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Capital gains tax in South Africa 2026
Capital gains are folded into income tax — 40% of the net gain is added to your taxable income.
At the top 45% marginal rate that works out to 18% effective on the full gain.
The first ZAR 50,000 of gains each year is excluded, raised from ZAR 40,000 on 1 March 2026.
Selling your own home is free of tax on the first ZAR 3 million of gain.
At a glance
- top rate
- 18% effective (45% marginal rate on a 40% inclusion)
- entry band
- First ZAR 50,000 of yearly gains excluded
- tax year basis
- 2026/27 year of assessment, 1 March 2026 to 28 February 2027
- filing deadline
- With the income return — 2026/27 deadlines are announced in mid-2027 (the prior season ran to 23 October 2026 / 22 January 2027)
- residency basis
- Worldwide gains for residents; local property and property-rich shares for non-residents
- regime flag
- ZAR 3 million primary-residence exclusion
Rates
How a gain is taxed 2026/27
| Step | Amount |
|---|---|
| Yearly exclusion | First ZAR 50,000 of net gains tax-free |
| Inclusion rate | 40% of the remaining gain joins taxable income |
| Top effective rate | 18% of the gain (45% band) |
| Exclusion in the year of death | ZAR 440,000 |
Marginal rates apply within each band.
Thresholds & allowances
- Annual exclusionZAR 50,000
Was ZAR 40,000 before 1 March 2026 — the first increase since 2017.
- Primary residence exclusionZAR 3,000,000 of gain
Raised from ZAR 2 million on 1 March 2026; applies to the home you live in.
- Personal-use assetsExcluded
Private cars and belongings are outside the tax. Boats over 10 metres and aircraft over 450 kg empty weight are not treated as personal-use.
- Small business assetsExcluded up to ZAR 15 million
Gains on assets of a qualifying small business escape tax if all its business assets stay under ZAR 15 million in market value (was ZAR 10 million).
Residency
Residency trigger
Residents are taxed on worldwide gains from selling or otherwise disposing of capital assets. Disposal includes sales, exchanges, scrapping — and ceasing to be resident, which triggers a deemed sale of your assets at market value.
Non-resident treatment
Non-residents are taxed only on local immovable property, on shares in a company whose value is 80% or more property (if they hold at least 20%), and on assets of a local business branch.
Notes
- Tax can be deferred when an asset is destroyed and compensation buys a similar one, when a business asset is replaced like-for-like, or when assets pass between spouses.
- Leaving the tax net costs money: emigration is treated as selling everything at market value on departure day, with limited exceptions such as local property that stays taxable anyway.
- Capital losses only offset capital gains, never salary or other income; unused losses roll forward.
- Gains inside a tax-free investment account (ZAR 46,000 yearly contribution cap) are fully exempt.
FAQ
I sold my home at a ZAR 2.5 million gain — what do I owe?
Nothing, if it was your primary residence: the gain sits under the ZAR 3 million exclusion that applies from 1 March 2026.
What rate do I actually pay on investment gains?
Only 40% of the gain is taxed, at your marginal rate. That means at most 18% of the full gain, and nothing at all on your first ZAR 50,000 of gains each year.
Figures: tax year 2026/27 (March–February), compiled from public sources. Not tax advice.