Estate duty is calculated under the Estate Duty Act 45 of 1955.

Broadly, the calculation starts with the deceased’s property and any property deemed to be property for estate duty purposes. For a person who was ordinarily resident in South Africa, estate duty can apply to worldwide property, subject to the Act’s deductions and exclusions. For a non-resident, the scope is generally limited to South African property contemplated by the Act.

Deemed property can include certain domestic life policy proceeds even where those proceeds are paid directly to another person. The estate duty calculation is therefore not identical to the list of assets physically administered by the executor.

Allowable deductions are then applied, which can include qualifying liabilities, administration and funeral expenses, property accruing to a surviving spouse under section 4(q), and qualifying amounts accruing to approved public benefit organisations. The section 4A abatement is then deducted from the net value. The ordinary abatement is currently R3.5 million.

As at September 2026, estate duty is levied at 20% on the first R30 million of dutiable value and 25% on the portion above R30 million. Where there is a predeceased spouse, the portable section 4A abatement can increase the amount available to the later estate, subject to the statutory formula and the amount used in the earlier estate. In the common case involving one spouse, the maximum can be R7 million, but circumstances involving multiple spouses require a more specific calculation.

Because rates, exemptions and the person’s residence status can materially change the result, the current SARS estate duty guidance should be used for an actual calculation.

See also: How to avoid estate duty in South Africa? | How much can you inherit without paying tax?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.