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Finance Minister Enoch Godongwana delivered a "good news" budget yesterday, providing significant financial breathing room for South African households. Highlighting the 2026 National Budget was a long-awaited adjustment to Capital Gains Tax (CGT) exclusions - specifically for homeowners.
In a move widely lauded by the real estate sector, the primary residence exclusion has been increased from R2 million to R3 million. This is the first time this threshold has been adjusted since 2012. The change means that when an individual sells their primary home, the first R3 million of the capital gain is now exempt from tax, reflecting more realistic current property values.
Key Capital Gains Tax (CGT) Changes at a Glance
The 2026 Budget adjusted several CGT thresholds to account for years of inflation:
The relief was made possible by a R21.3 billion revenue windfall, allowing the National Treasury to withdraw R20 billion in previously planned tax hikes. By increasing these thresholds, the government aims to support the residential property market and encourage personal savings.
"These exclusions have not been increased since 2012. This adjustment provides welcome relief for property owners and helps protect the investment value of the family home." - National Treasury 2026 Review.
Other notable mentions in the budget included the full adjustment of personal income tax brackets for inflation and an increase in the tax-free savings annual limit to R46,000.
Author: Property Engage
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