Capital gains tax exclusion increased to R3 million: a financial boost for homeowners

Many homeowners would previously have crossed the old R2 million threshold due to the steady increase in property values over the last few years. The South African Revenue Services (SARS) revised tax tables released on February 26 spell a major financial boost for ordinaryhomeowners. Delivering the 2026 Budget last month, Finance Minister Enoch Godongwana said they were taking other measures to support small businesses: “We are raising the capital gains tax exemption for the sale of a small business for older persons from R1.8 million to R2.7 million.

“This applies to small businesses worth R15 million instead of the R10 million previously. It will enable small business owners to receive more tax relief when they sell their businesses.” The capital gains tax (CGT) exclusion on primary residences has jumped from R2 million to R3 million effective from the beginning of this month, says Paul Stevens, CEO of Just Property. “This is not R3 million of the selling price – it’s R3 million of the capital gain,” Stevens explains.

“For many sellers, that difference will translate directly into more money in their pockets.” He says families, retirees, and long-term owners will all benefit, since the new R3 million exclusion will change the maths in their favour. “A family selling a home that’s increased modestly will now keep almost R90 000 more of their profit.” “This translates to a saving of roughly R144 000, which is meaningful money in anyone’s book.” 3. A retiree downsizing after decades in the same home: