SARS Estate Duty Explained (2026)

Estate duty is a tax on the value of a deceased person's estate. Understanding estate duty, when it applies, exemptions, and how it's calculated helps with estate planning and ensures compliance. This comprehensive guide covers everything you need to know about estate duty in South Africa for 2026.

What Is Estate Duty?

Understanding Estate Duty

Definition:

• Tax on deceased person's estate
• Payable by estate
• Before distribution
• Inheritance tax

Purpose:

• Revenue for government
• Applied to estates
• Before beneficiaries receive
• Estate administration

Key Point:

• Tax on estate value
• Not on individual beneficiaries
• Paid from estate
• Before distribution

When Does Estate Duty Apply?

Applicable Estates

When It Applies:

• Deceased person's estate
• Above exemption threshold
• South African residents
• Worldwide assets

Exemptions:

• Estates below threshold
• Spouse bequests
• Some specific exemptions
• Check rules

Exemption Threshold

2026 Threshold:

• R3.5 million per estate
• Estates below exempt
• Above threshold taxable
• Check current threshold

Calculation:

• Total estate value
• Less exemptions
• Taxable estate
• Estate duty calculated

Estate Duty Rates

Rate Structure

2026 Rates:

• 0% on first R3.5 million
• 20% on amount above R3.5 million
• Progressive rate
• Maximum 20%

Example:

• Estate value: R5 million
• Less exemption: R3.5 million
• Taxable: R1.5 million
• Estate duty: R1.5 million × 20% = R300,000

Exemptions and Deductions

Spouse Exemption

What It Is:

• Bequests to spouse exempt
• Unlimited exemption
• Significant benefit
• Estate planning tool

Requirements:

• Must be legal spouse
• Bequest to spouse
• Meets criteria
• Check specific rules

Other Exemptions

Common Exemptions:

• Small business assets (subject to limits)
• Some specific assets
• Other provisions
• Check specific rules

How Estate Duty Is Calculated

Calculation Process

Steps:

1. Determine estate value
2. Apply exemptions
3. Calculate taxable estate
4. Apply estate duty rate
5. Determine duty payable

Valuation:

• Assets valued at death
• Market values used
• Professional valuations
• Accurate assessment

Estate Planning

Reducing Estate Duty

Strategies:

• Spouse bequests
• Lifetime gifts (subject to rules)
• Trust structures
• Other planning

Considerations:

• Legal and tax advice
• Long-term planning
• Family circumstances
• Professional guidance

Frequently Asked Questions

What is the estate duty rate?

20% on estates above the R3.5 million exemption threshold for 2026.

Are bequests to spouses exempt?

Yes, bequests to legal spouses are generally exempt from estate duty.

When is estate duty paid?

Estate duty is paid from the estate before assets are distributed to beneficiaries.

Can estate duty be avoided?

Some estate duty can be reduced through proper estate planning, but consult a professional advisor.

Who pays estate duty?

The estate pays estate duty before distribution to beneficiaries.

Conclusion

Understanding estate duty helps with estate planning and ensures compliance. By understanding exemptions, rates, and planning strategies, you can manage estate duty effectively. For estate planning or complex situations, consult a qualified estate planner or tax practitioner.

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Related Articles:

• SARS Tax Brackets and Tables (2026)
• Capital Gains Tax Explained (2026)

Official Resources:

• SARS Website
• SARS eFiling
• SARS Call Centre