What is the R40,000 annual CGT exclusion?

Every individual receives a R40,000 annual capital gains exclusion — the first R40,000 of net capital gains is tax-free each year. This exclusion cannot be carried forward or back; it resets annually. In the year of death, the exclusion increases to R300,000.

How is CGT different for a company compared to an individual?

Companies (including close corporations) face an 80% inclusion rate versus 40% for individuals, and pay income tax at the corporate rate of 27% rather than the marginal personal rate. The effective maximum CGT rate for a company is therefore 21.6% (80% × 27%), compared to 18% for an individual — making companies slightly less tax-efficient for capital gains.

SA CGT Calculator — Capital Gains Tax Estimator South Africa 2024/25

SA Capital Gains Tax Calculator · ZASouth African Tax

Example result based on the prefilled values.

Capital Gain

R700 000,00

Taxable Gain (after exclusion)

R660 000,00

Included Gain

R264 000,00

Estimated CGT

R118 800,00

Effective CGT Rate

17.00%

Continue your plan

Useful next calculations

Related to this calculation

Use the Capital Gains Tax Calculator (South Africa)

Continue with the related south african tax question this result raises.

Use the South African Income Tax Calculator

Continue with the related south african tax question this result raises.

When to use this calculator

Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
When you want to compare employed, self-employed, or dividend-based income scenarios.
When you need a simple take-home estimate before running payroll or filing returns.
When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

A realistic South Africa planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Sale Proceeds (R)

1500000

Base Cost / Purchase Price (R)

R0.30

Taxpayer Type

Individual

After entering these figures, review capital gain, taxable gain (after exclusion) and included gain together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Capital Gain

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Taxable Gain (after exclusion)

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Included Gain

Estimated CGT

Effective CGT Rate

Method & assumptionsAuthoritative sources

This calculator provides a simplified estimate of South African capital gains tax for the 2024/25 tax year. For individuals, the R40,000 annual exclusion is applied to the gross capital gain, and 40% of the remaining net gain is included in taxable income. This included gain is then taxed at the maximum marginal rate of 45% as a conservative approximation — your actual rate depends on your total taxable income including the capital gain. For companies, the 80% inclusion rate and 27% corporate tax rate apply. Actual CGT liability will differ if your marginal rate is lower than 45%, if you have capital losses to offset, if the primary residence or other exclusions apply, or if time-apportionment rules are relevant for assets acquired before 1 October 2001 (the CGT implementation date). Consult the existing SA Capital Gains Tax Calculator for a more detailed calculation that incorporates other taxable income and specific asset types.

Common mistakes

!Using an assumption that is not supported by a current local quote, bill, statement or official source.
!Treating a generic estimate as a lender, provider, payroll or tax authority decision.
!Mixing monthly and annual inputs without converting them consistently.
!Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
!Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

Run a second scenario with a cautious assumption so you can see the downside clearly.
Compare the result with the related calculators below before making a decision.
Check current local rules, eligibility and provider terms before applying or committing money.
Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

For individuals, 40% of the net capital gain (after the R40,000 annual exclusion) is added to taxable income and taxed at your marginal income tax rate. The maximum effective CGT rate for an individual is 18% (40% × 45% top marginal rate). This calculator uses the top rate as a conservative estimate for large gains.

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