Capital gains tax on shares: the new R50 000 exclusion and how to use it
From 1 March 2026 the first R50 000 of gains each tax year is tax-free - a R200 000 gain on a R500 000 income costs R20 090 sold at once, or R6 200 spread over three tax years.
In 30 seconds
- The annual exclusion rose from R40 000 to R50 000 for 2026/27 - the first increase since 2017.
- Only 40% of the rest is added to your income, so the most an individual pays is 18% of the gain.
- The exclusion resets every tax year and cannot be carried forward - spreading a large sale across years can cut the tax sharply.
How CGT on shares is worked out
- Gain = what you sold for, minus what you paid (including costs such as brokerage).
- Subtract the annual exclusion: R50 000 of your total gains and losses for the year (SARS Budget 2026 FAQ).
- Include 40% of what is left in your taxable income (SARS - Inclusion rate).
- It is taxed at your marginal rate, together with your salary. At the top 45% rate that is 18% of the gain; at 31% it is 12.4%.
On a R200 000 gain with R500 000 of other income: R150 000 after the exclusion, R60 000 included, which pushes you from the 31% into the 36% bracket - R20 090 in tax.
Ways to pay less, legally
- Spread the sale. Selling part in February and the rest in March uses two years' exclusions a month apart.
- Use your losses. Losses on other shares sold in the same year reduce your net gain; unused losses carry forward.
- Hold growth assets in a tax-free savings account: no CGT, no dividends tax, no tax on interest - within the R46 000 a year and R500 000 lifetime limits.
- Sell in a low-income year, such as a sabbatical or the first year of retirement, when your marginal rate is lower.
Shares held for at least three years are generally treated as capital, but frequent trading can make SARS treat the profit as income - taxed in full, with no exclusion. We have not linked a primary source for that rule here; see SARS's Tax guide for share owners.
Sources
- R50 000 annual exclusion (up from R40 000), 18% maximum effective rate, R440 000 exclusion in the year of death: SARS - Budget 2026 FAQ (checked 15 Oct 2026).
- 40% inclusion rate for individuals: SARS - Inclusion rate.
- TFSA limits R46 000 / R500 000; 2026/27 brackets: SARS - Budget 2026 FAQ; SARS - Rates of tax for individuals.
- Tax amounts: our own calculation, shown in the calculator above.
Education, not financial advice. This post explains how the rules and the arithmetic work. It does not recommend any financial product, and your own situation may differ - speak to a registered financial adviser or tax practitioner before you act. Figures were checked against the linked sources on the date above.