What is the CGT annual exclusion for natural persons in 2026/27?

For the 2027 year of assessment (2026/27), the CGT annual exclusion for a natural person is R50 000 of the sum of capital gains and capital losses for the year. It was R40 000 from 2017 to 2026; Budget 2026 made the first increase since 2017. Updated exclusions apply from 2 March 2026.

What is the primary residence CGT exclusion after Budget 2026?

From 2 March 2026, the primary residence exclusion is R3 000 000 of capital gain or capital loss on disposal of a qualifying primary residence (up from R2 000 000). Co-owners apportion; trade-use portions may be excluded from the relief. Confirm qualification against SARS rules.

What is the CGT exclusion in the year of death?

In the year of death, the CGT exclusion for a natural person increases to R440 000 for the 2027 year of assessment (up from R300 000).

What is the small-business CGT exclusion after Budget 2026?

Updated from 2 March 2026: individuals who are at least 55 years old may qualify for a small-business CGT exclusion of R2 700 000 when disposing of a small business with a market value not exceeding R15 000 000 (exclusion up from R1 800 000; market-value ceiling up from R10 000 000). Qualification depends on the detailed SARS rules.

Does property CGT arise on the sale agreement date or on Deeds Office transfer?

On the sale agreement date (watching suspensive conditions), not Deeds Office transfer. SARS Budget 2026 FAQ packaging: signing in February 2026 places the gain in the 2025/26 year of assessment even if transfer occurs later in 2026. The SARS ABC Guide times disposal under an agreement not subject to a suspensive condition to the date the agreement is concluded.

How do I estimate CGT from a capital gain?

Sum gains and losses for the year, subtract the annual exclusion (and apply any assessed capital loss brought forward), multiply the net capital gain by 40% inclusion, then tax that taxable capital gain at your marginal rate. Maximum effective CGT for individuals remains 18% (40% × 45%). Labelled illustration: R60 000 gain under R50 000 exclusion → R4 000 taxable → about R1 800 at 45% marginal. Use your real base cost; illustrations are not averages.

Does unused CGT annual exclusion carry forward like TFSA contribution limits?

No. Any unused balance of the CGT annual exclusion cannot be carried forward to a following year of assessment. Remaining TFSA contribution limits are a different rule set; TFSA growth is CGT-exempt inside the wrapper.

Can I rely on Reddit or social media for CGT amounts?

No. Use SARS and National Treasury primary sources for exclusion amounts, rates, and disposal timing. Forum threads are audience-demand evidence only and must never be cited as authority for CGT figures.

Is this the same as the TFSA or interest-exemption guides?

No. Those guides own wrapper contribution limits and interest exemption. This guide owns Budget 2026 CGT exclusions for taxable disposals, agreement-date property timing, and the gain-to-tax pipeline. TFSA growth is CGT-exempt inside the wrapper; that does not replace this checklist.

Guide

Budget 2026 CGT exclusions checklist: R50k annual, R3m primary residence, and the gain-to-tax pipeline

Budget 2026 raised South African CGT exclusions for natural persons. For the 2027 year of assessment (2026/27), use this verified checklist: annual exclusion R50 000 (up from R40 000, first increase since 2017), primary residence R3 000 000, death exclusion R440 000, and small-business exclusion R2.7 million when you qualify. Updated exclusions apply from 2 March 2026.

Property CGT lands on the sale agreement date (watch suspensive conditions), not Deeds Office transfer. Then run gain → annual exclusion → 40% inclusion → tax at your marginal rate (maximum effective CGT 18%). Unused annual exclusion does not carry forward. Labelled illustrations only; not tax advice.

First annual exclusion increase since 2017

DIY investors and homeowners heard that CGT exclusions changed in Budget 2026, then faced mixed social-media numbers for which exclusion applies, when a property sale lands in a tax year, and how much tax they might actually owe.

The natural-person annual exclusion was R40 000 for years of assessment 2017 to 2026. Budget 2026 increased it to R50 000: an extra R10 000 sheltered before inclusion. If a top-bracket individual fully uses that extra R10 000 at the 18% maximum effective rate, the illustrative tax difference is R1 800 (upper-bound only).

Live Libevyn TFSA, interest-exemption, and Section 11F guides own wrappers and deductions. This guide owns taxable disposal exclusions. Growth inside a TFSA is CGT-exempt; that is an adjacent wrapper, not a substitute for this checklist.

Budget 2026 exclusion checklist (natural persons)

SARS Budget 2026 FAQ states the updated CGT exclusions apply from 2 March 2026. This guide's primary checklist is for natural persons. Special-trust annual-exclusion packaging across SARS sources needs separate review before asserting a single special-trust figure here.

Exclusion	2026/27 amount	Notes
Annual (natural person)	R50 000	Of the sum of capital gains and losses for the year; first increase since 2017 (was R40 000)
Primary residence	R3 000 000	Of capital gain or loss on disposal of a qualifying primary residence (was R2 000 000)
Year of death	R440 000	Natural person exclusion in the year of death (was R300 000)
Small business	R2 700 000	Individuals at least 55 may qualify when disposing of a small business with market value not exceeding R15 000 000 (exclusion was R1.8m; MV ceiling was R10m)

Budget 2026 Tax Guide also lists further specific exclusions (for example most personal-use assets, retirement benefits, and payments under original long-term insurance policies). Qualification always depends on your facts and SARS rules.

Property CGT: agreement date, not Deeds Office transfer

Do not assume property CGT waits for Deeds Office transfer. For property, the SARS Budget 2026 FAQ states the CGT liability arises when the sale agreement is signed, not when transfer is registered. FAQ packaging example: signing in February 2026 places the gain in the 2025/26 year of assessment (ending 28 February 2026) even if transfer occurs later in 2026. Watch suspensive conditions. Other disposal events include sale, donation, exchange, loss, death, and emigration.

Unused annual exclusion does not carry forward

Any unused balance of the CGT annual exclusion cannot be carried forward to a following year of assessment. Unlike remaining TFSA contribution limits that persist within the lifetime ceiling, unused CGT annual exclusion is use-it-in-the-year. TFSA growth remains CGT-exempt inside the wrapper; that is a different rule set.

Gain → exclusion → 40% inclusion → tax at your marginal rate

Basic individual CGT pipeline (SARS ABC Guide): sum capital gains and losses for the year → subtract annual exclusion → apply assessed capital loss brought forward if any → multiply net capital gain by the 40% inclusion rate → include the taxable capital gain in taxable income and tax at the person's marginal rate. Maximum effective CGT for individuals remains 18% (0.40 × 0.45). Budget 2026 did not change those percentages.

Illustrative modelling only (not an audience average): proceeds R70 000 − base cost R10 000 = capital gain R60 000. Less annual exclusion R50 000 → R10 000 net. Taxable capital gain = 40% × R10 000 = R4 000. Indicative tax at 45% marginal ≈ R1 800; at 31% marginal ≈ R1 240. Under the prior R40 000 exclusion the same gain left R8 000 taxable and ≈ R3 600 at 45%.

Edge case (labelled): capital gain exactly R50 000 under the new annual exclusion → taxable capital gain R0 (before other income interactions). Under the prior R40 000 exclusion the same gain would have left R4 000 taxable.

Primary residence: R2m to R3m

From 2 March 2026, the primary residence exclusion is R3 000 000 (up from R2 000 000): an extra R1 000 000 disregarded where it qualifies. Upper-bound illustration at the 18% maximum effective rate: R180 000 tax difference only if a qualifying gain would otherwise have exceeded the old ceiling by at least R1m and the person is at that top effective rate. Co-owners apportion; trade-use portions may be excluded from the relief. Confirm qualification against SARS rules and your records.

Playbook: identify, time, then calculate

Identify the asset type and which specific exclusion might apply (annual, primary residence, death, small-business, or another specific exclusion).
Confirm the year of assessment via disposal timing (for property: sale agreement date, watching suspensive conditions).
Gather your real proceeds, base cost, and any assessed capital loss brought forward.
Run the pipeline: gain → applicable exclusions → 40% inclusion → tax at your marginal rate.
Remember unused annual exclusion does not carry forward. Use SARS/Treasury figures, not social-media folklore.

Frequently asked questions

What is the CGT annual exclusion for natural persons in 2026/27?: For the 2027 year of assessment (2026/27), the CGT annual exclusion for a natural person is R50 000 of the sum of capital gains and capital losses for the year. It was R40 000 from 2017 to 2026; Budget 2026 made the first increase since 2017. Updated exclusions apply from 2 March 2026.
What is the primary residence CGT exclusion after Budget 2026?: From 2 March 2026, the primary residence exclusion is R3 000 000 of capital gain or capital loss on disposal of a qualifying primary residence (up from R2 000 000). Co-owners apportion; trade-use portions may be excluded from the relief. Confirm qualification against SARS rules.
What is the CGT exclusion in the year of death?: In the year of death, the CGT exclusion for a natural person increases to R440 000 for the 2027 year of assessment (up from R300 000).
What is the small-business CGT exclusion after Budget 2026?: Updated from 2 March 2026: individuals who are at least 55 years old may qualify for a small-business CGT exclusion of R2 700 000 when disposing of a small business with a market value not exceeding R15 000 000 (exclusion up from R1 800 000; market-value ceiling up from R10 000 000). Qualification depends on the detailed SARS rules.
Does property CGT arise on the sale agreement date or on Deeds Office transfer?: On the sale agreement date (watching suspensive conditions), not Deeds Office transfer. SARS Budget 2026 FAQ packaging: signing in February 2026 places the gain in the 2025/26 year of assessment even if transfer occurs later in 2026. The SARS ABC Guide times disposal under an agreement not subject to a suspensive condition to the date the agreement is concluded.
How do I estimate CGT from a capital gain?: Sum gains and losses for the year, subtract the annual exclusion (and apply any assessed capital loss brought forward), multiply the net capital gain by 40% inclusion, then tax that taxable capital gain at your marginal rate. Maximum effective CGT for individuals remains 18% (40% × 45%). Labelled illustration: R60 000 gain under R50 000 exclusion → R4 000 taxable → about R1 800 at 45% marginal. Use your real base cost; illustrations are not averages.
Does unused CGT annual exclusion carry forward like TFSA contribution limits?: No. Any unused balance of the CGT annual exclusion cannot be carried forward to a following year of assessment. Remaining TFSA contribution limits are a different rule set; TFSA growth is CGT-exempt inside the wrapper.
Is the R50 000 annual exclusion the first increase since 2017?: Yes, according to the SARS Budget 2026 FAQ. The natural-person annual exclusion was R40 000 for years of assessment 2017 to 2026 and rises to R50 000 for 2027.
Can I rely on Reddit or social media for CGT amounts?: No. Use SARS and National Treasury primary sources for exclusion amounts, rates, and disposal timing. Forum threads are audience-demand evidence only and must never be cited as authority for CGT figures.
Is this the same as the TFSA or interest-exemption guides?: No. Those guides own wrapper contribution limits and interest exemption. This guide owns Budget 2026 CGT exclusions for taxable disposals, agreement-date property timing, and the gain-to-tax pipeline. TFSA growth is CGT-exempt inside the wrapper; that does not replace this checklist.

Related guides

Map disposals before you estimate the tax

Add accounts in Libevyn, place investment and property values next to the rest of your net worth so gains are visible, then apply the SARS Budget 2026 exclusions checklist and the inclusion-rate pipeline to your real base cost and year of assessment. 14-day free trial, no bank passwords. Planning information, not advice. Libevyn does not file SARS returns, calculate your official CGT assessment, or replace reading SARS guidance and your own base-cost records.

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Sources include the SARS Budget 2026 FAQ, SARS Annual Exclusion table, SARS CGT rates page (updated 26 Feb 2026), Budget 2026 Tax Guide, and SARS ABC of Capital Gains Tax for Individuals Issue 13 (pipeline, 40% inclusion mechanics, unused exclusion no carry-forward, agreement-date timing; rand amounts for 2026/27 taken from Budget 2026 sources). Verified 28 Sep 2026. Worked R60k / R50k examples and upper-bound tax differences (R1 800 on the extra R10k annual shelter; R180 000 on the extra R1m primary-residence shelter at 18%) are labelled planning illustrations, not forecasts or averages. Natural-person figures are primary; special-trust annual-exclusion packaging across SARS sources needs separate review. Not tax, legal, or financial advice. Libevyn is not an FSP. Confirm with SARS guidance, your records, and a registered tax practitioner before acting.