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South Africa Capital Gains Tax Calculator

Calculates the Capital Gains Tax (CGT) liability for individuals, companies, and trusts in South Africa, including annual exclusions, primary residence relief, and applicable tax rates.

Your details

The total amount received from the sale or disposal of the asset.

The original cost of acquiring the asset, plus any allowable improvements.

Costs incurred in selling the asset (e.g., agent commission, advertising, valuation fees).

Select the type of entity disposing of the asset.

Check if the asset sold is your primary home as defined by SARS. Only applicable to individuals.

Your total taxable income for the year of assessment (excluding the capital gain). Required to determine your marginal tax rate for individuals. For companies and trusts, this input is not used for CGT calculation.

Check if the disposal occurs in the year of the owner's death to apply the special exclusion. Only applicable to individuals.

Result

Capital Gains Tax Liability ZAR 95,160.00

The amount of Capital Gains Tax you are liable to pay. For individuals, it's based on the marginal rate. For companies and trusts, it's based on the corporate tax rate.

How it is calculated

Capital Gain Sale price minus base cost and allowable selling expenses.
ZAR 650,000.00
Annual Exclusion Applied The first R40,000 of a capital gain is excluded for individuals.
ZAR 40,000.00
Primary Residence Exclusion Applied Up to R2 million of the capital gain on a primary residence is excluded.
ZAR 0.00
Special Death Exclusion Applied An additional R300,000 exclusion applies in the year of death for individuals.
ZAR 0.00
Net Capital Gain Capital gain after all applicable exclusions.
ZAR 610,000.00
Applicable Inclusion Rate Percentage of the net capital gain included in taxable income.
40 %
Taxable Capital Gain Portion of the net capital gain added to taxable income.
ZAR 244,000.00
Total Taxable Income (incl. Capital Gain) Annual taxable income plus the taxable portion of the capital gain.
ZAR 744,000.00
Marginal Tax Rate Your highest tax bracket rate based on your total taxable income. For companies and trusts, this is not applicable for CGT.
39 %
Effective CGT Rate on Gain CGT paid as a percentage of the total capital gain.
14.6 %
Keep in mind
  • This calculator uses tax rates and exclusion amounts for the 2026 tax year, based on the latest available SARS guidance as of March 2026. These values are subject to change annually.
  • For individuals, the CGT liability is calculated by adding the taxable capital gain to your other income and applying your marginal tax rate.
  • For companies and trusts, the CGT liability is calculated by applying the corporate tax rate (27% for 2026) directly to the taxable capital gain.
  • Complex scenarios involving multiple assets, part-disposals, or assets held before 1 October 2001 require professional advice.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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Deed of Sale for Fixed Property
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What is Capital Gains Tax (CGT) in South Africa?

Capital Gains Tax (CGT) is not a separate tax in South Africa. It forms part of the normal income tax system. When you dispose of an asset (like property, shares, or a business) for more than its base cost, you make a capital gain. A portion of this gain is included in your taxable income for the year and taxed. For individuals, it's taxed at your marginal income tax rate. For companies and trusts, it's taxed at the corporate tax rate. The system provides specific exclusions to reduce the tax burden, particularly for individuals and primary residences.

How is Capital Gains Tax Calculated?

The calculation follows a defined process:

  1. Determine the Capital Gain: This is the selling price, minus the original cost of the asset and any allowable expenses incurred in buying or selling it.
  2. Apply Exclusions (for individuals only):
    • Annual Exclusion: The first R40,000 of a net capital gain in a tax year is exempt.
    • Primary Residence Exclusion: For a property that was your main home, the first R2 million of the capital gain is exempt.
    • Special Death Exclusion: An additional R300,000 exclusion applies to the net capital gain of a deceased person in the year of death.
  3. Calculate the Net Capital Gain: This is the gain remaining after all applicable exclusions.
  4. Apply the Inclusion Rate: Only a percentage of the net capital gain is added to your income. For individuals, it's 40%. For companies and trusts, it's 80%.
  5. Calculate the Taxable Capital Gain: This is the amount (inclusion rate * net capital gain) that is subject to tax.
  6. Apply the Correct Tax Rate:
    • For Individuals: The taxable capital gain is added to your other annual taxable income. The total income determines your highest tax bracket (marginal tax rate). The tax on the taxable capital gain is calculated at this marginal rate.
    • For Companies and Trusts: The taxable capital gain is taxed directly at the corporate tax rate (27% for the 2026 tax year). Other income is not required for this calculation.

Calculation Example for a Company

Let's say a company sells a commercial property for R5,000,000. The original purchase price was R2,000,000 and selling expenses were R200,000.

  • Capital Gain: R5,000,000 - R2,000,000 - R200,000 = R2,800,000
  • Exclusions: None apply to companies.
  • Net Capital Gain: R2,800,000
  • Inclusion (80%): R2,800,000 * 80% = R2,240,000 (This is the taxable capital gain)
  • Corporate Tax Rate (2026): 27%
  • CGT Liability: R2,240,000 * 27% = R604,800
  • Effective Rate on Gain: R604,800 / R2,800,000 ≈ 21.6%

Frequent Scenarios

  • Selling Your Home: The primary residence exclusion of R2 million makes CGT negligible for most homeowners unless the gain is extremely large.
  • Selling Shares: The same rules apply. Keep records of purchase prices and brokerage fees.
  • Inherited Assets: The base cost for the heir is generally the market value at the date of death. CGT may apply when the heir later sells the asset.
  • Gifts (Donations): Donating an asset is considered a disposal at market value, potentially triggering CGT for the donor.

Next Steps and Documents

After estimating your CGT liability, you should declare the capital gain in your annual income tax return (ITR12 for individuals, IT14 for companies). If you are in the process of selling an asset, having a clear legal agreement is crucial. For property sales, a Deed of Sale for Fixed Property outlines all terms. For share sales, use a Sale of Shares Agreement. If you are gifting an asset, a Deed of Donation is necessary to formalize the transfer and document the market value for tax purposes.

Frequently asked questions

What is the Capital Gains Tax rate in South Africa?

There is no single CGT rate. For individuals, up to 40% of the net gain is included in taxable income and taxed at your marginal income tax rate (up to 45%). This results in a maximum effective rate of 18% (40% of 45%). Companies and trusts include 80% of the gain, which is then taxed at the corporate tax rate (27% for 2026).

How much is the CGT exemption for a primary residence?

You can exclude the first R2 million of the capital gain on the sale of your primary home. This exclusion is in addition to the annual R40,000 exclusion for individuals.

Do I pay CGT when I sell my car?

No. Personal-use assets, like a car, are generally exempt from CGT unless you are in the business of buying and selling cars.

How is CGT calculated on inherited property?

You inherit the property at its market value on the date of death. This becomes your new base cost. CGT is only calculated later when you sell the property, based on the gain from that inherited value to your selling price.

Can I deduct the cost of home improvements from CGT?

Yes. The cost of capital improvements that add lasting value to the property (like adding a room or renovating a kitchen) can be added to your base cost, reducing your eventual capital gain.

When do I have to pay CGT?

CGT is not paid separately. The taxable capital gain is declared in your annual income tax return for the tax year in which the asset was sold, and the tax is paid as part of your total income tax liability.

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