2026/2027 SARS · 40% inclusion rate · R40k annual exclusion

Capital Gains Tax
Calculator.

Calculate CGT on property, shares, or any other asset. For individuals, 40% of your capital gain is included in taxable income and taxed at your marginal rate — with a R40,000 annual exclusion.

Inclusion rate

40%

Individuals (80% for companies)

Max effective rate

18%

40% × 45% top bracket

Annual exclusion

R40,000

Per tax year, individuals

Primary residence

R2m

Exclusion on home sale

The amount you received when you sold the asset.

R

What you paid for the asset, including buying costs (transfer duty, agent fees) and capital improvements.

R

Your total salary and other income this tax year (annual gross). Used to determine your marginal tax rate.

R

CGT payable

R 35 126

effective rate 11.7%

Capital gain

R 300 000

before exclusion

Net gain after exclusion

R 260 000

R40,000 exclusion applied

CGT calculation — step by step

Sale proceedsR 1 000 000
Less: base costR 700 000
Capital gainR 300 000
Less: annual exclusionR 40 000
Net capital gainR 260 000
× inclusion rate (40%)R 104 000
Included in taxable incomeR 104 000
Marginal tax rate36.0%
CGT payableR 35 126

⚠️ This is an estimate only

CGT calculations can be complex — especially for property (primary residence exclusion up to R2m), listed shares, and assets held pre-October 2001 (valuation date rules). Consult a tax practitioner for a definitive assessment.

Written by Rand Tools Editorial Team
Updated 1 March 2026

Data: Effective 1 March 2026 · Income Tax Act 8th Schedule · SARS 2026/27 tax tables · See methodology

Frequently asked questions

What is the capital gains tax rate in South Africa?

South Africa does not have a flat CGT rate. Instead, 40% of your capital gain (for individuals) is included in your normal taxable income and taxed at your marginal PAYE rate. The maximum effective CGT rate for an individual is therefore 40% × 45% = 18% of the capital gain. The effective rate is lower if your marginal rate is lower.

What is the R40,000 annual exclusion?

Every individual is entitled to an annual exclusion of R40,000 — the first R40,000 of your net capital gains in a tax year is completely exempt from CGT. The exclusion is per tax year; it cannot be carried forward if unused. On the year of death, the exclusion increases to R300,000.

Is there CGT on the sale of my primary residence?

Yes, but with a large exclusion. The first R2,000,000 of the capital gain on your primary residence is excluded from CGT. If your home's capital gain is below R2m, you pay no CGT. Above R2m, only the excess (less the annual R40,000 exclusion) is subject to CGT at the 40% inclusion rate. The primary residence exclusion only applies if you actually lived there — rental property does not qualify.

Do I pay CGT on shares in South Africa?

Yes. Capital gains on listed shares held for longer than one day are subject to CGT. Short-term trading profits (classified as income by SARS) are taxed at your full marginal rate, not the CGT inclusion rate. SARS uses a 'predominant purpose' test to distinguish traders from investors — frequent share trading is typically treated as income, not capital.

What is the base cost for CGT purposes?

The base cost is what you paid to acquire the asset, plus any costs to improve it and the direct costs of buying and selling (estate agent commission, transfer duty, legal fees, etc.). For assets held before 1 October 2001 (the CGT valuation date), the base cost is the greater of: the asset's market value on 1 October 2001, or the original cost.

Source: SARS — Capital Gains Tax (Eighth Schedule to the Income Tax Act). Rates for 2026/2027 tax year. sars.gov.za. This calculator is for illustrative purposes only. Consult a tax practitioner for complex CGT situations.

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