The 2026 rates table
These are the rates referenced throughout the trusts hub. They are South African and time-sensitive; cite the “Last reviewed” date when quoting them.
| Tax | Applies to | Rate (2026) |
|---|---|---|
| Income tax — trust | Taxable income retained in an ordinary trust | 45% (flat) |
| Income tax — company | Newco's rental / trading profit | 27% |
| Income tax — individual | Income vested in a resident beneficiary | Up to 45% (sliding scale) |
| CGT — trust | Gain retained in an ordinary trust (80% inclusion) | 36% effective |
| CGT — company | Gain in a company (80% inclusion) | 21.6% effective |
| CGT — individual / special trust | Gain in a person / special trust (40% inclusion, on the sliding scale) | Up to 18% effective |
| Dividends tax | Company pays a dividend upward | 20% |
| Donations tax | Gifts / s 7C deemed donations (25% over R30m cumulative) | 20% |
| Estate duty | Dutiable estate on death (25% over R30m) | 20% |
| Securities transfer tax | Transfer of shares — e.g. shares in a trading company that is not a residential property company. Exempt under s 8(1)(n) of the STT Act where the unlisted security is an acquisition of “property” subject to transfer duty (or a supply subject to VAT) — as it is when Newco is a residential property company and the trust buys its shares | 0.25% |
| VAT | Standard-rated supplies (e.g. commercial property by a vendor) | 15% |
| Official rate of interest | s 7C deemed donation on low/no-interest loans (repo + 1%; 7.75% 1 Dec 2025–31 May 2026; 8% 1 Jun–30 Sep 2026) | 8.25% (from 1 Oct 2026) |
| Transfer duty | Acquiring property — sliding scale | 0% to R1.21m … 13% above R13.31m |
Last reviewed: 29 September 2026. A special trust is taxed on the individual sliding scale (CGT up to 18%), not the flat 45% / 36% that applies to an ordinary trust; the 18% and 45% figures are maximum rates, not flat rates on every rand. 2026 Budget monetary measures are shown as SARS publishes them — see the legislative-status list below and confirm enactment before relying on them.
2026/27 individual tables, exclusions and abatement
Individuals and special trusts are taxed on a sliding scale, not the flat 45% an ordinary trust pays. This is the scale a beneficiary pays at when trust income is vested in them instead of being kept in the trust. The figures below are for the 2026/27 tax year (1 March 2026 – 28 February 2027), as the Budget 2026 Tax Guide sets them out.
Status: the 2026/27 tax table and rebates (clauses 1 and 3 — the tax thresholds follow from the rebates) and the R50 000, R440 000, R3 million and R2.7 million / R15 million CGT exclusions (clauses 15 to 17) come from the 2026 Draft Rates Bill, deemed effective 1 March 2026. SARS publishes and applies them, but the Bill had not been promulgated as at 29 September 2026 — we have not located the promulgated amendment. The interest exemptions and the estate-duty abatement are not changed by the draft Bill.
| Taxable income (R) | Rate of tax (2026/27) |
|---|---|
| 1 – 245 100 | 18% of taxable income |
| 245 101 – 383 100 | R44 118 + 26% of taxable income above 245 100 |
| 383 101 – 530 200 | R79 998 + 31% of taxable income above 383 100 |
| 530 201 – 695 800 | R125 599 + 36% of taxable income above 530 200 |
| 695 801 – 887 000 | R185 215 + 39% of taxable income above 695 800 |
| 887 001 – 1 878 600 | R259 783 + 41% of taxable income above 887 000 |
| 1 878 601 and above | R666 339 + 45% of taxable income above 1 878 600 |
| Age | Rebate | Tax threshold |
|---|---|---|
| Below 65 | Primary rebate R17 820 | R99 000 |
| 65 to below 75 | Plus secondary rebate R9 765 | R153 250 |
| 75 and above | Plus tertiary rebate R3 249 | R171 300 |
- Interest exemption — R23 800 a year of South African-source interest for a natural person under 65, and R34 500 for a person aged 65 or older. Not changed by the draft Bill.
- CGT annual exclusion R50 000 (individuals and special trusts) — SARS-published, from clause 15 of the 2026 Draft Rates Bill; promulgated amendment not located. The enacted figure the clause replaces is R40 000.
- CGT exclusion in the year of death R440 000 — SARS-published, from clause 15 of the 2026 Draft Rates Bill; promulgated amendment not located (enacted figure R300 000).
- Primary-residence exclusion R3 million — SARS-published, from clause 16 of the 2026 Draft Rates Bill; promulgated amendment not located (enacted figure R2 million).
- Small-business exclusion R2.7 million — for individuals aged at least 55 who dispose of a small business with a market value not exceeding R15 million. SARS-published, from clause 17 of the 2026 Draft Rates Bill; promulgated amendment not located (enacted figures R1.8 million and R10 million).
- Estate duty — 20% on the first R30 million of the dutiable estate and 25% above, after a basic deduction (the abatement) of R3.5 million. Not changed by the draft Bill.
An exemption from income tax applies to interest from a South African source, earned by any natural person under 65 years of age or by an estate of a deceased person, up to R23 800 per annum. For persons who are 65 years and older, this exemption applies to interest of up to R34 500 per annum. … Estate duty is levied on the property of residents and the South African property of non-residents, less allowable deductions. The duty is levied on the dutiable value of an estate, at a rate of 20% on the first R30 million, and at a rate of 25% above R30 million. A basic deduction of R3.5 million is allowed in determining an estate’s liability for estate duty, …
Note — Neither figure is changed by the 2026 Draft Rates Bill. The tax tables, rebates and CGT exclusions above come from the same Tax Guide but depend on the draft Bill, so treat them as SARS-published rather than enacted until the promulgated amendment is located.
Capital gains tax (the 36% point)
The single most-misstated trust figure is the CGT rate. The effective rate is the inclusion rate multiplied by the income-tax rate. SARS sets it out plainly:
The effective CGT rate on a capital gain (ignoring exclusions) is determined by multiplying the inclusion rate by the statutory rate. For the 2018 to 2020 years of assessment
— an individual in the top tax bracket would pay CGT at an effective rate of 18% (45% × 40%) (2017: 16,4% (41% × 40%);
— a company would pay CGT at an effective rate of 22,4% (28% × 80%) (2017: 22,4%);and
— a trust would pay CGT at an effective rate of 36% (45% × 80%) (2017: 32,8% (41% × 80%).
Note — The Guide’s 22,4% company figure (28% × 80%) predates the 2023 reduction of the company income-tax rate to 27% — the current company effective CGT rate is 21.6% (27% × 80%), as the live SARS rate table below confirms. The trust rate (36%) and individual rate (18%) are unchanged. SARS uses a comma decimal separator, and the unclosed brackets are reproduced exactly as printed in the Guide.
The 22,4% company figure above is the one figure that has dated — the Guide predates the 2023 cut of the company rate to 27%. SARS’s live rate table carries the current numbers (and confirms the trust and individual rates are unchanged):
25 February 2026 – No changes in percentages but changes to exclusions (see in bold below): Type 2027 2026 2025 2024 2023 2022 Individuals and Special Trusts 18% 18% 18% 18% 18% 18% Companies 21.6% 21.6% 21.6% 21.6% 21.6% 22.4% Other Trusts 36% 36% 36% 36% 36% 36% Events that trigger a disposal include a sale, donation, exchange, loss, death and emigration. The following are some of the specific exclusions: R3 000 000 gain or loss on the disposal of a primary residence; … Annual exclusion of R50 000 capital gain or capital loss is granted to individuals and special trusts; …
Note — The 25 February 2026 note records “no changes in percentages” for 2026/27 — only certain exclusions changed. The R3 000 000 primary-residence and R50 000 annual exclusions are SARS-published, from clauses 16 and 15 of the 2026 Draft Rates Bill (deemed effective 1 March 2026); promulgated amendment not located — the enacted figures they replace are R2 million and R40 000. The 40% (individuals / special trusts) and 80% (companies / other trusts) inclusion rates that produce these effective rates are not stated on this page; they live in the Eighth Schedule to the Income Tax Act 58 of 1962 (para 10).
So an ordinary trust’s effective CGT is 36% — twice an individual’s 18%. That gap is why the conduit principle matters so much, and why a company is sometimes preferred for an asset that will be sold at a gain.
The actual SARS words behind each headline rate
Each rate in the table above is stated here in SARS’s own words, so the figure can be cited rather than taken on trust. Plain-language summary first, then the verbatim extract.
Donations tax — 20%, rising to 25% above R30 million
A gift attracts donations tax at 20%; once your cumulative donations since 1 March 2018 pass R30 million, everything above that is taxed at 25%. The first R150 000 a natural person gives away each year is exempt. This is the rate that the section 7C deemed donation on a low- or interest-free loan to a trust is charged at.
From 1 March 2018, donations tax is levied at a rate of 20% on the aggregated value of property donated not exceeding R30 million, and at a rate of 25% on the value exceeding R30 million ( section 64(1) ). … where the donor has exceeded the R30 million threshold, all subsequent donations will be taxed at the rate of 25%. … The first R150 000 of property donated in each year of assessment by a natural person is exempt from donations tax (section 56(2)(b)).
The section 7C official rate of interest — 8.25% from 1 October 2026
The “official rate of interest” is the repo rate plus one percentage point. The Reserve Bank raised the repo rate to 7.25% with effect from 25 September 2026 (SAnews, 23 September 2026), so the official rate is 8.25% from 1 October 2026 (8% from 1 June to 30 September 2026; 7.75% from 1 December 2025 to 31 May 2026). It is the benchmark used to measure the interest shortfall on a low- or no-interest loan to a trust, which becomes a deemed donation — so re-check it on every repo change. SARS’s Table 3 (June 2026 issue) has not yet been reissued for the September change and still shows 8%.
The term “official rate of interest” is defined in section 1(1) of the Income Tax Act 58 of 1962 … 01.12.2025 | 31.05.2026 | 7.75% … 01.06.2026 | Until change in Repo* rate | 8.00% … Note: The official rate of interest is linked to the Repo rate plus one per cent. The official rate is applied from the first day of the month following the date on which that new Repo rate comes into operation.
Note — This is Table 3 as SARS last issued it (June 2026), when the repo rate had been raised to 7% effective 29 May 2026. The repo rate has since risen to 7.25% effective 25 September 2026, and the official rate is applied “from the first day of the month following” a repo change — so the 8% row runs to 30 September 2026 and the official rate is 8.25% from 1 October 2026. SARS had not reissued Table 3 as at 29 September 2026.
Dividends tax — 20%
When a company pays a dividend up to its shareholders, 20% is withheld and paid to SARS. A return of contributed tax capital is not a dividend, so no dividends tax is withheld — but it is not simply untaxed: it reduces the shareholder’s base cost in the shares, and any excess over base cost is a capital gain (paragraph 76B). Contributed tax capital is also not the same thing as the shares’ market value, the shareholder’s base cost, or a founder’s loan claim.
The rate of Dividends Tax increased from 15% to 20% for any dividend paid on or after 22 February 2017 (irrespective of declaration date), unless an exemption or reduced rate is applicable.
Transfer duty — the 2026/27 sliding scale (0% to 13%)
Acquiring property attracts transfer duty on a sliding scale: 0% on the first R1 210 000, rising to 13% on value above R13 310 000. The scale took effect on 1 April 2025 (enacted by section 1 of the Rates and Monetary Amounts and Amendment of Revenue Laws Act 3 of 2026) and is unchanged for the 2026/27 tax year.
Transfer duty is payable at the following rates on property transactions that are not subject to VAT. Value of Property (R) Rate 1 – 1 210 000 0% of the value 1 210 001 – 1 663 800 3% of the value above R1 210 000 1 663 801 – 2 329 300 R13 614 + 6% of the value above R1 663 800 2 329 301 – 2 994 800 R53 544 + 8% of the value above R2 329 300 2 994 801 – 13 310 000 R106 784 + 11% of the value above R2 994 800 13 310 001 and above R1 241 456 + 13% of the value exceeding R13 310 000
Note — The Budget 2026 Tax Guide’s wording and figures are reproduced exactly; the table is set out as “Value of Property (R)” against “Rate”, row by row. The scale applies from 1 April 2025 — section 1 of Act 3 of 2026 enacted it — and SARS’s transfer-duty rate table records “2027 (With effect from 1 April 2026) – No changes from last year.”
2026 Budget changes to watch
The 2026 Budget proposed increasing the donations-tax annual exemption to R150,000 (natural persons) and the casual-gift exemption to R20,000, and limiting the inter-spousal exemption to a resident recipient spouse. SARS publishes the new amounts as current; they sit in clause 9 of the 2026 Draft Rates Bill (25 February 2026), and we have not located the promulgated amendment. The resident-spouse limit is not in that clause: it is proposed in clause 17 of the 2026 Draft Taxation Laws Amendment Bill (29 July 2026). Use R150,000 for current planning but identify the enacted section and the tax period it applies to before relying on it as law. Not every Budget measure is implemented by the same Act, so each item below carries its own status:
- Percentages — 45% trust, 27% company, 40% / 80% inclusion, 20% dividends tax, 20% / 25% donations tax and estate duty, 0.25% STT, 15% VAT: in force, unchanged in the 2026 Budget.
- Donations-tax exemptions R150 000 / R20 000 — SARS-published; clause 9 of the 2026 Draft Rates Bill, deemed effective 1 March 2026; promulgated amendment not located.
- Resident-spouse limitation — clause 17 of the 2026 Draft Taxation Laws Amendment Bill (29 July 2026), which would add “if that spouse is a resident” to section 56(1)(a) and (b); deemed effective 25 February 2026 for donations on or after that date. Still a draft.
- CGT exclusions R50 000 (annual), R440 000 (year of death), R3 million (primary residence) and R2.7 million / R15 million (small business) — the amounts SARS publishes for the 2027 year of assessment on its CGT page (updated 26 February 2026), flagged there as Budget changes to exclusions. SARS-published, from clauses 15 to 17 of the 2026 Draft Rates Bill; promulgated amendment not located (enacted figures R40 000, R300 000, R2 million and R1.8 million / R10 million).
- Individual tax tables and rebates for 2026/27 — SARS-published, from clauses 1 and 3 of the 2026 Draft Rates Bill; promulgated amendment not located. See the 2026/27 tables above.
- Transfer-duty scale (0% to R1.21m; 13% above R13.31m) — in force since 1 April 2025 (section 1 of the Rates and Monetary Amounts and Amendment of Revenue Laws Act 3 of 2026) and unchanged for 2026/27.
- Official rate of interest 8.25% — from 1 October 2026 (8% from 1 June to 30 September 2026), following the repo increase to 7.25% effective 25 September 2026; SARS Table 3 (June 2026 issue) has not yet been reissued. It changes with the repo rate.
Donations tax is levied at a flat rate of 20% on the cumulative value of property donated since 1 March 2018, not exceeding R30 million; and at a rate of 25% on the cumulative value of property donated since 1 March 2018, exceeding R30 million. The first R150 000 of property donated during each tax year by a natural person is exempt from donations tax. In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts not exceeding R20 000 in total per tax year. Dispositions between spouses, where the recipient is a tax resident; donations between companies forming part of a South African group of companies; and donations to certain public benefit organisations are exempt from donations tax.
Note — The R150 000 / R20 000 exemptions are a Budget 2026 measure (announced 25 February 2026), carried in clause 9 of the 2026 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill. We have not located the promulgated amendment; confirm the enacted section before relying on the figures as law in force. The words “where the recipient is a tax resident” reflect a separate proposal — clause 17 of the 2026 Draft Taxation Laws Amendment Bill (29 July 2026), deemed effective 25 February 2026 — which is still a draft; under the Act as it stands, the spouse exemption in section 56(1)(a) and (b) has no residence condition.
Frequently asked questions
36% for an ordinary trust (80% inclusion × 45%). Not 18% — that is the top individual rate. A company is 21.6% (80% × 27%); a special trust is taxed like an individual (18% ceiling). See how trusts are taxed.
Donations tax is 20% (25% over R30m cumulative). SARS publishes the natural-person annual exemption as R150,000 (up from R100,000) and casual gifts as R20,000 — clause 9 of the 2026 Draft Rates Bill; promulgated amendment not located, so confirm enactment. The resident-spouse limit is a separate draft: clause 17 of the 2026 Draft Taxation Laws Amendment Bill (29 July 2026), deemed effective 25 February 2026. See donations and funding.
Repo + 1% = 8.25% from 1 October 2026 (repo 7.25% from 25 September 2026; 8% applied from 1 June to 30 September 2026). It drives the section 7C deemed donation. SARS Table 3 (June 2026 issue) has not yet been reissued and still shows 8%, so re-check it on each repo change.