional who can model your specific liability and suggest ways to plan around it.
Want to understand your estate’s tax exposure? get in touch for a free, no-obligation enquiry, or read our guide on what estate planning means to start from the basics.
Disclaimer: This content is for general information only and does not constitute legal or financial advice. Legal-Services.co.za is a referral platform, not a law firm — we connect users with independent, outsourced legal partners who can assess individual circumstances. This content has been AI-assisted and reviewed for general accuracy. Fees, rates and thresholds mentioned are indicative and subject to change; confirm current figures with a professional.
