diff --git a/src/gtest/test_checktransaction.cpp b/src/gtest/test_checktransaction.cpp
index a0efee14e..467c2cf3b 100644
--- a/src/gtest/test_checktransaction.cpp
+++ b/src/gtest/test_checktransaction.cpp
@@ -779,7 +779,9 @@ TEST(checktransaction_tests, OverwinteredContextualCreateTx) {
     SelectParams(CBaseChainParams::REGTEST);
     const Consensus::Params& consensusParams = Params().GetConsensus();
     int activationHeight = 5;
+    int saplingActivationHeight = 30;
     UpdateNetworkUpgradeParameters(Consensus::UPGRADE_OVERWINTER, activationHeight);
+    UpdateNetworkUpgradeParameters(Consensus::UPGRADE_SAPLING, saplingActivationHeight);
 
     {
         CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
@@ -799,10 +801,64 @@ TEST(checktransaction_tests, OverwinteredContextualCreateTx) {
         EXPECT_EQ(mtx.nVersion, 3);
         EXPECT_EQ(mtx.fOverwintered, true);
         EXPECT_EQ(mtx.nVersionGroupId, OVERWINTER_VERSION_GROUP_ID);
-        EXPECT_EQ(mtx.nExpiryHeight, 0);
+        EXPECT_EQ(mtx.nExpiryHeight, activationHeight + expiryDelta);
+    }
+
+    // Close to Sapling activation
+    {
+        CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
+            consensusParams, saplingActivationHeight - expiryDelta - 2);
+
+        EXPECT_EQ(mtx.fOverwintered, true);
+        EXPECT_EQ(mtx.nVersionGroupId, OVERWINTER_VERSION_GROUP_ID);
+        EXPECT_EQ(mtx.nVersion, OVERWINTER_TX_VERSION);
+        EXPECT_EQ(mtx.nExpiryHeight, saplingActivationHeight - 2);
+    }
+
+    {
+        CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
+            consensusParams, saplingActivationHeight - expiryDelta - 1);
+
+        EXPECT_EQ(mtx.fOverwintered, true);
+        EXPECT_EQ(mtx.nVersionGroupId, OVERWINTER_VERSION_GROUP_ID);
+        EXPECT_EQ(mtx.nVersion, OVERWINTER_TX_VERSION);
+        EXPECT_EQ(mtx.nExpiryHeight, saplingActivationHeight - 1);
+    }
+
+    {
+        CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
+            consensusParams, saplingActivationHeight - expiryDelta);
+
+        EXPECT_EQ(mtx.fOverwintered, true);
+        EXPECT_EQ(mtx.nVersionGroupId, OVERWINTER_VERSION_GROUP_ID);
+        EXPECT_EQ(mtx.nVersion, OVERWINTER_TX_VERSION);
+        EXPECT_EQ(mtx.nExpiryHeight, saplingActivationHeight - 1);
+    }
+
+    // Just before Sapling activation
+    {
+        CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
+            consensusParams, saplingActivationHeight - 1);
+
+        EXPECT_EQ(mtx.fOverwintered, true);
+        EXPECT_EQ(mtx.nVersionGroupId, OVERWINTER_VERSION_GROUP_ID);
+        EXPECT_EQ(mtx.nVersion, OVERWINTER_TX_VERSION);
+        EXPECT_EQ(mtx.nExpiryHeight, saplingActivationHeight - 1);
+    }
+
+    // Sapling activates
+    {
+        CMutableTransaction mtx = CreateNewContextualCMutableTransaction(
+            consensusParams, saplingActivationHeight);
+
+        EXPECT_EQ(mtx.fOverwintered, true);
+        EXPECT_EQ(mtx.nVersionGroupId, SAPLING_VERSION_GROUP_ID);
+        EXPECT_EQ(mtx.nVersion, SAPLING_TX_VERSION);
+        EXPECT_EQ(mtx.nExpiryHeight, saplingActivationHeight + expiryDelta);
     }
 
     // Revert to default
+    UpdateNetworkUpgradeParameters(Consensus::UPGRADE_SAPLING, Consensus::NetworkUpgrade::NO_ACTIVATION_HEIGHT);
     UpdateNetworkUpgradeParameters(Consensus::UPGRADE_OVERWINTER, Consensus::NetworkUpgrade::NO_ACTIVATION_HEIGHT);
 }
 
diff --git a/src/main.cpp b/src/main.cpp
index bca80c31a..e4c9e12f8 100644
--- a/src/main.cpp
+++ b/src/main.cpp
@@ -31,6 +31,7 @@
 #include "wallet/asyncrpcoperation_sendmany.h"
 #include "wallet/asyncrpcoperation_shieldcoinbase.h"
 
+#include <algorithm>
 #include <sstream>
 
 #include <boost/algorithm/string/replace.hpp>
@@ -6089,12 +6090,18 @@ CMutableTransaction CreateNewContextualCMutableTransaction(const Consensus::Para
     bool isOverwintered = NetworkUpgradeActive(nHeight, consensusParams, Consensus::UPGRADE_OVERWINTER);
     if (isOverwintered) {
         mtx.fOverwintered = true;
-        mtx.nVersionGroupId = OVERWINTER_VERSION_GROUP_ID;
-        mtx.nVersion = OVERWINTER_TX_VERSION;
-        // Expiry height is not set. Only fields required for a parser to treat as a valid Overwinter V3 tx.
+        mtx.nExpiryHeight = nHeight + expiryDelta;
 
-        // TODO: In future, when moving from Overwinter to Sapling, it will be useful
-        // to set the expiry height to: min(activation_height - 1, default_expiry_height)
+        if (NetworkUpgradeActive(nHeight, consensusParams, Consensus::UPGRADE_SAPLING)) {
+            mtx.nVersionGroupId = SAPLING_VERSION_GROUP_ID;
+            mtx.nVersion = SAPLING_TX_VERSION;
+        } else {
+            mtx.nVersionGroupId = OVERWINTER_VERSION_GROUP_ID;
+            mtx.nVersion = OVERWINTER_TX_VERSION;
+            mtx.nExpiryHeight = std::min(
+                mtx.nExpiryHeight,
+                static_cast<uint32_t>(consensusParams.vUpgrades[Consensus::UPGRADE_SAPLING].nActivationHeight - 1));
+        }
     }
     return mtx;
 }
diff --git a/src/rpcrawtransaction.cpp b/src/rpcrawtransaction.cpp
index 3f6981619..e59a9b369 100644
--- a/src/rpcrawtransaction.cpp
+++ b/src/rpcrawtransaction.cpp
@@ -455,7 +455,6 @@ UniValue createrawtransaction(const UniValue& params, bool fHelp)
         Params().GetConsensus(), nextBlockHeight);
     
     if (NetworkUpgradeActive(nextBlockHeight, Params().GetConsensus(), Consensus::UPGRADE_OVERWINTER)) {
-        rawTx.nExpiryHeight = nextBlockHeight + expiryDelta;
         if (rawTx.nExpiryHeight >= TX_EXPIRY_HEIGHT_THRESHOLD){
             throw JSONRPCError(RPC_INVALID_PARAMETER, "nExpiryHeight must be less than TX_EXPIRY_HEIGHT_THRESHOLD.");
         }
diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 9023b80f6..5de71c2c6 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -3701,9 +3701,6 @@ UniValue z_sendmany(const UniValue& params, bool fHelp)
     if (contextualTx.nVersion == 1 && isShielded) {
         contextualTx.nVersion = 2; // Tx format should support vjoinsplits 
     }
-    if (NetworkUpgradeActive(nextBlockHeight, Params().GetConsensus(), Consensus::UPGRADE_OVERWINTER)) {
-        contextualTx.nExpiryHeight = nextBlockHeight + expiryDelta;
-    }
 
     // Create operation and add to global queue
     std::shared_ptr<AsyncRPCQueue> q = getAsyncRPCQueue();
@@ -3902,9 +3899,6 @@ UniValue z_shieldcoinbase(const UniValue& params, bool fHelp)
     if (contextualTx.nVersion == 1) {
         contextualTx.nVersion = 2; // Tx format should support vjoinsplits 
     }
-    if (overwinterActive) {
-        contextualTx.nExpiryHeight = nextBlockHeight + expiryDelta;
-    }
 
     // Create operation and add to global queue
     std::shared_ptr<AsyncRPCQueue> q = getAsyncRPCQueue();
@@ -4244,9 +4238,6 @@ UniValue z_mergetoaddress(const UniValue& params, bool fHelp)
     if (contextualTx.nVersion == 1 && isShielded) {
         contextualTx.nVersion = 2; // Tx format should support vjoinsplit
     }
-    if (overwinterActive) {
-        contextualTx.nExpiryHeight = nextBlockHeight + expiryDelta;
-    }
 
     // Create operation and add to global queue
     std::shared_ptr<AsyncRPCQueue> q = getAsyncRPCQueue();
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 5ab1103ff..96e85eb19 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -2580,13 +2580,10 @@ bool CWallet::CreateTransaction(const vector<CRecipient>& vecSend, CWalletTx& wt
         Params().GetConsensus(), nextBlockHeight);
 
     // Activates after Overwinter network upgrade
-    // Set nExpiryHeight to expiryDelta (default 20) blocks past current block height
     if (NetworkUpgradeActive(nextBlockHeight, Params().GetConsensus(), Consensus::UPGRADE_OVERWINTER)) {
-        if (nextBlockHeight + expiryDelta >= TX_EXPIRY_HEIGHT_THRESHOLD){
+        if (txNew.nExpiryHeight >= TX_EXPIRY_HEIGHT_THRESHOLD){
             strFailReason = _("nExpiryHeight must be less than TX_EXPIRY_HEIGHT_THRESHOLD.");
             return false;
-        } else {
-            txNew.nExpiryHeight = nextBlockHeight + expiryDelta;
         }
     }