The 2026 Budget Speech brought encouraging news for South African property owners. Government announced several Capital Gains Tax (CGT) changes affecting property, increasing key tax exemptions that could benefit homeowners when selling their property.
While tax matters can often seem complicated, these changes aim to increase the tax-free portion of certain capital gains, which may reduce the tax burden for many individuals and families who have invested in property.
For homeowners thinking about selling property in South Africa, these adjustments could make a meaningful difference to the net proceeds received from a property sale.
Primary Residence Exemption Increased
One of the most significant changes announced in the budget relates to the Primary Residence Exemption, which applies when you sell your main home.
Previously, homeowners could exclude the first R2 million of profit from Capital Gains Tax when selling their primary residence. From 1 March 2026, this exemption has increased to R3 million.
This means a larger portion of the profit made from selling your main home may now be tax-free, potentially reducing the amount of CGT payable when selling residential property.
For many homeowners, this is particularly helpful given the growth in property values over recent years.
Annual Capital Gains Exclusion Increased
Another adjustment announced in the budget is the increase in the annual Capital Gains Tax exclusion for individuals.
The exclusion has increased from R40 000 to R50 000 per year.
This means individuals can realize slightly higher capital gains during a tax year before CGT becomes applicable. While this applies to various types of assets, it may also be relevant for property investors and individuals selling investment property in South Africa.
Increased Exclusion for Deceased Estates
The budget also introduced relief for deceased estates. The Capital Gains Tax exclusion for deceased estates has increased from R300 000 to R440 000.
This change may reduce the tax burden when assets, including property, are transferred through an estate. For families navigating estate administration, this can provide some financial relief during a difficult time.
When Do These Property Tax Changes Apply?
The new Capital Gains Tax thresholds will apply to transactions and estates from 1 March 2026 onwards.
Property transfers registered after this date may benefit from the updated exclusions, depending on the specific circumstances of the sale.
What This Means for South African Homeowners
Although each property transaction is unique and tax outcomes depend on individual circumstances, the increased CGT exemptions are widely viewed as positive for homeowners and the property market.
In practical terms, the changes may mean:
• A larger tax-free portion when selling your primary residence
• Reduced tax exposure for some property sales
• Greater flexibility for homeowners who wish to upgrade, relocate, or downsize
• Improved outcomes when property forms part of a deceased estate
For many property owners, this could translate into keeping more of the proceeds when selling their home.
Curious About Your Property’s Value?
If you have been wondering what your property might sell for in today’s market, it may be worthwhile to obtain an updated valuation.
Property values change over time, and understanding your home's current market value can help you make informed decisions about selling, investing, or planning for the future.
If you would like a free, no-obligation property value assessment , feel free to get in touch. I would be happy to provide a professional assessment and discuss current market conditions, call me at
072 318 8033 or email me at
[email protected]
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Disclaimer: This article provides general information regarding Capital Gains Tax changes affecting property in South Africa. For specific tax advice, homeowners should consult a qualified tax practitioner or accountant.