Capital Gains Tax Calculator

Capital Gains Tax (CGT) is not a separate tax but forms part of income tax. When you dispose of an asset (sell, donate, exchange, or lose it), the capital gain is partially included in your taxable income. The inclusion rate depends on whether you are an individual (40%), a company (80%), or a trust (80%).

Individuals receive an annual exclusion of R40,000 per tax year. This means the first R40,000 of net capital gains in a year is not subject to CGT. In the year of death, the exclusion increases to R300,000. Companies and trusts do not receive an annual exclusion.

When you sell your primary residence, the first R2 million of any capital gain or loss is excluded. This applies to individuals only and the property must have been your primary residence. If the proceeds exceed R2 million, the exclusion is still R2 million and CGT applies to the remainder of the gain.

The inclusion rate determines what portion of your capital gain is added to your taxable income. For individuals, 40% of the net gain is included. For companies and trusts, 80% is included. The included amount is then taxed at your marginal income tax rate (individuals) or the flat company rate of 27%.

Yes. Certain assets are excluded from CGT, including personal-use assets (furniture, clothing), retirement fund benefits, long-term insurance policy proceeds, and small business assets when the proceeds are R2 million or less on disposal of a business by an individual over 55 years old.