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Taxes

South Africa — Tax: Capital Gains

South African individuals include 40% of a capital gain, a maximum effective rate of 18%, with a R50,000 annual exclusion from 2026 and a R3 million primary residence exclusion.

VerifiedGovernment / official sourceSARS — Capital Gains Tax (CGT) and Budget 2026Last reviewed: 2026-10-23

Key facts

  • The inclusion rate is 40% for individuals, deceased estates and special trusts, and 80% for companies and normal trusts.
  • The maximum effective CGT rate is 18% for individuals and special trusts, 21.6% for companies and 36% for other trusts.
  • The Budget 2026 FAQ raises the annual exclusion to R50,000 (first increase since 2017); the primary residence exclusion is R3 million and the death-year exclusion R440,000.
  • Purchasers withhold 7.5% (individuals), 10% (companies) or 15% (trusts) when buying immovable property from a non-resident seller, per a SARS guide effective 3 September 2025.

Steps

  1. 1. Identify the asset — Determine which assets are subject to CGT and calculate their disposal proceeds and original cost, if possible
  2. 2. Calculate the gain — Apply the CGT formula to determine the profit made from the sale, although the exact details of this process are uncertain
  3. 3. Check for exemptions — Review possible exemptions that might apply to the asset or the individual, but details on these are unclear

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