Good news for first time buyers
Category Branch Page Article
Following the 2023 Budget Speech which was held on 22 February 2023, the following key points were noted:
No increase in personal income tax.
The personal income tax thresholds increase from R91 250 to R95 750. In other words, if you earn up to R97 750, you don't pay income tax. This means that persons earning a monthly salary of less than R8 145.83 are not required to pay income tax.
Ahead of the budget, property group Seeff called for the house price threshold for exemption from transfer duty to be increased as it had been at R1 million for more than two years.
Transfer duty will now only apply to properties sold for R1 100 000 or more. That is a 10% increase which is good news for buyers. This will make it easier for first time buyers to invest in property.
From 1 March 2023, there will be no transfer duties for properties between the value of R1 million and R1.1 million. Instead, properties sold for between R1,100,001 and R1,512,500 will have to pay 3% of the value above R1.1 million.
Transfer Duty on Transactions concluded as of 1 March 2023
R1 - R1 100 000 [0%]
R1 100 001 - R1 512 500 [3% of the value above R1 100 000]
R1 512 501 - R2 117 500 [R12 375 + 6% of the value above R1 512 500]
R2 117 501 - R2 772 500 [R48 675 + 8% of the value above R2 117 500]
R2 722 501 - R12 100 000 [R97 075 + 11% of the value above R2 722 500]
Note the above excludes all attorney fees.
As usual we saw an increase in "sins tax" on alcohol and tobacco - this has gone up by 4.9%. This means that the duty on:
A 340ml can of beer increases by 10 cents.
A 750ml bottle of wine goes up by 18 cents.
A 750ml bottle of spirits will increase by R3.90
The duty rises with 98 cents on a pack of 20 cigarettes.
Following the 2023 Budget Speech which was held on 22 February 2023, the following key points were noted:
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