Estate Duty Calculator South Africa (2026) — Calculate Inheritance Tax

Use this free estate duty calculator to estimate how much inheritance tax your estate will owe in South Africa. Enter your assets and deductions below to get a full breakdown based on the latest 2025/2026 SARS rates, including the R3.5 million abatement and spouse rollover provisions.

How Is Estate Duty Calculated in South Africa?

Estate duty in South Africa is governed by the Estate Duty Act (No. 45 of 1955). When a person dies, their estate is subject to estate duty based on the total value of all assets owned at the time of death. Here is the step-by-step calculation:

1. Determine the gross estate: Add up all assets including property, investments, vehicles, life insurance policies (deemed property), retirement fund lump sums, and business interests.
2. Subtract allowable deductions: Deduct outstanding debts, funeral costs, estate administration costs, bequests to a surviving spouse (Section 4(q) exemption), and bequests to approved public benefit organisations.
3. Calculate the net estate: Gross estate minus total deductions.
4. Apply the abatement: Every estate receives a R3.5 million abatement. If the deceased's predeceased spouse's abatement was rolled over, this increases to R7 million.
5. Calculate estate duty: The dutiable amount (net estate minus abatement) is taxed at 20% on the first R30 million and 25% on amounts above R30 million.

Estate Duty Rates (2026)

South Africa applies a progressive estate duty rate structure. The current rates, which have been in place since 1 March 2018, are:

What Is Included in Your Estate?

For estate duty purposes, your estate includes all property owned at the date of death, plus certain "deemed property" that is treated as part of the estate even though you may not directly own it. The main categories are:

• Immovable property: Your primary residence, holiday homes, investment properties, and any other land or buildings.
• Financial assets: Bank accounts, fixed deposits, unit trusts, shares, bonds, and other investments.
• Personal assets: Vehicles, furniture, jewellery, art, and other personal effects.
• Business interests: Shares in private companies, membership interests in close corporations, and partnership interests.
• Life insurance (deemed property): Proceeds from life insurance policies on the deceased's life are included under Section 3(3)(a), unless the policy is owned by an irrevocable trust.
• Retirement fund lump sums (deemed property): Lump sums payable from pension, provident, and retirement annuity funds on death. The first R500,000 is tax-free (subject to previous withdrawals).
• Donations made within 5 years: Under certain anti-avoidance rules, donations or dispositions made shortly before death may be clawed back into the estate.
• Trust assets (Section 3(3)(d)): Assets in a trust that the deceased could still control or benefit from may be deemed part of the estate.

Estate Duty Deductions and Exemptions

Not everything in the estate is subject to estate duty. Several important deductions and exemptions reduce the dutiable amount:

• Debts and liabilities: All genuine debts owed by the deceased at date of death, including home loans (bonds), vehicle finance, and credit card balances, are deductible.
• Funeral and deathbed expenses: Reasonable funeral costs and medical expenses incurred in the deceased's final illness are deductible.
• Estate administration costs: Executor's fees (typically 3.5% of gross estate plus VAT), Master's fees, valuation costs, and other administration expenses.
• Spousal bequest exemption (Section 4(q)): Any property left to the surviving spouse is fully exempt from estate duty, regardless of the amount. This is the most powerful estate planning tool available.
• Public benefit organisations (PBOs): Bequests to SARS-approved PBOs and registered charities are fully exempt from estate duty.
• Primary abatement: Every estate receives a R3.5 million deduction (the abatement), which may increase to R7 million with spouse rollover.

Spouse Rollover: The R7 Million Abatement

One of the most significant estate duty planning provisions is the spouse rollover of the primary abatement. Here is how it works:

When the first spouse dies and leaves their entire estate to the surviving spouse, no estate duty is payable (because of the Section 4(q) spousal exemption). However, the deceased spouse's R3.5 million abatement is "wasted" because it was not needed.

To prevent this, the Estate Duty Act allows the unused abatement from the first-dying spouse to roll over to the surviving spouse. When the surviving spouse subsequently dies, their estate benefits from a combined abatement of R7 million (their own R3.5 million plus the rolled-over R3.5 million from the predeceased spouse).

This provision was introduced in 2010 and has made a meaningful difference for married couples. For an estate of R10 million, the spouse rollover reduces estate duty from R1.3 million to R600,000 — a saving of R700,000.

How to Reduce Estate Duty

Estate duty can represent a significant cost, particularly for larger estates. Here are legitimate strategies to reduce the estate duty burden:

1. Bequeath assets to your spouse: The Section 4(q) exemption means all assets left to a surviving spouse are exempt. This defers estate duty to the second death, when the combined R7 million abatement applies.
2. Use an inter vivos trust: Transfer assets to a living trust during your lifetime. Assets owned by the trust do not form part of your estate. However, donations tax (20%) applies on transfers, and income tax implications must be carefully managed.
3. Take out life insurance in a trust: If a life insurance policy is owned by an irrevocable trust (not by you personally), the proceeds are paid to the trust and do not form part of your estate. This is one of the most effective estate planning tools.
4. Make donations during your lifetime: You can donate up to R100,000 per year without donations tax (the annual exemption). Amounts above this attract 20% donations tax (25% above R30 million), but this systematically reduces your estate over time.
5. Charitable bequests: Leaving a portion of your estate to an approved PBO is fully exempt from estate duty and may also provide income tax benefits.
6. Buy-and-sell agreements: For business owners, properly structured buy-and-sell agreements funded by life insurance can ensure business interests are sold at fair value without increasing estate duty.

Estate Duty vs Donations Tax vs Capital Gains Tax

When a person dies in South Africa, up to three different taxes may apply. Understanding how they interact is crucial for estate planning:

On death, SARS treats the deceased as having disposed of all their assets at market value (a "deemed disposal"). This triggers capital gains tax on any growth in asset values. Estate duty is then calculated on the total estate value. The capital gains tax liability is itself a deduction for estate duty purposes, providing some relief from the double taxation.

The primary residence exclusion for CGT on death is R2 million (compared to R2 million during your lifetime). Assets left to a spouse receive a rollover — the CGT is deferred until the surviving spouse dies or disposes of the assets.

Frequently Asked Questions