Capital Gains Tax in South Africa (2026/27): New R50,000 and R3 Million Exclusions

By Finance Guide Editors Updated October 2026 · 5 sources · 3 min read

Prices and facts checked 16 October 2026. We don't accept payment for rankings.

Short answer: capital gains tax (CGT) isn't a separate tax. Part of your gain is added to your taxable income and taxed at your normal rate, so individuals pay an effective rate of no more than 18%. Budget 2026 raised the annual exclusion to R50,000 (from R40,000) and the primary residence exclusion to R3 million (from R2 million). The exclusion in the year of death went up to R440,000 (National Treasury Budget 2026 tax guide; Moonstone).

The key CGT numbers for 2026/27

Sources: Treasury Budget 2026 tax guide and Moonstone's Budget summary.

How CGT is calculated

1. Work out the gain: the selling price minus the "base cost" (what you paid plus qualifying costs, such as transfer costs and improvements).
2. Subtract the annual exclusion of R50,000. It applies to all your gains and losses in the tax year combined.
3. Include 40% of what's left in your taxable income. At the top marginal rate of 45%, 40% inclusion gives the 18% maximum effective rate in the Treasury guide.
4. It's taxed at your marginal rate, together with your other income. See our salary after tax calculator for the brackets.

CGT is in the Eighth Schedule to the Income Tax Act. It applies to residents on assets anywhere in the world, and to non-residents mainly on South African property (SARS).

Worked examples (2026/27, under 65)

We calculated these with the method above and the SARS 2026/27 tax table.

Selling shares (R200,000 gain, R500,000 other income).

• Gain after exclusion: R200,000 − R50,000 = R150,000
• Included in taxable income (40%): R60,000
• Extra tax: about R20,090, an effective 10% of the gain

A smaller gain (R80,000, R300,000 other income).

• Included: (R80,000 − R50,000) × 40% = R12,000
• Extra tax: about R3,120

Selling your home for a R3.5 million gain (R600,000 other income).

• Primary residence exclusion: R3,000,000, leaving R500,000
• Annual exclusion: R500,000 − R50,000 = R450,000
• Included (40%): R180,000
• Extra tax: about R67,326. Under the old R2 million exclusion, the gain would have been R1 million more.

What's excluded from CGT

According to the Treasury tax guide, specific exclusions include:

• The first R3 million of gain or loss on your primary residence
• Most personal-use assets, such as your car or furniture
• Retirement benefits
• Payouts from original long-term insurance policies
• Gains inside a tax-free savings account, which are fully exempt (SARS)

A home office reduces your home exclusion. If you claimed home office expenses, the office's share of the gain doesn't qualify for the primary residence exclusion (SARS). See our home office guide.

When CGT is triggered

A "disposal" triggers CGT. That includes a sale, a donation, an exchange, a loss, death and emigration (Treasury tax guide). Donating an asset can therefore trigger both CGT and donations tax.

Non-residents selling property: the buyer must withhold an amount as an advance payment towards the seller's tax (SARS).

How to declare a capital gain

Declare it on your annual ITR12 return for the tax year in which you disposed of the asset. Keep records of what you paid and any improvements, including invoices, transfer documents and broker statements. Big gains can also make you a provisional taxpayer for that year. See our provisional tax guide.

FAQ

What is the CGT annual exclusion for 2026/27?

R50,000 for individuals and special trusts, up from R40,000.

How much of a gain on my house is tax-free?

The first R3 million of the gain on your primary residence, plus the R50,000 annual exclusion, according to the Budget 2026 tax guide.

What is the capital gains tax rate in South Africa?

Individuals include 40% of the net gain in taxable income, which gives a maximum effective rate of 18%.

Is there CGT on a tax-free savings account?

No. Growth in a TFSA, including capital gains, is tax-free.

Is there CGT when someone dies?

Death is treated as a disposal, but the annual exclusion rises to R440,000 in the year of death, and assets left to a surviving spouse are generally treated differently. Speak to the executor.

Changelog: 16 Oct 2026, first published with the Budget 2026 exclusions.