CGT Payable

ZARNaN

Capital Gain

ZARNaN

Taxable Gain (after R40K exclusion)

ZARNaN

Inclusion Amount (40%)

ZARNaN

Effective CGT Rate

0.00%

South Africa Capital Gains Tax Calculator — Disposal Proceeds (R) ₹10,00,000

With disposal proceeds (r) of ₹10,00,000, the cgt payable is ZAR23,040.

Last updated: ·Source: SARS — Capital Gains Tax Guide

Sale price or market value of asset disposed

Original cost plus improvement costs. For pre-2001 assets, use valuation date value.

R40,000 annual capital gain exclusion per individual per year

CGT inclusion (40%) is added to income and taxed at your marginal rate

Capital Gain

ZAR12,00,000

Taxable Gain (after R40K exclusion)

ZAR11,60,000

Inclusion Amount (40%)

ZAR4,64,000

CGT Payable

ZAR1,67,040

Effective CGT Rate

13.92%

Individuals: 40% inclusion rate. Companies: 80% inclusion, taxed at 27% corporate rate. Primary residence exclusion: first R2M of gain is exempt. R40,000 annual exclusion per individual. Effective maximum CGT rate for individuals = 40% × 45% = 18%.

What is the South Africa Capital Gains Tax Calculator?

South Africa's Capital Gains Tax (CGT) works by including 40% of the capital gain in taxable income, which is then taxed at the taxpayer's marginal rate. This gives a maximum effective CGT rate of 18% (40% × 45% max rate). There is a R40,000 annual exclusion per individual, and the first R2 million of gain on disposal of a primary residence is exempt.

Formula

Taxable Gain = Capital Gain − R40,000 exclusion. Inclusion = Taxable Gain × 40%. CGT = Inclusion × Marginal Rate.
G
= Capital gain (proceeds − base cost)
0.40
= 40% inclusion rate for individuals
r_marginal
= Marginal income tax rate

How to use the South Africa Capital Gains Tax Calculator

  1. 1

    Step 1

    Enter disposal proceeds (sale price).

  2. 2

    Step 2

    Enter base cost (original cost + improvements).

  3. 3

    Step 3

    Select whether to apply the R40,000 annual exclusion.

  4. 4

    Step 4

    Select your marginal income tax rate.

  5. 5

    Step 5

    View capital gain, inclusion amount, and CGT payable.

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Frequently asked questions

What is the capital gains tax rate in South Africa?

CGT is not a flat rate — it is 40% inclusion rate applied to your marginal income tax rate. Maximum effective CGT rate = 40% × 45% = 18% for individuals. Companies have 80% inclusion at 27% corporate rate (max 21.6%).

Is there a primary residence exemption for CGT in South Africa?

Yes. The first R2,000,000 of capital gain on disposal of a primary residence is excluded from CGT. If the full gain is R2M or less and the property was the primary residence for its entire ownership, no CGT applies.

What is the annual CGT exclusion in South Africa?

Individuals have an R40,000 annual capital gain exclusion — meaning the first R40,000 of net capital gain per year is not subject to CGT. This is also used on death (R300,000 death exclusion replaces the annual exclusion in the year of death).

Is CGT payable on shares and unit trusts?

Yes. Disposal of listed securities (shares, ETFs) is subject to CGT. Proceeds minus base cost gives capital gain. For unit trusts, the "switch" between funds is also a disposal event triggering CGT.

When must CGT be reported in South Africa?

CGT is reported via the annual income tax return (ITR12). It is not a separate tax — the inclusion amount is added to taxable income. Payment is via provisional tax (IRP6) if you earn non-PAYE income.

Sources

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