What this page covers
Quick answer: South Africa does not tax a capital gain at a separate rate. Key figures: inclusion rate, individual 40%; maximum effective rate 18%; annual exclusion R50,000; primary residence exclusion R3m. Figures current at 15 October 2026, from South African Revenue Service, capital gains tax.
South Africa does not tax a capital gain at a separate rate. A portion of the gain is included in taxable income and taxed at your marginal rate, which is why the effective rate depends on what else you earn.
Key findings
- Individuals include 40% of a net capital gain in taxable income, so the maximum effective rate is 18%.
- The first R50,000 of net capital gains each year is excluded for individuals.
- The first R3 million of the gain on a primary residence is not taxed, for disposals from 1 March 2026.
- Companies include 80% of a gain, an effective rate of 21.6%.
What changed in 2026
From 1 March 2026 the annual exclusion rose from R40,000 to R50,000 and the primary residence exclusion from R2 million to R3 million, the first increase to either since 2012.
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★ What changed this year
Budget 2026 raised the annual exclusion from R40,000 to R50,000, the year-of-death exclusion from R300,000 to R440,000, the primary residence exclusion from R2 million to R3 million and the small business asset exclusion from R1.8 million to R2.7 million, all from 1 March 2026. The inclusion rates did not change: 40% for individuals since 2016/17, 80% for companies and other trusts. The effective maximum moved from 16.4% to 18.0% in 2017/18 because the top marginal rate rose to 45%, not because the CGT rules themselves changed.
| Taxpayer | Inclusion rate | Highest marginal rate | Effective CGT rate |
|---|---|---|---|
| Individual | 40% | 45% | 18% |
| Special trust | 40% | 45% | 18% |
| Company | 80% | 27% | 21.6% |
| Other trust | 80% | 45% | 36% |
Source: TradeAnswers, Capital Gains Tax Rates and Exclusions. Free to reuse with attribution (CC BY 4.0).
| Exclusion | Amount | Applies to |
|---|---|---|
| Annual exclusion | R50,000 | Individuals and special trusts, each year |
| Exclusion in the year of death | R440,000 | Replaces the annual exclusion |
| Primary residence | R3,000,000 of the gain | One residence, mainly used as a home |
| Small business assets | R2,700,000 lifetime | Owner aged 55 or older, or on ill health |
| Personal use assets | Full gain | Assets not held for investment |
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| Year | Individual inclusion | Company inclusion | Annual exclusion |
|---|---|---|---|
| 2026/27 | 40% | 80% | R50,000 |
| 2025/26 | 40% | 80% | R40,000 |
| 2024/25 | 40% | 80% | R40,000 |
| 2016/17, previous increase | 40% | 80% | R40,000 |
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| Gain | Included in income | At 26% marginal | At 36% marginal | At 45% marginal |
|---|---|---|---|---|
| R100,000 | R24,000 | R6,240 | R8,640 | R10,800 |
| R250,000 | R84,000 | R21,840 | R30,240 | R37,800 |
| R500,000 | R184,000 | R47,840 | R66,240 | R82,800 |
| R1,000,000 | R384,000 | R99,840 | R138,240 | R172,800 |
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| Year | Individual inclusion | Company inclusion | Annual exclusion | Maximum effective, individual |
|---|---|---|---|---|
| 2026/27 | 40% | 80% | R50,000 | 18.0% |
| 2025/26 | 40% | 80% | R40,000 | 18.0% |
| 2024/25 | 40% | 80% | R40,000 | 18.0% |
| 2023/24 | 40% | 80% | R40,000 | 18.0% |
| 2022/23 | 40% | 80% | R40,000 | 18.0% |
| 2021/22 | 40% | 80% | R40,000 | 18.0% |
| 2020/21 | 40% | 80% | R40,000 | 18.0% |
| 2019/20 | 40% | 80% | R40,000 | 18.0% |
| 2018/19 | 40% | 80% | R40,000 | 18.0% |
| 2017/18 | 40% | 80% | R40,000 | 18.0% |
| 2016/17 | 40% | 80% | R40,000 | 16.4% |
| 2015/16 | 33.3% | 66.6% | R30,000 | 13.7% |
| 2012/13 | 33.3% | 66.6% | R30,000 | 13.3% |
| 2011/12 | 25% | 50% | R20,000 | 10.0% |
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How these figures work
A capital gain is not taxed at its own rate in South Africa. A portion of it, the inclusion rate, is added to taxable income and taxed at whatever your marginal rate turns out to be. The effective rate quoted in the table is the maximum: inclusion rate multiplied by the highest marginal rate.
The gain itself is proceeds less base cost. Base cost includes what you paid plus the costs of acquiring and disposing, so brokerage, securities transfer tax and transfer costs all reduce the gain. The annual exclusion is then applied to the net figure for the year, after losses have been set off against gains.
★ A worked example
An individual sells a JSE share portfolio for R620,000 that cost R400,000, having paid R6,200 in brokerage and securities transfer tax across the two transactions.
The gain is R620,000 less R400,000 less R6,200, which is R213,800. Subtract the annual exclusion of R50,000 and R163,800 remains. At the 40% inclusion rate, R65,520 is added to taxable income.
If that income falls in the 36% bracket, the tax on the gain is R23,587, an effective rate of 11.0% on the original gain rather than the 18% maximum.
✕ Common mistakes
- Applying the effective rate to the gain directly. The 18% figure is a ceiling that only applies at the top marginal rate. Most disposals are taxed at well below it.
- Forgetting to add transaction costs to base cost. Brokerage, securities transfer tax and Strate fees all reduce the gain. Leaving them out overstates the tax.
- Using the annual exclusion per disposal. It applies once a year to the net gain, not to each sale.
- Assuming a loss reduces other income. A capital loss offsets capital gains, this year or in a later year. It does not reduce salary or trading income.
Notes on reading these figures
- The annual exclusion applies to the net gain for the year, after losses. A loss carried forward reduces a later gain rather than other income.
- Whether a share disposal is capital or revenue is the question that decides which set of rules applies. Holding a JSE share for at least three years creates a statutory presumption that the disposal is capital.
- Foreign assets are included at the rand value on the date of each transaction, so the exchange rate movement between purchase and sale forms part of the gain.
To put these figures to work, the Capital Gains Tax Calculator runs the arithmetic on your own numbers, and Trading Cost Calculator covers the same ground in ordinary language. SARS Income Tax Tables and Completing the ITR12 go into the detail this table only summarises.
Terms used on this page
See also: Can I Use My Two-Pot Retirement Withdrawal for Trading Capital? and How Does SARS Tax Cryptocurrency Gains in South Africa? and South African Balance of Payments and South African Ombudsman Schemes.
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.
How these figures are compiled, checked and corrected: our data methodology.
Cite this page
Barosso, G. (2026, October 15). Capital Gains Tax Rates and Exclusions. TradeAnswers. https://www.tradeanswers.co.za/capital-gains-tax-rates-and-exclusions.htmlBarosso, G (2026) Capital Gains Tax Rates and Exclusions, TradeAnswers, figures current at 15 October 2026, https://www.tradeanswers.co.za/capital-gains-tax-rates-and-exclusions.htmlThe tables and the CSV on this page are free to reuse under a CC BY 4.0 licence: attribution with a link to this page. See the Press & Data Licence page.
Frequently asked questions
Is my share sale capital or revenue?
It depends on intention and pattern. Frequent short-term trading points to revenue; holding for growth points to capital. Holding a JSE share for at least three years creates a statutory presumption that the disposal is capital.
Does the annual exclusion apply to every asset?
It applies to the net gain for the year across all assets, not per asset. The primary residence and small business exclusions are separate and apply on top.
How is a foreign asset treated?
Proceeds and base cost are both converted to rand at the rate on each transaction date, so the exchange rate movement between purchase and sale forms part of the gain.
What happens to a capital loss?
It is set off against capital gains in the same year. Anything left carries forward indefinitely against future gains.
Do I pay CGT inside a tax-free savings account?
No. Gains inside the wrapper are exempt, which is what makes it the first place to hold growth assets.
Does CGT apply to CFDs?
Rarely. A CFD position is almost always revenue in nature given how it is used, so the profit is taxed at the full marginal rate rather than through the CGT rules.
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