i What this page covers
Capital gains tax for an individual in South Africa is not a separate rate. The first R50,000 of gains in the year is excluded, 40% of the rest is added to your taxable income, and that addition is taxed at your marginal rate. The result is an effective CGT rate between 0% and 18%, depending on your other income. The tables show the rand tax and the effective rate on ten gain sizes at five income levels for 2026/27, and the effective rate for every bracket.
Use it to answer "how much CGT on a R500,000 gain" and the capital gains tax calculator for your own income, exclusion already used and gains from more than one asset. Whether SARS treats your profit as a capital gain at all is the question the trading tax article answers.
★ What changed this year
Budget 2026 raised the annual exclusion from R40,000 to R50,000, the primary residence exclusion to R3 million and the year-of-death exclusion to R440,000, all from 1 March 2026. The inclusion rate stayed at 40% for individuals and 80% for companies and trusts, so the maximum effective rate is still 18%. The rules are on the CGT reference page.
| Capital gain | Other income R250,000 | Other income R400,000 | Other income R600,000 | Other income R900,000 | Other income R2,000,000 |
|---|---|---|---|---|---|
| R50,000 | R0 | R0 | R0 | R0 | R0 |
| R75,000 | R2,600 | R3,100 | R3,600 | R4,100 | R4,500 |
| R100,000 | R5,200 | R6,200 | R7,200 | R8,200 | R9,000 |
| R150,000 | R10,400 | R12,400 | R14,400 | R16,400 | R18,000 |
| R200,000 | R15,600 | R18,600 | R21,600 | R24,600 | R27,000 |
| R300,000 | R26,000 | R31,000 | R36,126 | R41,000 | R45,000 |
| R500,000 | R49,145 | R58,290 | R67,326 | R73,800 | R81,000 |
| R750,000 | R80,145 | R94,290 | R106,326 | R114,800 | R126,000 |
| R1,000,000 | R116,135 | R132,816 | R147,186 | R155,800 | R171,000 |
| R2,000,000 | R273,021 | R294,676 | R311,186 | R319,800 | R351,000 |
| Capital gain | Other income R250,000 | Other income R400,000 | Other income R600,000 | Other income R900,000 | Other income R2,000,000 |
|---|---|---|---|---|---|
| R50,000 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| R75,000 | 3.5% | 4.1% | 4.8% | 5.5% | 6.0% |
| R100,000 | 5.2% | 6.2% | 7.2% | 8.2% | 9.0% |
| R150,000 | 6.9% | 8.3% | 9.6% | 10.9% | 12.0% |
| R200,000 | 7.8% | 9.3% | 10.8% | 12.3% | 13.5% |
| R300,000 | 8.7% | 10.3% | 12.0% | 13.7% | 15.0% |
| R500,000 | 9.8% | 11.7% | 13.5% | 14.8% | 16.2% |
| R750,000 | 10.7% | 12.6% | 14.2% | 15.3% | 16.8% |
| R1,000,000 | 11.6% | 13.3% | 14.7% | 15.6% | 17.1% |
| R2,000,000 | 13.7% | 14.7% | 15.6% | 16.0% | 17.5% |
| Marginal rate | Effective CGT rate (40% inclusion) | Taxable income band 2026/27 |
|---|---|---|
| 18.0% | 7.2% | R0 to R245,100 |
| 26.0% | 10.4% | R245,101 to R383,100 |
| 31.0% | 12.4% | R383,101 to R530,200 |
| 36.0% | 14.4% | R530,201 to R695,800 |
| 39.0% | 15.6% | R695,801 to R887,000 |
| 41.0% | 16.4% | R887,001 to R1,878,600 |
| 45.0% | 18.0% | R1,878,601 and above |
How these figures work
Take the gain, subtract the R50,000 annual exclusion, include 40% of what is left in taxable income, and compute the tax at the brackets. Because the included amount is added on top of your other income, it is taxed at your marginal rate, or spills into the next bracket for large gains, which is why the rand tax in the first table rises faster than the gain for the lower incomes.
The effective rate on the gain is the tax divided by the whole gain, including the excluded R50,000, so it is below the bracket rate times 40% for small gains and approaches it for large ones. A taxpayer with R250,000 of other income is in the 26% bracket, so each included rand is taxed at 26% and the ceiling on the effective rate for a huge gain is 10.4%; at R2 million of income the ceiling is 18%.
★ A worked example
A R500,000 gain for someone earning R600,000: subtract the R50,000 exclusion to get R450,000, include 40%, R180,000, in taxable income, taking it from R600,000 to R780,000. Tax rises from R132,907 to R200,233, a CGT bill of R67,326, which is 13.5% of the gain. The same gain for someone earning R2 million costs R81,000, 16.2% of the gain, because every included rand is taxed at 45%.
✕ Common mistakes
- Applying a flat 18%. That is the maximum, reached only by taxpayers in the 45% bracket; most people pay between 7% and 15% of a gain.
- Forgetting the exclusion is annual and shared. R50,000 covers all your gains in the year, not R50,000 per asset.
- Treating frequent trading profit as a capital gain. SARS taxes it as income at the full marginal rate; the trading tax article covers the test.
- Ignoring the base cost. The gain is proceeds minus base cost including brokerage; a lower base cost means a higher gain.
- Missing the primary residence exclusion. The first R3 million of gain on the home you live in is excluded before any of this applies.
Notes on reading these figures
Figures use the 2026/27 brackets and primary rebate for a taxpayer under 65 whose R50,000 annual exclusion is unused, with no assessed capital losses. Gains on a primary residence, small business assets and personal-use assets have their own exclusions and are not shown.
Terms used on this page
Spotted an outdated figure? If a figure or rate on this page no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
See also: Crypto Exchange Fees in South Africa.
Frequently asked questions
How much tax do I pay on a R25,000 salary in South Africa?
About R3,381 a month in PAYE under the 2026/27 tables for someone under 65 with no retirement contribution, plus R177.12 UIF, leaving roughly R21,440 net. A 7.5% retirement contribution brings the PAYE down by about R400.
At what salary do I start paying tax?
Above R8,250 a month (R99,000 a year) if you are under 65 in 2026/27. The thresholds are higher for taxpayers over 65 and over 75 because of the additional rebates.
Why is my payslip PAYE different from the table?
Medical scheme credits, a retirement contribution, a travel allowance, a mid-year start or a bonus all change the figure. The table is the base case; the PAYE calculator takes your details.
Is UIF really only R177.12 on a R100,000 salary?
Yes. The contribution ceiling is R17,712 of monthly remuneration, so the maximum employee contribution is R177.12 regardless of salary.
Does a 13th cheque use these tables?
Not directly. A bonus is added to the annual income and taxed by the annualisation method, which usually means a higher percentage comes off the bonus than off the salary. The Bonus Tax Calculator on this site does that calculation.
Do these figures apply to provisional taxpayers and freelancers?
The brackets and rebates do, but freelancers pay through provisional tax twice a year rather than monthly PAYE, and UIF does not apply to them. The Provisional Tax Calculator covers that.
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