Capital gains tax on death
2 points we are still verifying
- Confirm promulgation of the 2026 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (B34-2026) that enacts the new CGT exclusions. SARS already applies them from 1 March 2026.
- Deaths before 1 March 2026 (R300 000 exclusion, 2025/26 tax tables) are not calculated.
Your details
Estimated CGT in the final return
R42 632.00
After the R440 000 year-of-death exclusion; taxable gain R184 000
- Net capital gain
- R460 000.00
- Tax without the gains
- R13 959.62
- Tax with the gains
- R56 591.62
How we worked it out
- Gain on primary residenceR2 900 000.00
R3 800 000.00 market value − R900 000.00 base cost
- Less primary residence exclusion−R2 900 000.00
Up to R3 000 000.00 (para 45)
- Gain on other assetsR900 000.00
R1 600 000.00 − R700 000.00
- Aggregate capital gainR900 000.00
- Less year-of-death exclusion−R440 000.00
Up to R440 000.00 (para 5(2))
- Net capital gainR460 000.00
- Taxable capital gain (40%)R184 000.00
Inclusion rate for individuals (para 10)
- Tax on other income onlyR13 959.62
1 March to date of death (244 days); rebates of R18 440.38 after apportionment (s6(4))
- Tax including the capital gainR56 591.62
- Estimated CGTR42 632.00
- The CGT is a debt of the deceased: it is paid from the estate and is deducted when estate duty is worked out.
How the estimate works
- Each asset is treated as sold at market value on the date of death. The gain is market value minus base cost.
- Gains on assets left to a surviving spouse are rolled over, so they are left out.
- The first R3 000 000 of the gain on the primary residence is excluded.
- The remaining gains are added together and the R440 000 exclusion for the year of death is subtracted.
- 40% of what is left (the taxable capital gain) is added to the deceased's other taxable income for the period.
- The CGT is the extra income tax that this causes, using the 2026/27 tax tables. Rebates are reduced in proportion to the days from 1 March to the date of death (section 6(4)).
The CGT is a debt of the estate. It reduces the net estate for estate duty, and the executor pays it from the estate before distribution.
For the deceased's other income, the RandRight income tax calculators use the same 2026/27 tables.
Frequently asked questions
Why is there capital gains tax when someone dies?
The Income Tax Act treats a person as having disposed of their assets at market value on the date of death (section 9HA). Any capital gain is included in their final income tax return, which covers 1 March to the date of death.
What is the exclusion in the year of death?
For deaths from 1 March 2026 the annual exclusion in the year of death is R440 000, instead of the normal R50 000. Before 1 March 2026 it was R300 000. The primary residence exclusion is R3 000 000 of the gain on the main home.
Is there CGT on assets left to a spouse?
No CGT arises on death for assets that go to a surviving spouse who is a South African resident. The spouse takes over the deceased's base cost, so the gain is taxed only when the spouse later sells or dies (paragraph 67 of the Eighth Schedule).
Which assets are excluded?
Cash and bank balances have no gain. Retirement fund benefits and most life policies are excluded from CGT. Personal-use items such as furniture and a private car are also excluded. Include shares, unit trusts, second homes, business interests and the like.
Can I use RandRight for other tax questions?
Yes. RandRight, our sister site in the KayaWise family, has calculators for salary tax, retirement lump sums and transfer duty for the same tax year.