What is the Capital Gains Tax Rate in South Africa? (2025 Guide)

The capital gains tax rate in South Africa for individuals ranges from 7.2% to 18% depending on your income tax bracket. This effective rate applies to 40% of your capital gain (called the inclusion rate) after annual exemptions.

Current CGT Rates (2025/2026)

Taxpayer Type	Inclusion Rate	Effective Tax Rate Range
Individuals	40%	7.2% 18%
Companies	80%	22.4% 27.2%
Trusts	80%	36%

How Much Will You Actually Pay?

Example 1 Property Sale:

You sell an investment property and make R200,000 profit:

• Less annual exclusion: R200,000 R40,000 = R160,000
• Taxable amount (40%): R160,000 × 40% = R64,000
• CGT owed: R64,000 × your tax rate (18%-45%)

Example 2 Primary Home:

You sell your family home for R3 million (R500,000 profit):

• Less primary residence exclusion: R500,000 R2,000,000 = R0
• **You pay nothing** fully exempt

When Do You Pay CGT?

Capital gains tax applies when you:

• Sell property or investments.
• Donate assets to family.
• Emigrate from South Africa.
• Exchange one asset for another.

Important 2025 Updates

The CGT rates and exemptions remain unchanged for 2025/2026, providing stability for property investors and homeowners planning major transactions.

Need help with property financing? Understanding CGT is crucial when buying investment property or upgrading your family home. Our experts can help you structure your property investments tax-efficiently while securing the best home loan rates.

Get prequalified to find out what you can afford. You can get pre-approved by contacting an expert at ooba Home Loans or by using our free, online pre-approval tool, the Bond Indicator.

This information is current as of June 2025. Always consult with a tax professional for advice specific to your situation.