CGT on disposing of an asset, with the annual exclusion and 40% inclusion in income.
CGT due
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Capital gain
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Included in income
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Effective rate
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Your breakdown
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Amount
Worked example
Say you sell an asset for R500,000 that cost you R300,000, you are under 65, and you already have R450,000 of other taxable income. The capital gain is proceeds less base cost, which is R200,000. Subtract the R40,000 annual exclusion to get R160,000, then include 40% of that in your taxable income, which is R64,000. That R64,000 is added on top of your salary, lifting your taxable income from R450,000 to R514,000. Because it sits in the 31% band, with a thin slice spilling into the 36% band, the extra tax works out to R19,900. That is the CGT, an effective 9.95% of the original R200,000 gain.
How it is calculated
South Africa has no standalone capital gains tax. Instead a fixed share of your net gain is folded into ordinary taxable income and taxed at whatever marginal rate you land on. For individuals the inclusion rate is 40%, after a yearly exclusion that shelters the first R40,000 of gains. Because the included amount stacks on top of your other income, two people with the same gain can pay different CGT depending on their salaries. The top marginal rate of 45% sets the ceiling, so the most an individual can pay is 18% of a gain, being 45% times the 40% inclusion. Your primary residence carries its own large exclusion, which the headline calculator does not assume.
Frequently asked questions
How is capital gains tax calculated in South Africa?
There is no separate CGT in South Africa. You take the gain (proceeds less base cost), deduct the R40,000 annual exclusion, then include 40% of the balance in your taxable income. That included amount is taxed at your marginal rate, so the maximum effective rate is 18% (45% top rate times 40% inclusion).
What is the annual exclusion for capital gains in South Africa?
For the 2025/26 tax year SARS allows individuals to exclude the first R40,000 of net capital gains from the inclusion calculation each year. This exclusion cannot be carried forward or back, so any unused portion is lost at year-end. In the year of death the exclusion rises to R300,000.
Does the R2 million primary residence exclusion apply to this calculator?
No. This calculator covers general asset disposals only. The primary residence exclusion allows individuals to exclude up to R2 million of the gain on selling a home that qualifies as their primary residence under SARS rules. You should calculate that portion separately or consult a tax professional for property sales.
What assets attract capital gains tax in South Africa?
Most assets are subject to CGT, including shares, unit trusts, property (other than the primary residence exclusion), cryptocurrency, and business interests. Some assets are specifically exempt, such as a motor vehicle for personal use and proceeds from certain life assurance policies. SARS provides a full list of excluded assets in the Eighth Schedule to the Income Tax Act.