General information, not legal or tax advice. Every estate is different: confirm with the Master's Office, SARS, an attorney or a fiduciary practitioner before you act.
Estate duty and taxes on death
Death brings up to four separate tax questions. The executor deals with each one before the heirs are paid, and the Master will not accept the final account until SARS is satisfied.
3 points we are still verifying
s4A(3) (more than one surviving spouse of a previously deceased person) is not modelled; ask a practitioner.
Confirm promulgation of the 2026 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (B34-2026) that enacts the new CGT exclusions. SARS already applies them from 1 March 2026.
Deaths before 1 March 2026 (R300 000 exclusion, 2025/26 tax tables) are not calculated.
General tax information, not tax advice. Ask a registered tax practitioner about trusts, offshore assets, farms, businesses and large estates.
1. The deceased's final income tax return
Covers 1 March to the date of death. The tax rebates are reduced in proportion to the shorter period. Any capital gains from the deemed disposal on death are included here.
2. Capital gains tax on death
The deceased is treated as having sold their assets at market value on the date of death. For deaths from 1 March 2026 the exclusion in the year of death is R440 000 (it was R300 000 before), and up to R3 000 000 of the gain on the main home is excluded. 40% of the net gain is taxed at the deceased's marginal rate. Assets left to a resident spouse roll over without CGT. Estimate it here.
3. Estate duty
Charged on the net estate after the R3 500 000 abatement: 20% on the first R30 000 000 and 25% above. Everything left to a surviving spouse is deductible, and any unused abatement passes to the surviving spouse. The executor submits the estate duty return (REV267). Duty is payable within 12 months of death or 30 days after assessment, whichever is later, with 6% interest on late payment. Estimate it here.
4. The estate's own income
Rent, interest and dividends that the estate earns after death belong to the estate (or the heirs, once they are entitled to it). SARS treats the deceased estate as a separate taxpayer for this income.
Order of events
The executor tells SARS about the death and files the outstanding returns.
The liquidation and distribution account shows the taxes as debts of the estate.
SARS assesses estate duty; the executor pays or secures it before the Master files the account (Estate Duty Act s17 and s18).
Frequently asked questions
Do the heirs pay tax on what they inherit?
South Africa has no inheritance tax paid by heirs. Estate duty and the deceased's taxes are paid by the estate before distribution. Heirs pay tax later on income from what they inherit, and CGT when they sell it.
Is estate duty payable on every estate?
No. Only on the dutiable amount after the R3 500 000 abatement. Most estates pay no estate duty, especially where assets go to a surviving spouse.
What is the estate late tax number?
SARS registers the deceased estate as a separate taxpayer for income earned after death. The executor files its returns until the estate is wound up.
General information, not legal or tax advice. KayaLegacy gives general information based on the Administration of Estates Act, the Estate Duty Act, the Income Tax Act, the Intestate Succession Act, the Wills Act and guidance from the Master of the High Court and SARS. It is not legal or tax advice and does not create a professional relationship. Every estate is different: results are estimates, and the Master, SARS or the courts may reach a different answer. For advice on a particular estate, speak to the Master's Office, an attorney, a fiduciary practitioner or a tax practitioner.