Basic section 4A abatement
R3.5 million
Deducted from the net value after allowable section 4 deductions. A transferred unused spouse amount can change the abatement.
Current SARS rates checked 3 August 2026
Estate Duty in South Africa
Estate duty is charged on the dutiable amount after property, deemed property, allowable section 4 deductions and the section 4A abatement have been worked through. It is not a flat tax on everything a family owns.
The current national framework
Estate-Duty Rates and Threshold
First band
20%
Applied to the first R30 million of the dutiable amount, not the gross asset value.
Upper band
25%
Applied only to the part of the dutiable amount above R30 million.
These rates were unchanged when checked for the 2026/27 period. An estate below R3.5 million can still have tax returns, capital-gains consequences, executor fees and liquidity needs. The R250,000 Master's appointment threshold is a different rule.
Indicative estate-duty calculator
Estimate the Dutiable Amount and Duty
Follow the statutory sequence
How Estate Duty Is Calculated
Property
Value property included at death under the Estate Duty Act.
Deemed property
Add relevant policy proceeds and other statutory deemed-property amounts.
Section 4 deductions
Subtract allowed liabilities, costs, spouse accruals and other qualifying deductions.
Section 4A
Subtract the R3.5 million abatement plus any properly calculated unused spouse amount.
Apply rates
Charge 20% through R30 million of dutiable amount and 25% only above it.
A deduction needs a statutory basis and evidence
Estate-Duty Deductions and the Spouse Deduction
Debts and administration
Qualifying debts, administration expenses and reasonable funeral or death-bed expenses may be deductible within section 4. Not every family or memorial expense qualifies.
Surviving spouse, section 4(q)
Property that accrues to the surviving spouse can qualify, subject to the wording, ownership, marital position and statutory limits. A discretionary hope of benefit is not necessarily enough.
Matrimonial accrual
A qualifying accrual claim under the Matrimonial Property Act can affect the estate calculation. It is separate from simply leaving an asset to a spouse.
Approved public-benefit bequests
Property bequeathed to qualifying exempt institutions, government or specified public bodies may be deductible. Verify the recipient's status and the exact bequest.
Foreign-property deductions
The scope differs for an ordinarily resident deceased person and a non-resident. Foreign duty agreements and section 4 deductions may prevent or relieve double taxation in qualifying cases.
Valuation and proof
A label in a spreadsheet does not create a deduction. Keep invoices, settlement figures, policy records, valuations, marriage records, estate accounts and supporting legal documents.
The second-dying spouse may receive more than R3.5 million
The Portable Spouse Abatement
SARS explains that a person with a predeceased spouse may use up to R7 million under section 4A, less the amount used in the predeceased spouse's estate. The second estate does not automatically receive R7 million simply because the deceased was married.
The executor needs the first estate's records and the correct sequence where there was more than one spouse. The unused amount is a section 4A calculation, while the surviving-spouse property deduction is section 4(q). Do not combine or double-count them in the calculator.
Simplified examples before CGT and other taxes
Estate-Duty Calculation Examples
Net estate of R3 million
Net value R3,000,000 less the basic R3,500,000 abatement produces no dutiable amount and no estate duty. Administration and tax compliance can still apply.
Net estate of R10 million
R10,000,000 less R3,500,000 gives R6,500,000 dutiable. At 20%, the simplified duty is R1,300,000.
Dutiable amount of R45 million
The first R30,000,000 produces R6,000,000 at 20%. The remaining R15,000,000 produces R3,750,000 at 25%. Total: R9,750,000.
Real calculations can differ because the gross estate, deemed property, valuation rules, marital regime, deductions, previous spouse abatements and duty allocable to specific benefits must be reviewed. These examples do not calculate CGT.
Common asset questions
Property, Foreign Assets and Life Insurance
Immovable property
A home, rental property, farm or land may form part of property at date of death at the value required by the Act. A transfer to an heir may be exempt from transfer duty, but that does not remove estate duty, CGT, rates, bond and conveyancing work.
Foreign assets
SARS states that worldwide property and deemed property are considered for a person ordinarily resident in South Africa, while South African property is considered for a non-resident. Treat residence, situs and treaty relief as specialist questions.
Life policies
A policy paid directly to a beneficiary can still be deemed property for estate duty. Premium history, ownership, beneficiary, buy-and-sell purpose and statutory exceptions affect the result and who bears a proportional duty amount.
Use the official term
Estate Duty Versus Inheritance Tax
South Africa imposes estate duty on the dutiable estate. There is no separate general tax charged merely because an heir receives a South African inheritance. That does not mean every tax consequence disappears.
The deceased person can have a final income-tax and CGT calculation. The deceased estate can earn taxable post-death income or realise later gains. An heir can later be taxed on income or gains arising after inheriting an asset. An overseas heir may also have exchange-control, foreign-law or foreign-tax requirements.
Estate duty, CGT, income tax and transfer duty are different calculations. Do not add a CGT estimate into the “deemed property” field or treat the section 4A abatement as a CGT exclusion.
Declaration, assessment and payment
REV267, Who Pays and When
Executor calculates and declares
The executor prepares the estate-duty calculation with the L&D account, completes REV267 and submits the return to the Master and SARS.
SARS assesses
SARS explains that estate duty is an assessment, not simply a final self-assessed amount. The executor can use the ordinary dispute route against an assessment.
Payment responsibility
The executor is generally liable in the representative capacity. A person receiving specific property or a directly paid policy may bear a proportional amount under the Act.
SARS states that duty is due within one year of death, or within 30 days of assessment where the assessment is issued within that first year. Late-payment interest can apply. Use the current assessment and SARS payment guidance rather than relying on an article's interest-rate figure.
Legal planning, not artificial subtraction
How to Reduce Estate Duty and Protect Liquidity
Verify ownership and the will
Align the will with the marital regime, asset ownership, beneficiary nominations, shareholder documents and intended spouse or charitable bequests.
Preserve spouse-estate records
Keep the first estate's section 4A calculation and assessment so the later executor can prove any unused amount.
Model policies correctly
Test whether proceeds are estate cash, outside-estate cash, deemed property, security for debt or part of business-succession funding. Insurance is not an automatic deduction.
Plan growth and disposals
A trust, company or donation can change future ownership, but can also create CGT, donations tax, section 7C, transfer costs and loss of control. Avoid last-minute asset moves.
Build a cash schedule
Set out tax, debts, executor fees, rates, levies, property costs, maintenance and cash legacies against cash that the executor can actually access.
Review after major changes
Marriage, divorce, death of a spouse, property purchase, business growth, emigration and policy changes can alter both duty and liquidity.
From estimate to evidence-based review
Estate Liquidity Review: Process, Documents and Quotes
Triage
Clarify whether this is planning before death, a reported estate or an urgent distribution and payment issue.
Evidence pack
Gather the will, marriage records, asset and debt schedule, policies, valuations, business records, first-spouse estate records and cash position.
Professional scope
A named attorney, SARS-registered tax practitioner, fiduciary specialist, accountant, valuer or adviser may be required depending on the work.
Written outputs
The quote should state assumptions, calculation scope, exclusions, professional names, fees, dependencies and expected delivery window after complete records.
Wills & Trust does not publish a fixed price or turnaround for a professional estate-duty review because a basic household estate and a cross-border business estate require different work. The initial intake is for routing and scope. Any paid professional work needs a separate written engagement and quote.
Quick answers
Estate Duty FAQs
What is the estate-duty threshold in South Africa?
The basic section 4A abatement is R3.5 million against the net estate after allowable deductions. It is not a simple gross-assets exemption, and a transferred unused spouse amount may change it.
Does a spouse pay estate duty on an inheritance?
Property accruing to a surviving spouse may qualify for the section 4(q) deduction, subject to the facts and wording. The executor still needs to calculate and declare the estate correctly.
Are life policies included?
Many policy proceeds can be deemed property even when paid outside the estate. Exceptions and proportional payment rules depend on ownership, premiums, beneficiaries and purpose.
Does an heir pay inheritance tax?
There is no separate general South African tax merely for receiving an inheritance. Estate duty and the estate's other taxes are dealt with before distribution, while later income or gains can be taxable to the heir.
Can a trust avoid estate duty?
Not automatically. Valid ownership, timing, retained rights, funding and administration matter. Moving an asset can create other tax and cost consequences.
Who submits REV267?
The executor completes the estate-duty return and submits it with the L&D account to the Master and SARS, then deals with the SARS assessment and payment process.
Do not send policy numbers, IDs or bank statements in this first step
Request an Estate Liquidity Review
Share only high-level context so a representative can identify the appropriate legal, tax or fiduciary route. Detailed records should go through the secure process named by the engaged professional.
Wills & Trust provides intake and consent-based referral support. We are not a law firm, tax practice, executor or financial-services provider. A calculator result does not create advice.
Scope and Limits
This is general information and an indicative calculation tool, not a REV267, SARS assessment, legal opinion, tax calculation, valuation, financial recommendation or insurance advice.
A complete result depends on the Estate Duty Act, current tax law, ownership, ordinary residence, deemed property, valuations, policies, marriage, will, deductions, spouse records, specific benefits and other taxes. No verified client outcome or testimonial is presented.
Editorial and Professional Record
- Author
- Muhammad Khan
Director and Information Officer, K2023120042 (South Africa) (Pty) Ltd t/a willandtrust.co.za. Business and editorial role only; no legal, tax, fiduciary, accounting, financial-planning or insurance credential is claimed. - Professional reviewers
- Not yet assigned
A South African deceased-estates attorney and SARS-registered tax practitioner must add their names, credentials, professional bodies, registrations and review dates. - Research date
- Official SARS and legislation sources checked 3 August 2026.
- Publication status
- Noindex professional-review draft. Not approved for publication.
Primary Sources Checked on 3 August 2026
- SARS: estate-duty rates, calculation, scope and payment
- SARS deceased-estates FAQ: deductions, abatements, REV267 and liability
- SARS REV267 estate-duty return
- SARS current other-tax rates and estate-duty deductions
- South African Government: Estate Duty Act 45 of 1955 and amendments
- SARS estate-duty agreements
- SARS capital-gains exclusions and rollovers
- Administration of Estates Act 66 of 1965
Estate duty is one part of a complete plan. Connect the calculation to your will, executor, liquidity, trusts, business and family arrangements in the South African estate planning hub.