A major tax break in the 2026 National Budget means South Africans selling their primary homes will now keep significantly more of their profit - a change that’s expected to influence both household finances and the broader property market.
Effective 1 March, the capital gains tax (CGT) exclusion on primary residences has jumped from R2 million to R3 million. Confirmed by SARS in its revised tax tables released on 26 February 2026, this is a major financial boost for ordinary homeowners, 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.”
Families, retirees, and long-term owners will all benefit, he continues, since the new R3 million exclusion will change the maths in their favour.
What sellers will be saving
1. A family home in a growth suburb:
Bought for R1.8m in 2012, sold in 2026 for R4.5m
Capital gain: R2.7m
Before: R700 000 taxable → ±R86 800 CGT
Now: R0 taxable → R0 CGT
“A family selling a home that’s increased modestly will now keep almost R90 000 more of their profit.”
2. A long-term owner in a high-value suburb:
Bought for R2.5m in 2005, sold in 2026 for R7.8m
Capital gain: R5.3m
Before: R3.3m taxable → ±R475 200 CGT
Now: R2.3m taxable → ±R331 200 CGT
“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:
Bought for R950 000 in 1998, sold in 2026 for R3.9m
Capital gain: R2.95m
Before: R950 000 taxable → ±R98 800 CGT
Now: R0 taxable → R0 CGT
“For retirees, that’s nearly R100 000 more of their equity preserved.”
Why this matters in 2026
Property values have increased steadily in the last few years, so many homeowners would previously have crossed the old R2 million threshold. Under the new R3 million exclusion, a far larger percentage of sellers will now fall comfortably within the tax-free band.
Stevens expects the tax relief to influence the market in four key ways:
- More movement: “Homeowners who delayed selling because of the tax impact are expected to re-enter the market.”
- Better net profits: “Sellers, especially in suburbs where values have risen, can plan their finances more confidently.”
- Stronger retirement outcomes: “Long-term owners will benefit hugely from the extra R1 million buffer.”
- Improved affordability for next steps: “Retaining more equity means more financial flexibility when buying again, relocating, or downsizing.”
For Stevens, this is the moment for sellers to recalculate their numbers. “The single biggest mistake sellers make is focusing only on the selling price. What matters most is the net number - what you walk away with after costs and tax. Under the new R3 million exclusion, that number has just improved for thousands of South Africans.”
He adds: “In a market where every rand counts, the Government’s CGT threshold increase is a welcome break that will give homeowners more breathing space and more options.”
