What is Capital gains tax (CGT)?
Tax on the gain made when you sell or otherwise dispose of an asset, collected as part of income tax rather than as a separate tax.
CGT applies to individuals, trusts and companies when they dispose of assets such as property, shares or a business. Only part of the net gain is included in taxable income, so the effective rate is lower than on ordinary income: SARS gives maximum effective rates of 18% for individuals and 21.6% for companies.
Individuals get an annual exclusion, and there are exclusions for a primary residence and for small business owners aged 55 or older who sell their business. Budget 2026 raised several of these from 2 March 2026, including the annual exclusion to R50,000 and the primary residence exclusion to R3 million. You declare gains on your ITR12 or ITR14.
Need help with this?
Capital gains tax calculator