Less agent commission and selling costs if known
Include purchase price + transfer costs + capital improvements
Include all income for the year including the CGT inclusion amount
Enter your property sale details and click Calculate to see your estimated capital gains tax.
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Get a free bond quote from ooba →Capital Gains Tax on Property in South Africa — 2026 Rules
Capital gains tax (CGT) in South Africa is not a separate tax — it is an addition to your income tax. When you sell a property for more than you paid for it, the gain is partially included in your taxable income for that year, and taxed at your marginal income tax rate.
How CGT Is Calculated
The calculation follows four steps: (1) calculate the capital gain (proceeds minus base cost); (2) deduct applicable exclusions (R2M primary residence and/or R40,000 annual); (3) multiply the remaining gain by the inclusion rate (40% for individuals, 80% for companies and trusts); and (4) add the included gain to your other taxable income for the year and apply your marginal tax rate.
The Primary Residence Exclusion
South African tax residents who sell their primary residence receive the most generous exemption in the CGT system: the first R2,000,000 of any capital gain is completely excluded. This means most homeowners who have lived in their property pay little or no CGT when they sell. The property must genuinely be your primary home — you cannot claim this exclusion on a second home, holiday property, or investment property.
The Annual Exclusion
Every individual taxpayer receives an annual exclusion of R40,000 from capital gains (R300,000 in the year of death). This exclusion applies after the primary residence exclusion and covers gains from all sources, not just property. It is a use-it-or-lose-it benefit for that tax year.
What Counts as the Base Cost?
Your base cost is more than just the purchase price. It includes: the original purchase price; transfer duty and transfer costs paid on acquisition; legal fees paid on acquisition; and the cost of capital improvements made during ownership (renovations, additions — not repairs or maintenance). Selling costs such as agent commission and compliance certificates can be deducted from proceeds, effectively reducing your gain.
Trusts and Companies
Properties held in trusts are subject to an 80% inclusion rate (versus 40% for individuals), with trust income taxed at 45%. This produces an effective maximum CGT rate of 36% — significantly higher than for individuals. Companies also use an 80% inclusion rate, taxed at 28%, for an effective rate of 22.4%. Ownership structure has major CGT implications and should be discussed with a tax professional.
Frequently Asked Questions
For individuals, 40% of any capital gain is included in taxable income. This included amount is then taxed at your marginal income tax rate. At the maximum marginal rate of 45%, the effective maximum CGT rate is 18% (40% × 45%).
South African residents selling their primary home receive a R2,000,000 exclusion from any capital gain. There is also a R40,000 annual exclusion. Together, these mean most homeowners pay no CGT on the sale of their main home.
Your base cost includes the original purchase price, transfer costs paid on acquisition, legal fees on acquisition, and the cost of capital improvements (not repairs). Selling costs like agent commission can be deducted from proceeds, reducing the gain.
Yes. Trusts have an 80% inclusion rate (vs 40% for individuals), and trust income is taxed at 45%, giving an effective CGT rate of up to 36%. Companies have an 80% inclusion rate taxed at 28% (effective 22.4%). Speak to a tax professional about ownership structure before buying investment property.
Yes — include all allowable costs in your base cost (improvements, acquisition costs), ensure you use your R40,000 annual exclusion, sell in a year where other income is lower if possible, and consult a tax professional about your ownership structure. Seek professional tax advice before selling.