Capital Gains Tax Calculator South Africa 2026
Step-by-step CGT calculation for primary residence and investment property — with R2M exclusion and 40% inclusion rate
Calculator Features
How to Use This Calculator
Select the Primary Residence tab if you live in the property you are selling, or Investment Property for a second home, rental, or commercial property. Enter your selling price, original purchase price, and any capital improvement costs. Select your marginal tax rate. The calculator walks through each step — exclusions, inclusion rate, and final tax.
How Capital Gains Tax Works in South Africa
Step 1: Calculate the capital gain
Capital gain = Selling price − Base cost − Improvements
Base cost is what you originally paid. Qualifying capital improvements add to your base cost.
Step 2: Apply exclusions
Primary residence exclusion: R2 000 000 is excluded from your gain if the property is your primary residence and you have ordinarily resided there. This exclusion covers most South Africans with an average-priced home.
Annual exclusion: Every individual also gets a R40 000 annual exclusion in the year of disposal.
Step 3: Apply the inclusion rate
For individuals, only 40% of the net capital gain is included in taxable income. Trusts and companies face an 80% inclusion rate, making CGT more expensive for those structures.
Step 4: Tax at marginal rate
The included gain is added to your other income for the tax year and taxed at your marginal rate. The maximum effective CGT rate for individuals is 18% (45% marginal × 40% inclusion).
CGT Formula
After Exclusions = Max(0, Capital Gain − Primary Exclusion − Annual Exclusion)
Included Amount = After Exclusions × 40%
CGT Payable = Included Amount × Marginal Tax Rate
Worked Examples
Primary Residence Example
Precious sells her Cape Town home for R3 000 000. She bought it for R1 800 000 and spent R150 000 on renovations. She is in the 36% tax bracket.
Capital gain: R3 000 000 − R1 800 000 − R150 000 = R1 050 000
Less primary residence exclusion: R1 050 000 − R2 000 000 = R0 CGT
Precious pays no CGT. The primary residence exclusion covers her entire gain.
Investment Property Example
Sipho sells his Umhlanga rental apartment for R3 000 000. He bought it for R1 800 000 and spent R150 000 on improvements. He is in the 36% tax bracket.
Capital gain: R3 000 000 − R1 800 000 − R150 000 = R1 050 000
Less annual exclusion: R1 050 000 − R40 000 = R1 010 000 taxable gain
Inclusion (40%): R1 010 000 × 40% = R404 000 added to income
CGT at 36%: R404 000 × 36% = R145 440
Effective CGT rate: 4.85% of selling price
Frequently Asked Questions
What is the primary residence exclusion for CGT in South Africa?
The primary residence exclusion is R2 000 000 (2025/26 tax year). This means the first R2 000 000 of capital gain on your primary home is completely exempt from CGT. If your gain exceeds R2 000 000, only the excess (less the R40 000 annual exclusion) is taxable. The property must be your "ordinary residence" — where you normally live.
Do I pay CGT if I sell at a loss?
No. CGT only applies when you make a profit (capital gain). If you sell at a loss, you have a capital loss which can be carried forward and offset against future capital gains in subsequent tax years. Capital losses cannot be deducted against ordinary income.
When must I pay CGT on a property sale?
CGT is declared in your annual income tax return (ITR12) for the tax year in which the property is disposed of (registered at the Deeds Office). You pay via provisional tax or when SARS assesses your return. SARS may require proof of base cost, improvements, and selling costs — keep all documentation.
What counts as a capital improvement for CGT purposes?
Capital improvements include renovations, extensions, additions, and upgrades that permanently enhance the property's value. Examples: building a new room, installing a pool, adding a garage, upgrading the kitchen or bathroom. Routine maintenance (painting, fixing leaks, replacing broken items) does NOT qualify. Agent commission and conveyancing costs paid on acquisition also form part of your base cost.
What is the CGT inclusion rate for trusts and companies?
The CGT inclusion rate for individuals is 40%, giving a maximum effective rate of 18% (45% × 40%). For trusts, the inclusion rate is 80% — giving an effective rate of up to 36%. For companies, the inclusion rate is also 80% on the corporate tax rate of 27%, giving an effective rate of 21.6%. Holding investment property in a trust or company is rarely tax-efficient from a CGT perspective.