Capital Gains Tax Calculator South Africa

Calculate CGT on property, shares and investments. Includes primary residence exclusion and 40% inclusion rate.

Last reviewed: 6 September 2026 · SARS 2026/2027 tax year
R50,000 Annual Exclusion40% Inclusion RatePrimary Residence2025/2026 & 2026/2027
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Capital Gains Tax (CGT) Calculator

For South African individual taxpayers

Tax Year:
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CGT Summary
Step-by-Step Calculation

Frequently Asked Questions — Capital Gains Tax South Africa

Individuals are not taxed directly on the capital gain. Instead, 40% of the net capital gain (after exclusions) is included in your taxable income and taxed at your marginal income tax rate. The effective maximum CGT rate for individuals is 40% × 45% = 18%.
Individual taxpayers receive a R50,000 annual exclusion on capital gains for the 2026/2027 tax year, raised from R40,000 by Budget 2026 — the first increase since 2017. This means the first R50,000 of net capital gains per tax year is not taxed. In the year of death, the exclusion increases to R300,000.
When you sell your primary residence, the first R2,000,000 of the capital gain is excluded from CGT. If the property was used partly for business or rental, the exclusion is apportioned accordingly. The property must have been used mainly as your primary residence.
Yes, gains from selling shares, unit trusts, and ETFs are subject to CGT for individual investors. Shares held in a TFSA are completely exempt. SARS may re-characterise frequent active share trading as revenue income taxable at your full marginal rate rather than CGT.
No — investments held inside a Tax-Free Savings Account (TFSA) are completely exempt from capital gains tax, income tax, and dividends tax. Similarly, growth inside a retirement annuity (RA), pension fund, or provident fund is also CGT-free while the money remains in the fund. CGT only applies to investments held in ordinary taxable accounts (e.g. a direct share portfolio or unit trusts outside a tax-free wrapper).
Only part of the gain is taxed. The process: (1) subtract the R50,000 annual exclusion from your net gain; (2) apply the 40% inclusion rate — only 40% of the remaining gain is added to your taxable income; (3) that included amount is then taxed at your marginal income tax rate. The maximum effective CGT rate for an individual is therefore 45% × 40% = 18% of the total gain.
Capital gains must be declared in your annual income tax return for the tax year in which the asset was disposed of (sold, donated, or deemed disposed). SARS receives third-party data from conveyancers (property sales) and brokers (share sales) — undeclared gains are increasingly detected. Provisional taxpayers may need to include estimated CGT in their second provisional tax payment (August/September). Keep all purchase records, improvement receipts and sales documentation.

Capital Gains Tax in South Africa: Complete Guide

Capital Gains Tax (CGT) in South Africa is not a separate tax — it is incorporated into your normal income tax. When you sell an asset for more than you paid, the gain is calculated, reduced by exclusions, and a portion (the inclusion rate) is added to your taxable income and taxed at your marginal rate. This makes the effective CGT rate significantly lower than your marginal income tax rate.

Step-by-Step CGT Calculation

  1. Calculate the capital gain: Proceeds (sale price) minus base cost (purchase price + acquisition costs + capital improvements)
  2. Subtract asset-specific exclusions: Primary residence (up to R2,000,000), small business disposal (up to R1,800,000 lifetime)
  3. Subtract the annual exclusion: R50,000 for individuals in 2026/2027, R40,000 in 2025/2026 (R300,000 in year of death)
  4. Apply the inclusion rate: 40% — only 40% of the net gain is added to taxable income
  5. Tax at your marginal rate: The included gain is taxed as part of your normal income

Maximum effective CGT rate for individuals: 45% × 40% = 18% of the gross gain.

Key CGT Exclusions and Rates

Exclusion / RateAmountConditions
Annual exclusion (individuals)R50,000/year (2026/2027)All individuals, every tax year — was R40,000 in 2025/2026
Death exclusionR300,000Year of death only
Primary residence exclusionUp to R2,000,000Must be main home; gain above R2m is taxable
Small business disposalUp to R1,800,000 (lifetime)Owner aged 55+; disposing of qualifying business assets
Individual inclusion rate40%Only 40% of net gain added to income
Maximum effective CGT rate18%45% marginal rate × 40% inclusion

CGT on Shares vs Property vs Unit Trusts

Shares (equities): Long-term investors in listed shares are subject to CGT on disposal. Active traders may be reclassified by SARS as "trading" — making gains fully taxable as income (not just 40% inclusion). Keep trade records and frequency data.

Property: CGT applies on all property other than your primary residence (up to R2m exclusion). Always keep improvement records — capital improvements increase your base cost and reduce the taxable gain. Bond registration fees and transfer costs at purchase also form part of your base cost.

Unit trusts: Subject to CGT on redemption. Many fund managers publish the embedded capital gains per unit each year for tax reporting purposes.

Primary Residence: The R2 Million Exclusion

If you sell your primary home, the first R2 million of the capital gain is excluded from CGT entirely. If the gain exceeds R2m, only the amount above R2m (after the annual R50,000 exclusion) is subject to CGT at the 40% inclusion rate. To qualify: the property must be your main residence and you must have lived in it. Investment properties, holiday homes, and rental properties do not qualify.

Base Cost: What Can You Include?

Data source: SARS Capital Gains Tax Guide

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