Capital Gains Tax Calculator
Calculate capital gains tax on asset disposals in South Africa.
Last reviewed: Tax year: 2026/2027Source: SARS — Capital Gains Tax
What CGT is (and isn't)
Capital gains tax is not a separate tax in South Africa. It’s a portion of your gain from selling an asset that gets folded into your normal taxable income and taxed at your marginal income-tax rate. No 14% flat rate, no separate declaration — it’s part of your annual ITR12 return.
A “capital gain” is the difference between what you received when disposing of an asset (proceeds) and what it cost you to acquire it plus qualifying expenses (base cost). SARS applies an inclusion rate to the net gain — only that portion is added to your income.
Assets that can trigger CGT include: property (other than your primary residence, within limits), shares and ETFs held outside a TFSA, collectibles, second homes, crypto, and business interests. Cash in a bank account, your primary residence below certain thresholds, and retirement funds are excluded.
Inclusion rates and exclusions for 2026/2027
| Taxpayer type | Inclusion rate | Effective max rate |
|---|---|---|
| Individuals (and special trusts) | 40% | 18% (45% × 40%) |
| Companies | 80% | 21.6% (27% × 80%) |
| Other trusts | 80% | 36% (45% × 80%) |
“Effective max rate” is what the capital gain ends up costing you at the top marginal rate — useful for back-of-envelope estimates. Most individuals fall well below the top bracket, so their effective CGT rate is usually 7–15%.
| Exclusion | Amount |
|---|---|
| Annual capital gain exclusion | R50,000 |
| Primary residence exclusion | R3,000,000 |
| Exclusion in year of death | R300,000 |
Worked examples
Selling R50,000 of JSE shares
Single investor, under 65, 36% marginal income tax rate. Bought for R40,000, sold for R90,000. Held outside a TFSA.
- Proceeds
- R90,000
- Base cost
- R40,000
- Capital gain
- R50,000
- Less annual exclusion
- −R50,000
- Taxable gain
- R0
Primary residence sold for R4m (bought for R2m)
Individual, 36% marginal rate. Eligible for the primary residence exclusion.
- Proceeds
- R4,000,000
- Base cost (original + improvements)
- R2,000,000
- Capital gain
- R2,000,000
- Less primary residence exclusion
- −R3,000,000
- Taxable gain
- R0
Investment property sold for R3m (bought for R1.5m)
Not your primary residence. Individual at 36% marginal rate, annual exclusion available.
- Proceeds
- R3,000,000
- Base cost
- R1,500,000
- Capital gain
- R1,500,000
- Less annual exclusion
- −R50,000
- Net gain
- R1,450,000
- Inclusion rate 40%
- R580,000 added to taxable income
- Tax at 36% marginal rate
- R208,800
Base cost — what you can add
Base cost is not just what you paid for the asset. You can legitimately add costs that increased or preserved its value, including:
- Transfer duty and conveyancer fees paid when you acquired the property.
- Capital improvements (not repairs). New roof, pool, extension — yes. Painting and routine maintenance — no.
- Brokerage on share purchases and sales.
- Professional fees directly related to acquisition or disposal (valuation, legal).
Keep receipts. If SARS audits, you need to prove the base cost. For assets held on or before 1 October 2001 (the CGT inception date), you can use one of three valuation methods: time-apportionment, 20% of proceeds, or a formal 2001 market valuation.
Primary residence exclusion — what counts
To qualify, the property must have been your primary residence — where you ordinarily lived — for the period you owned it. If you only lived in it part of the time (e.g., rented it out for a few years), the R3,000,000 exclusion is apportioned pro-rata to the period of occupation.
The exclusion caps out at R3,000,000 of gain — not of proceeds. On gains above that threshold, CGT applies to the excess. If two spouses jointly own the residence, they share the R3,000,000 exclusion (R1,500,000 each).
Trusts and companies do not qualify for the primary residence exclusion, even if a natural person lives there.
Crypto and offshore assets
SARS treats crypto gains as capital (or revenue, depending on trading frequency). Each disposal — selling, swapping to a different coin, paying for goods with crypto — is a CGT event. Hodling is not a CGT event.
Gains on foreign-currency-denominated assets are converted to rand at the spot rate on the disposal date, with the base cost converted at the acquisition spot rate. Forex movement is part of the gain. Offshore shares held in a local ZAR-denominated fund (like a feeder fund) are treated in rand terms throughout.
How this calculator works
Enter the proceeds, base cost, and whether the asset qualifies for the primary residence exclusion. The calculator applies the annual R50,000 exclusion (if you haven’t used it already), then applies the 40% inclusion rate for individuals, and shows the additional tax at your marginal bracket based on your other income.
Switch the tax year on the calculator UI to see how a prior year’s rules would have applied — inclusion rates and annual exclusions have moved historically (the annual exclusion was R40,000 in 2025/2026; the primary residence exclusion was R2,000,000).
Sources
Frequently Asked Questions
Individuals receive an annual exclusion of R50,000 on capital gains. This means the first R50,000 of net capital gains in a tax year is tax-free (subject to the 40% inclusion rate).
The first R3,000,000 of capital gain on the sale of your primary residence is excluded from CGT. This applies to one property that you ordinarily reside in for at least 3 years.
For individuals, 40% of the net capital gain is included in taxable income. This is then taxed at your marginal rate. Example: R100,000 gain → R40,000 included → taxed at your marginal rate (18–45%).
A capital gain occurs when you sell an asset for more than you paid for it (adjusted for cost and inflation). Assets include shares, property, vehicles, art, and other valuables. CGT is triggered only on disposal.