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Will you owe capital gains tax?

Most people selling an ordinary family home in South Africa owe nothing at all. The R2 000 000 primary residence exclusion is large, and selling costs come off before the gain is even calculated. Here is where you stand.

Sale price

Selling costs

Commission including VAT, plus compliance certificatesWhat you paid for it

Transfer duty and costs you paid then

Capital improvements since

Additions and upgrades — not repairs or repaintingThis is my primary residenceThe first R2 000 000 of gain is excluded

Your marginal income tax rate

Estimated capital gains tax

R 0

Nothing owed on these figures

Proceeds after selling costs: R 2 350 000
Base cost: – R 1 460 000
Capital gain: R 890 000
Less primary residence exclusion: – R 890 000
Less annual exclusion: R 0
Included in taxable income at 40%: R 0

On these numbers you would owe no capital gains tax at all. That is the normal outcome for an ordinary family home — the R2 000 000 primary residence exclusion covers the great majority of sales in this area.

An estimate, not advice. Your actual liability depends on your full tax position for the year and on records only you and your accountant have.

Capital gains tax is not deducted at transfer — it lands on your next assessment, which is why it catches people. To see it next to everything else, use the full net proceeds calculator.