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 | 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) | 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. Newco shares to the trust) | 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 7% + 1%) | 8% (from 1 Jun 2026) |
| Transfer duty | Acquiring property — sliding scale | 0% to R1.21m … 13% above R13.31m |
Last reviewed: 3 June 2026. A special trust is taxed on the individual sliding scale (CGT 18%), not the flat 45% / 36% that applies to an ordinary trust. 2026 Budget measures are subject to Parliament’s legislative process — confirm enactment before relying on them.
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. … an individual in the top tax bracket would pay CGT at an effective rate of 18% (45% × 40%); a company would pay CGT at an effective rate of 22,4% (28% × 80%); and a trust would pay CGT at an effective rate of 36% (45% × 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%). The trust rate (36%) and individual rate (18%) are unchanged.
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.
2026 Budget changes to watch
The 2026 Budget increased the donations-tax annual exemption to R150,000 (natural persons) and the casual-gift exemption to R20,000, and limited the inter-spousal exemption to a resident recipient spouse. These are Budget measures subject to Parliament’s legislative process — use R150,000 for current planning but confirm the exact wording in the 2026 Rates and Monetary Amounts Act before relying on it. The transfer-duty scale (0% to R1.21m; 13% above R13.31m) and the CGT rates above were unchanged.
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). The natural-person annual exemption is R150,000 (up from R100,000) and casual gifts R20,000 — announced in the 2026 Budget, subject to enactment. See donations and funding.
Repo + 1% = 8% from 1 June 2026 (repo 7%). It drives the section 7C deemed donation; re-check SARS Table 3 on each repo change.