Estate Duty Calculator
South Africa
Statutory estate duty calculation grounded in the Estate Duty Act 45 of 1955. Applies the R3,500,000 abatement (s4A(1)), Section 4 deductions including the spousal rollover (s4(q)), and the 20%/25% two-tier rate structure. Figures as at Budget 2026/27.
Basic abatement
R3,500,000
s4A(1)
Rate — tier 1
20%
≤ R30M dutiable
Rate — tier 2
25%
> R30M dutiable
Return deadline
12 months
s7 REV267
What is estate duty in South Africa?
Estate duty defined
Estate duty is a tax levied on the dutiable amount of a deceased person’s estate under the Estate Duty Act 45 of 1955. It is not an inheritance tax — it is charged against the estate itself, not against the beneficiaries who receive assets. The executor of the estate is responsible for calculating, declaring, and paying estate duty to SARS within 12 months of the date of death by filing the REV267 return.
The dutiable amount is calculated by starting with the gross value of all estate assets, subtracting the allowable Section 4 deductions (debts, funeral costs, executor fees, spousal bequests, and charitable bequests), and then subtracting the R3,500,000 basic abatement under Section 4A(1). Estate duty is then levied at 20% on the first R30 million of the dutiable amount, and at 25% on any dutiable amount exceeding R30 million. Most South African deceased estates pay zero estate duty because the Section 4 deductions and the R3.5 million abatement collectively eliminate the dutiable amount entirely.
The spousal rolloverunder Section 4(q) is the most powerful planning tool available: assets passing outright to the surviving spouse are deducted from the gross estate in full, before the abatement is applied. Combined with the portable abatement under Section 4A(2)–(4) — which allows the surviving spouse to inherit the deceased’s unused abatement — a well-structured estate plan can defer all estate duty to the surviving spouse’s estate.
Statutory calculator
Calculate estate duty
Total value of all assets in the estate at date of death — before any deductions. Include immovable property, investments, vehicles, and deemed assets (e.g. life policies payable to the estate).
Value of assets bequeathed outright to the surviving spouse. Deducted from the gross estate under s4(q) of the Estate Duty Act before the abatement is applied. Leave blank if no surviving spouse or if assets pass to other heirs.
Debts of the deceased at date of death — home loan balance, credit cards, personal loans, income tax owing. Deducted under s4(a). Do not include executor fees or funeral costs here.
Estate Duty Act 45 of 1955 · Budget 2026/27 · s4A(1)
Awaiting calculation
Enter the gross estate value and click Calculate. Quick Mode gives an immediate estimate — switch to Detailed for the full statutory breakdown.
Calculation methodology
How estate duty is calculated — step by step
Determine the gross estate value
Estate Duty Act — general principles
The starting point is the total value of all property included in the deceased estate at the date of death. This includes immovable property (valued at market value), listed investments, bank deposits, motor vehicles, jewellery, artwork, and business interests. Critically, certain deemed assets must also be included: life insurance policies payable to the estate, and retirement fund death benefits not paid directly to a dependant or nominated beneficiary. The gross estate does not yet account for any debts, deductions, or the abatement.
Apply the Section 4 deductions
Estate Duty Act 45/1955 — s4(a), s4(b), s4(c), s4(h), s4(q)
Section 4 sets out the deductions available against the gross estate. The most significant are: debts of the deceased at date of death under s4(a) — this includes the outstanding home loan balance, credit cards, income tax owing, and any personal loans; reasonable funeral and burial costs under s4(b); executor remuneration and administration costs under s4(c); bequests to the surviving spouse under s4(q) — the full value of assets passing to the spouse is deducted; and bequests to approved Public Benefit Organisations or the State under s4(h). After applying all Section 4 deductions, the result is the net value of the estate.
Apply the Section 4A(1) basic abatement
Estate Duty Act 45/1955 — s4A(1), effective 1 January 2010
The R3,500,000 basic abatement is deducted from the net value of the estate after all Section 4 deductions. This abatement has been R3.5 million since 1 January 2010 and has not been adjusted for inflation in the intervening sixteen years. If the net estate value after Section 4 deductions is less than or equal to R3,500,000, the dutiable amount is zero and no estate duty is payable. This is the case for the majority of South African deceased estates.
Calculate estate duty at the applicable rate
Estate Duty Act 45/1955 — First Schedule para 1(a)(i) and (ii)
Estate duty is levied on the dutiable amount at 20% on the first R30,000,000, and at 25% on any portion exceeding R30,000,000. The 25% tier was introduced on 1 March 2018. In practice, fewer than 1% of South African deceased estates reach the 25% tier. The estate duty rate is a flat rate on each tier — there is no progressive blending between tiers as in the income tax tables.
File the REV267 return and pay within 12 months
Estate Duty Act 45/1955 — s7, s10(1)
The executor must file the estate duty return (REV267) with SARS within 12 months of the date of death. If estate duty is payable, interest accrues at 6% per annum on any unpaid balance after 12 months. The REV267 is submitted to the SARS office in the magisterial district of the deceased's last known residence. SARS will review the return and may issue an assessment. Disputes follow the standard SARS objection and appeal process.
Worked example
Estate of R5,500,000 — spousal bequest of R3,000,000
This example shows the most common scenario in South African estate practice: an estate where a substantial spousal bequest eliminates the estate duty liability entirely. The figures below are real — not approximations.
Note: The unused abatement of R1,867,500 (R3,500,000 minus R1,632,500) is portable to the surviving spouse’s estate under s4A(2)–(4). Enable this in Detailed Mode.
Practitioner notes
Common mistakes in estate duty calculations
Mistake 1: Applying the abatement before the Section 4 deductions
The correct statutory sequence is: gross estate value → subtract all Section 4 deductions → subtract the R3,500,000 abatement → apply rate to dutiable amount. Applying the abatement to the gross estate before subtracting Section 4 deductions will produce a higher (incorrect) dutiable amount. This is the single most common error in practitioner-prepared estate duty calculations and can result in a material overstatement of duty payable.
Mistake 2: Confusing the spousal bequest deduction with a separate abatement
The Section 4(q) spousal bequest deduction operates on the gross estate, not on the dutiable amount. It is a Section 4 deduction, not a form of abatement. This matters because the spousal deduction reduces the base to which the R3.5 million abatement is then applied — meaning the abatement can shelter assets that remain in the estate after the spousal bequest. Treating s4(q) as an abatement (applied after s4A(1)) will understate the deductions available and may overstate duty payable.
Mistake 3: Omitting deemed assets from the gross estate
Life insurance policies payable to the estate and retirement fund death benefits not paid to a dependant or nominated beneficiary must be included in the gross estate for estate duty purposes. Many executors omit these amounts — particularly where the policy is administered by a third party — resulting in an understated gross estate and potentially an incorrect REV267. Always obtain full policy and fund schedules from all relevant institutions before finalising the gross estate value.
Reference table
Estate duty rates — South Africa 2026/27
| Dutiable amount | Rate | Section reference |
|---|---|---|
| R0 – R3,500,000 | 0% (covered by abatement) | s4A(1) |
| R3,500,001 – R30,000,000 | 20% of dutiable amount | First Schedule 1(a)(i) |
| Above R30,000,000 | 25% on excess above R30M | First Schedule 1(a)(ii) |
| 25% tier effective | 1 March 2018 | Tax Administration Laws Amendment Act 16/2017 |
| Abatement last changed | 1 January 2010 (unchanged since) | s4A(1) — no Budget 2026/27 adjustment |
Frequently asked questions
Estate duty — common questions
What is the estate duty abatement in South Africa in 2026?
The basic abatement is R3,500,000 per deceased estate under Section 4A(1) of the Estate Duty Act 45 of 1955. This amount has been unchanged since 1 January 2010. The abatement is deducted from the net estate value after all Section 4 deductions have been applied. If the net estate value is below R3.5 million, the dutiable amount is zero and no estate duty is payable. The abatement has not been adjusted for inflation in sixteen years — a well-recognised concern in the estate planning profession.
Does the surviving spouse pay estate duty in South Africa?
No — not in the first-dying spouse's estate. Assets passing outright to the surviving spouse are deducted from the gross estate under Section 4(q) before estate duty is calculated. In a well-structured will, the full estate can pass to the surviving spouse duty-free. The surviving spouse also inherits any unused portion of the deceased's R3,500,000 abatement (the portable abatement under Section 4A(2)–(4)), creating a combined R7,000,000 abatement in the surviving spouse's estate.
What is the estate duty rate in South Africa in 2026?
Estate duty is levied at 20% on the dutiable amount up to R30,000,000, and at 25% on any portion of the dutiable amount exceeding R30,000,000. Both rates have been unchanged since 1 March 2018. The rate applies only to the dutiable amount — that is, after all Section 4 deductions and the R3,500,000 Section 4A(1) abatement have been subtracted. In practice, most South African estates pay zero estate duty because the deductions and abatement eliminate the dutiable amount.
How is the estate duty return (REV267) filed?
The executor must submit the REV267 to SARS within 12 months of the date of death, in terms of Section 7 of the Estate Duty Act. The return is submitted at the SARS branch serving the magisterial district of the deceased's last known residence. If estate duty is payable and is not settled within 12 months, interest accrues at 6% per annum under Section 10(1). SARS may audit the return and raise an additional assessment. Disputes are resolved through the standard SARS objection and appeal process.
What happens if the estate cannot pay the estate duty?
The Estate Duty Act makes the executor personally liable for ensuring estate duty is paid before distributing the estate to heirs. If liquid assets in the estate are insufficient, the executor may need to liquidate investments or property to raise funds. SARS can grant extensions of time to pay, and interest at 6% per annum accrues on the outstanding balance. If the estate has insufficient assets to pay all creditors — including SARS — the estate is technically insolvent and an attorney or sequestration specialist should be engaged.
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Wandile Lokwe
FAIS Key Individual · CenturionAI (Pty) Ltd · 20 years South African financial services
This calculator encodes the estate duty rules exactly as they appear in the Estate Duty Act 45 of 1955 and SARS Budget 2026/27 guidance. Every statutory figure has a source reference. The calculation methodology follows SAICA Estate Duty Guide December 2025.
Statutory quick reference
Estate Duty Act 45 of 1955 · Budget 2026/27
Basic abatement
s4A(1)
R3,500,000
Spousal portable abatement max
s4A(2)–(4)
R7,000,000
Rate — tier 1
≤ R30M
20%
Rate — tier 2
> R30M
25%
Interest on late duty
s10(1)
6% p.a.
Return deadline
s7 — from date of death
12 months
Executor capital fee
s51(1) AEA 66/1965
3.5% max
Small estate threshold
s18(3) AEA 66/1965
R250,000
VAT on executor fee
If executor is VAT vendor
15%
L&D inspection period
s35 AEA · after publication
21 days
Section 4 deductions
HIGH DISCLAIMER
Estate duty calculations inform legal filings and executor liability. Results from this tool are indicative only and must be reviewed by a qualified estate practitioner or attorney before submission to SARS.
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