Capital Gains Tax in South Africa 2026 Explained

How capital gains tax works in South Africa. The annual exclusion, inclusion rate, and what you pay when you sell assets.

What is Capital Gains Tax

CGT is tax on the profit you make when you dispose of an asset — property, shares, a business, or other investments. It is not a separate tax but is included in your normal income tax.

How It Is Calculated

Your capital gain is the selling price minus the base cost. Individuals get an annual exclusion of R40,000. Then 40% of the remaining gain (the inclusion rate) is added to your taxable income and taxed at your marginal rate.

Example

If you make a R200,000 gain on shares: subtract the R40,000 exclusion = R160,000. Include 40% = R64,000 added to your taxable income. At a 36% marginal rate, you pay about R23,040 in CGT.

Key Exemptions

Your primary residence has a R2 million exclusion on the gain. Retirement fund proceeds and personal-use assets like your car are also generally excluded from CGT.