Capital Gains Tax Calculator
South Africa — 8th Schedule
Calculate South African CGT under the 8th Schedule of the Income Tax Act 58 of 1962. Applies the primary residence exclusion (R3,000,000), annual exclusion (R50,000; R440,000 in year of death), inclusion rates (40% individual, 80% company/trust), and prior capital losses. Maximum effective rates: 18% (individual), 21.6% (company), 36% (other trust).
Individual inclusion rate
40%
8th Schedule Para 10 — ITA 58/1962
Annual exclusion
R50,000
Para 5(2) — R440K in year of death
Primary residence exclusion
R3,000,000
Para 44 — on gain, not proceeds
Max effective rate (individual)
18%
40% × 45% marginal rate
What is capital gains tax in South Africa?
CGT defined — 8th Schedule, Income Tax Act 58/1962
Capital gains tax (CGT) in South Africa is not a separate tax — it is a component of income tax. When a taxpayer disposes of an asset at a profit, the resulting capital gain is partially included in their taxable income for that year and taxed at their marginal income tax rate. The fraction included is determined by the inclusion rate: 40% for individuals and special trusts, 80% for companies and other trusts. CGT is governed by the Eighth Schedule to the Income Tax Act 58 of 1962, which took effect on 1 October 2001 — the valuation date.
For an individual at the top 45% marginal rate, the maximum effective CGT rate is 18% (40% × 45% = 18% of the capital gain). For a company at 27%, the maximum effective rate is 21.6% (80% × 27%). For other trusts at 45%, the maximum effective rate is 36%(80% × 45%). These are maximum rates — the actual rate is lower when the taxpayer’s marginal rate is below the top rate.
The annual exclusionof R50,000 for individuals and special trusts means the first R50,000 of net capital gains in any tax year is entirely exempt from CGT. In the year of a taxpayer’s death, this exclusion rises to R440,000 under Paragraph 5(2) of the 8th Schedule. The primary residence exclusion under Paragraph 44 further excludes the first R3,000,000 of capital gain on the disposal of a primary home — meaning most South African homeowners who sell their primary residence pay no CGT at all.
Statutory calculator
Calculate capital gains tax
Quick Mode requires only proceeds and base cost — the server uses default settings (individual taxpayer, R50,000 annual exclusion, 40% inclusion rate, maximum effective rate shown). Switch to Detailed Mode to apply the primary residence exclusion, year-of-death annual exclusion, taxpayer type, and your actual marginal rate.
The selling price, or market value at the date of disposal. On death, SARS treats the deceased as having disposed of all assets at market value on the date of death — the market value is the proceeds for CGT purposes.
Acquisition cost plus qualifying capital improvements — not maintenance or repairs. For pre-CGT assets (acquired before 1 October 2001), the base cost is determined using the market value on 1 October 2001 (valuation date) or one of the SARS-prescribed alternative methods.
CGT formula — 8th Schedule ITA 58/1962
(Proceeds − Base cost) − Exclusions × Inclusion rate × Marginal rate
Individuals: 40% inclusion · R50,000 annual exclusion (R440,000 in year of death) · Primary residence: R3M gain excluded
Income Tax Act 58/1962 — 8th Schedule · Budget 2026/27 · SARS
Awaiting calculation
Enter proceeds and base cost. Switch to Detailed Mode to select taxpayer type, asset type, and apply the primary residence exclusion or year-of-death annual exclusion.
CGT rates — all taxpayer types · Budget 2026/27
Capital gains tax rates by taxpayer type — South Africa 2026/27
The effective CGT rate depends on three factors: the taxpayer type (which determines the inclusion rate), the taxpayer’s marginal income tax rate (at which the included gain is taxed), and the exclusions available. Source: 8th Schedule, ITA 58/1962 · SARS Budget 2026/27 Tax Pocket Guide.
| Taxpayer type | Inclusion rate | Marginal rate | Max effective CGT rate | Annual exclusion |
|---|---|---|---|---|
| Individuals (natural persons) | 40% | 18%–45% | 18.0% | R50,000 (R440K at death) |
| Special trusts | 40% | 18%–45% | 18.0% | R50,000 |
| Companies | 80% | 27% | 21.6% | None |
| Other trusts (not special) | 80% | 45% | 36.0% | None |
Source: 8th Schedule ITA 58/1962 · SARS Budget 2026/27 Tax Pocket Guide · Para 5(2), 10, 44
CGT exclusions — Budget 2026/27
All South African CGT exclusions — 8th Schedule
| Exclusion | Amount | Who qualifies | Reference |
|---|---|---|---|
| Annual exclusion | R50,000 per year | Individuals and special trusts | Para 5(2) — 8th Schedule |
| Annual exclusion — year of death | R440,000 | Deceased individual in final tax year | Para 5(2) — 8th Schedule |
| Primary residence exclusion | R3,000,000 (on gain, not proceeds) | Individual or special trust — principal residence only | Para 44 — 8th Schedule |
| Small business exclusion | Up to R2,700,000 | Individual aged 55+ · market value ≤ R15M · active business | Para 57 — 8th Schedule |
| Spousal rollover (death) | Full rollover — no CGT on transfer | Assets transferred to surviving spouse on death | Para 67B — 8th Schedule |
| Pre-CGT asset disposal gain | No CGT on gain pre-1 Oct 2001 | All taxpayers — portion of gain before valuation date | Para 26 — 8th Schedule |
Source: 8th Schedule ITA 58/1962 · SARS Budget 2026/27 Tax Pocket Guide
Calculation methodology
How CGT is calculated in South Africa — step by step
Calculate the capital gain
8th Schedule — Para 3: proceeds minus base cost
The capital gain is the excess of proceeds over the base cost of the asset. Proceeds is the selling price (or market value on disposal — including deemed disposals at death). Base cost is the acquisition cost plus qualifying capital improvements — not repairs or maintenance. If the base cost exceeds the proceeds, the result is a capital loss that can be set off against other capital gains in the same year or carried forward indefinitely.
Apply asset-specific exclusions
8th Schedule — Para 44 (primary residence) · Para 57 (small business)
For a primary residence: exclude the first R3,000,000 of capital gain. If the gain is R3,000,000 or less, no CGT is payable on that disposal. For gains above R3,000,000, only the excess is subject to CGT. The exclusion applies only when the property was used as the taxpayer's principal place of residence throughout the ownership period — apportionment applies if the property was let for any period.
Apply the annual exclusion
8th Schedule — Para 5(2): R50,000 annually · R440,000 in year of death
Subtract the annual exclusion from the capital gain after asset-specific exclusions. For individuals and special trusts, R50,000 per tax year. In the year of the taxpayer's death, the exclusion increases to R440,000 for the deceased. The annual exclusion is shared across all disposals in the year — if multiple assets are sold in the same tax year, the R50,000 is allocated across all gains. Companies and other trusts have no annual exclusion.
Set off prior capital losses
8th Schedule — Para 9: loss carry-forward (indefinite)
Capital losses from prior tax years that were not absorbed can be set off against the net capital gain after the annual exclusion. Capital losses carry forward indefinitely — there is no time limit. In the year of death, the deceased's accumulated capital losses can be set off against the capital gains on the deemed disposal of all assets. Losses cannot be set off against income — only against capital gains.
Apply the inclusion rate
8th Schedule — Para 10: 40% individual · 80% company/trust
Multiply the net capital gain (after all exclusions and losses) by the applicable inclusion rate to get the included amount — the portion added to taxable income. For individuals and special trusts: 40%. For companies: 80%. For other trusts: 80%. The included amount is not a separate tax — it is added to the taxpayer's taxable income for the year and taxed at their marginal income tax rate.
Tax at the marginal rate — effective CGT calculation
ITA 58/1962 — s6 (income tax table) applied to included gain
The included amount is taxed at the taxpayer's marginal income tax rate. For an individual in the 45% bracket: effective CGT rate = 40% × 45% = 18% of the original capital gain. For a company: 80% × 27% = 21.6%. The actual rate is lower when the taxpayer's marginal rate is below the top rate. The CGT is declared in the income tax return (ITR12 for individuals) as part of the normal tax assessment process.
Worked examples
Three CGT calculations — property, shares, and death
Example 1: Primary residence — gain below R3M exclusion (zero CGT)
Example 2: Investment property — individual, 36% marginal rate
Example 3: Death — listed shares, R440,000 year-of-death exclusion
Base cost and pre-CGT assets
How to determine the base cost — including pre-CGT assets
The base cost is the foundation of every CGT calculation. An incorrect base cost produces an incorrect gain — either overstating the CGT liability (if base cost is understated) or understating it (if base cost is overstated). The rules are particularly complex for assets acquired before 1 October 2001.
Post-CGT assets (acquired on or after 1 October 2001)
The base cost is the actual acquisition cost plus all qualifying capital improvement costs. Capital improvements must be improvements that enhance the value of the asset — not maintenance, repairs, or running costs. For property, keep records of all structural renovations, additions, and improvements. For listed shares, the base cost is the purchase price plus brokerage costs and securities transfer tax (STT).
Pre-CGT assets (acquired before 1 October 2001)
For assets acquired before 1 October 2001, the base cost cannot simply be the original purchase price — it is determined using the market value on 1 October 2001 (the valuation date) or one of SARS's three prescribed alternatives: (1) the 20% of proceeds rule (20% of the proceeds at disposal), (2) the time-apportionment method (gain apportioned between pre- and post-valuation date periods based on ownership duration), or (3) a SARS-approved independent valuation as at 1 October 2001. For property, the valuation date value is typically established by a SARS-certified valuer.
Improvements and what qualifies
Only capital improvements are added to the base cost. Capital improvements are expenditures that result in a permanent enhancement of the asset's value — a new room addition, a swimming pool installation, a boundary wall. Painting, re-tiling, and general maintenance are not capital improvements and cannot be added to the base cost. Keep invoices and building plans for all capital improvements, as SARS may require supporting documentation on assessment.
CGT and death
How CGT works when a taxpayer dies in South Africa
On the date of death, the Income Tax Act deems the deceased to have disposed of all their assets at market value — a deemed disposal. This triggers CGT on all capital gains embedded in the deceased’s assets. Three major reliefs apply:
R440,000 annual exclusion
Para 5(2)
The annual exclusion for the deceased increases from R50,000 to R440,000 in the year of death (Para 5(2), 8th Schedule).
Spousal rollover
Para 67B
Assets transferred to a surviving spouse at market value are exempt from CGT on the deemed disposal — the spouse inherits the deceased's base cost (Para 67B).
Primary residence exclusion
Para 44
The R3,000,000 primary residence exclusion still applies to the deemed disposal of the primary home on death (Para 44).
CGT on the deemed disposal at death is declared in the deceased’s final income tax return (ITR12) and is an expense of the deceased estate, deductible under Section 4(a) of the Estate Duty Act 45 of 1955.
Practitioner notes
Critical CGT mistakes — what practitioners get wrong
Mistake 1: Confusing the primary residence exclusion with an exemption on the proceeds
The primary residence exclusion of R3,000,000 applies to the capital GAIN — not to the proceeds. A property sold for R5,000,000 with a base cost of R800,000 has a capital gain of R4,200,000. The exclusion shelters the first R3,000,000 of that GAIN, leaving R1,200,000 of taxable capital gain. It does not exempt the first R3,000,000 of the R5,000,000 proceeds. This is the single most common misunderstanding among property sellers — and it has significant financial consequences for high-value property sales.
Mistake 2: Using the wrong base cost for pre-CGT assets
For assets acquired before 1 October 2001, using the original purchase price as the base cost will typically dramatically overstate the capital gain — because the property may have been purchased for a fraction of its 2001 market value. The correct approach is to use the 1 October 2001 market value (obtainable from a SARS-certified valuer), the 20% of proceeds rule, or the time-apportionment method. Practitioners should always ask when an asset was acquired — if the answer is before 1 October 2001, the base cost determination requires specific analysis.
Mistake 3: Omitting CGT on the deemed disposal at death from the estate duty calculation
CGT arising on the deemed disposal at death is a liability of the deceased estate, deductible from the gross estate under Section 4(a) of the Estate Duty Act before estate duty is calculated. Many executors either omit the CGT liability from the estate duty calculation or calculate it incorrectly. The CGT on the deemed disposal must be estimated when the estate duty return (REV267) is filed. Using the R440,000 year-of-death annual exclusion and the spousal rollover (for assets transferring to the surviving spouse) correctly can significantly reduce both the CGT and estate duty liabilities.
Frequently asked questions
Capital gains tax — common questions
What is the capital gains tax inclusion rate in South Africa?
The CGT inclusion rates for Budget 2026/27 under the 8th Schedule of the Income Tax Act 58 of 1962 are: individuals and special trusts — 40%; companies — 80%; other trusts — 80%. The inclusion rate is the fraction of the net capital gain added to taxable income and taxed at the marginal rate. Maximum effective rates: individuals 18% (40% × 45% marginal), companies 21.6% (80% × 27%), other trusts 36% (80% × 45%). These maximum rates apply only at the top marginal rate — the actual effective rate is lower at lower marginal rates.
What is the primary residence exclusion for CGT in South Africa?
The primary residence exclusion under Paragraph 44 of the 8th Schedule excludes the first R3,000,000 of capital GAIN on the disposal of a primary residence from CGT. If the gain is R3,000,000 or less, no CGT is payable. Gains above R3,000,000 attract CGT on the excess. The exclusion applies to natural persons and special trusts only — not companies or other trusts. The property must have been used as the taxpayer's principal place of residence. Apportionment applies if the property was let for any period or used partly for business.
What is the CGT annual exclusion in South Africa?
The annual exclusion for individuals and special trusts is R50,000 per tax year under Paragraph 5(2) of the 8th Schedule — Budget 2026/27. The first R50,000 of net capital gains each year is entirely exempt from CGT. In the year of a taxpayer's death, the exclusion increases to R440,000 for the deceased. The R50,000 exclusion is shared across all disposals in the year — it is not R50,000 per asset. Companies and other trusts have no annual exclusion.
How does CGT work when you die in South Africa?
On death, the 8th Schedule treats the deceased as having disposed of all assets at market value — a deemed disposal that triggers CGT. Three reliefs apply: the annual exclusion increases to R440,000 (Paragraph 5(2)); assets transferred to the surviving spouse at market value attract no CGT — the spouse inherits the deceased's base cost in a rollover (Paragraph 67B); and the primary residence exclusion (R3,000,000) still applies. CGT on the deemed disposal is a deductible liability of the estate under Section 4(a) of the Estate Duty Act.
What is a pre-CGT asset in South Africa?
A pre-CGT asset is acquired before 1 October 2001 — the date South Africa's CGT regime commenced. For pre-CGT assets, the base cost is determined using the market value on 1 October 2001, or one of SARS's three alternatives: the 20% of proceeds rule, the time-apportionment method, or a SARS-approved independent valuation. Using the original purchase price as the base cost for a pre-CGT asset almost always overstates the capital gain. The correct base cost determination for pre-CGT assets requires professional assistance.
Related calculators
Other tools — CGT intersects with these calculations
Income Tax Calculator
MEDIUMCGT is added to taxable income — use this to find your marginal rate before calculating CGT
Estate Duty Calculator
HIGHCGT at death is deductible under s4(a) — must be calculated before filing REV267
Transfer Duty Calculator
LOWBuying investment property? Calculate transfer duty — the acquisition cost (base cost)
Provisional Tax Calculator
MEDIUMLarge capital gain may trigger provisional tax obligations — check your IRP6 position
Wandile Lokwe
FAIS Key Individual · CenturionAI (Pty) Ltd · 20 years South African financial services
All CGT figures are sourced from the 8th Schedule to the Income Tax Act 58 of 1962 and the SARS Budget 2026/27 Tax Pocket Guide. Inclusion rates (40%/80%), annual exclusions (R50,000/R440,000), primary residence exclusion (R3,000,000), and small business exclusion (R2,700,000) are all confirmed against the 8th Schedule as at Budget 2026/27. The CGT on death treatment (deemed disposal, spousal rollover under Para 67B) follows the 8th Schedule and SARS CGT Guide (2025 edition).
CGT quick reference
8th Schedule ITA 58/1962 · Budget 2026/27
Inclusion rate — individuals
Para 10
40%
Inclusion rate — companies
Para 10
80%
Inclusion rate — other trusts
Para 10
80%
Max effective — individual
40% × 45% marginal
18%
Max effective — company
80% × 27%
21.6%
Max effective — other trust
80% × 45%
36%
Annual exclusion (individual)
Para 5(2) per year
R50,000
Annual exclusion — at death
Para 5(2) — year of death
R440,000
Primary residence exclusion
Para 44 — on gain
R3,000,000
Small business exclusion
Para 57 — age 55+, ≤ R15M
R2,700,000
Spousal rollover at death
Para 67B — no CGT
Full rollover
Valuation date
Pre-CGT asset base cost
1 Oct 2001
CGT formula
Proceeds
− Base cost
= Capital gain
− Primary residence excl.
− Annual exclusion
− Prior losses
= Net capital gain
× Inclusion rate (40%/80%)
= Included amount
× Marginal rate
= CGT payable
HIGH DISCLAIMER
CGT calculations depend on accurately establishing the base cost — including valuation date values for pre-CGT assets and the apportionment of the primary residence exclusion if the property was not exclusively residential. A registered tax practitioner must prepare the CGT schedule (IT3(c)) for submission with the ITR12.
Get practitioner access →