Donations Tax Calculator South Africa 2026/2027

Reviewed & Verified
Written by the Independent Editorial Team · Reviewed & Verified by Solly Maanaso, CA(SA)

Calculate donations tax on a gift or donation, and check whether it qualifies for an exemption — using the current SARS rates and rules.

Step 1 — Is this donation exempt?
Step 2 — Enter the donation value
This donation is exempt from donations tax.
This donation may no longer qualify for the spousal exemption.
The 2026 Budget Review proposes limiting the previously unconditional spousal exemption to resident spouses, effective 25 February 2026. We recommend confirming current legislative status with a tax practitioner before relying on this exemption for a non-resident spouse.
Remaining annual exemption available R 0
Taxable portion of this donation R 0
Donations tax payable R 0
Effective rate on this donation 0.00%
The R30 million threshold is cumulative and lifetime, not annual. Once your total donations (after exemptions) exceed R30 million over your lifetime, all further donations are taxed at 25%, not just the portion above R30 million on any single donation.
Source: SARS — Donations Tax page; established Section 64(1) practice

This calculator provides an estimate only. The spousal exemption rules are subject to a 2026 legislative change still progressing through Parliament — confirm the current position with SARS or a registered tax practitioner before relying on this exemption for a significant donation. This is not tax advice.

Which donations are exempt from donations tax?

Completely exempt — no value limit:

Source: SARS — Donations Tax page (Section 56(1))

Important — the spousal exemption is being narrowed in 2026:

Historically, donations between spouses have been completely exempt from donations tax, regardless of either spouse's tax residency. In the 2026 Budget Review, National Treasury proposed limiting this exemption to donations made to a resident spouse, with an effective date of 25 February 2026.

Why the change: Treasury identified a tax-avoidance technique where couples deliberately staggered the timing of ceasing South African tax residency — transferring significant assets to a spouse who had already become non-resident, before the remaining spouse also ceased residency. This allowed the donation to qualify for the (then-unconditional) spousal exemption, while the donor's own subsequent residency change triggered a more favourable "exit tax" outcome under Section 9H than would otherwise have applied.

What this means in practice: If you are donating to a spouse who is not a South African tax resident, do not assume the donation is automatically exempt. Confirm the current legislative status — this proposal was still progressing through Parliament as of the most recent update to this page.

Source: National Treasury — 2026 Budget Review; reported via Polity.org.za and Cease Tax Residency (citing Treasury)

Annual exemption (separate from the above, value-limited):

Donor type Annual exemption
Natural person (individual) R150,000 per year of assessment
Company or trust R20,000 per year (casual gifts only)

Source: SARS — Donations Tax page (Section 56(2))

How the annual exemption works:
This is separate from the unconditional exemptions above. If you donate, for example, R200,000 to a friend in a year (and have made no other donations that year), the first R150,000 is exempt under the annual allowance, and donations tax applies only to the remaining R50,000.

How donations tax is calculated — worked examples

The rates:

Cumulative donations (lifetime, after exemptions) Rate
Up to R30,000,000 20%
Above R30,000,000 25% on the portion exceeding R30 million

Source: SARS — Donations Tax page; SARS — Clarification Note on Donations Tax

Worked example 1 — donation to a friend, within the annual exemption:
You donate R100,000 to a friend. You've made no other donations this tax year.
  • Falls entirely within your R150,000 annual exemption
  • Donations tax payable: R0
Worked example 2 — donation exceeding the annual exemption:
You donate R400,000 to an adult child as a deposit toward their first home. You've made no other donations this tax year.
  • Less: R150,000 annual exemption
  • Taxable amount: R400,000 − R150,000 = R250,000
  • Donations tax: 20% × R250,000 = R50,000
  • Effective rate on the total donation: R50,000 ÷ R400,000 = 12.5%
Worked example 3 — selling an asset below market value (a "deemed donation"):
You sell a property worth R2,500,000 to your daughter for R500,000.
  • Value of the deemed donation: R2,500,000 − R500,000 = R2,000,000
  • Less: R150,000 annual exemption (assuming this is your first donation that year)
  • Taxable amount: R2,000,000 − R150,000 = R1,850,000
  • Donations tax: 20% × R1,850,000 = R370,000
Source: SAIPA-CoTE (illustrative); SARS — Section 58 deemed donation principle
A reminder on cumulative tracking:
All three examples above assume no other donations were made in the relevant tax year. If you've already used some or all of your R150,000 (or R20,000) annual exemption on other donations, less remains available for a subsequent donation in the same year.

Who pays donations tax, and how

The donor is liable:
The person making the donation (the donor) is responsible for paying donations tax. If the donor doesn't pay within the required period, the donor and donee become jointly and severally liable — meaning SARS can pursue either party for the outstanding amount.
Source: SARS — Donations Tax page (Section 59)

Only residents are liable:
Donations tax applies only to South African tax residents (individuals, companies, or trusts). If you receive a donation from a non-resident — for example, a relative living and earning income abroad — no South African donations tax arises on that donation.
Source: SARS — Donations Tax page

How to declare and pay:

1
Complete the IT144 form (Declaration by donor/donee)
2
Submit it to your nearest SARS branch, together with proof of payment (or via the relevant email channel for Large Business or High Net Worth clients)
3
Pay via eFiling — donations tax can only be paid this way
4
Payment is due by the end of the month following the month in which the donation took effect

Source: SARS — Donations Tax page

What the recipient must do:
The donee pays no tax on a donation received, but must declare it on their own ITR12 as an "amount considered non-taxable" — this keeps SARS's record of your total income complete, even though the donation itself isn't taxed in your hands.

Full donations tax guide →

Frequently Asked Questions

20% on the value of property donated, up to a cumulative lifetime total of R30 million. Once a donor's cumulative donations (after exemptions) exceed R30 million, all further donations are taxed at 25%.
A natural person can donate up to R150,000 per year of assessment tax-free, under the annual exemption. Companies and trusts are limited to casual gifts not exceeding R20,000 per year. This is separate from the unconditional exemptions for donations to a spouse, an approved Public Benefit Organisation, or government.
Generally yes, but this is changing. Historically, spousal donations were completely exempt regardless of residency. The 2026 Budget Review proposed limiting this exemption to donations made to a resident spouse, effective 25 February 2026, to close a tax-avoidance loophole involving staggered emigration. If you are donating to a non-resident spouse, confirm the current legislative status before assuming the donation is exempt.
Donations to an approved Public Benefit Organisation (registered under Section 30 of the Income Tax Act) are completely exempt from donations tax. Separately, if you want to also claim an income tax deduction for the donation (not just avoid donations tax), Section 18A allows a deduction of up to 10% of your taxable income for donations to a Section 18A-approved PBO.
SARS treats this as a "deemed donation" under Section 58 — the difference between the asset's market value and the price actually paid is treated as a donation, and may attract donations tax (after applying your annual exemption), even though no cash gift changed hands directly.
The donor (the person giving the donation) is primarily liable for the tax. The donee (recipient) pays no tax on the donation itself, but must declare it on their ITR12 as non-taxable income. If the donor fails to pay within the required period, both the donor and donee become jointly and severally liable.

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Sources:

  1. SARS — Donations Tax — sars.gov.za/types-of-tax/donations-tax/ (rates; exemptions; IT144; payment process)
  2. SARS — Clarification Note on Donations Tax — sars.gov.za/media-release/clarification-note-on-donations-tax/ (rate structure; Section 18A deduction; gratuitous-disposal definition)
  3. SARS — GEN-DNT-01-G01 — Manage Donations Tax (External Guide) — sars.gov.za (Section 56(1) full exemption list; community of property treatment under Section 57A)
  4. National Treasury — 2026 Budget Review (spousal exemption narrowing, effective 25 February 2026, as reported via Polity.org.za and Cease Tax Residency)
  5. Income Tax Act 58 of 1962 — Sections 54–64 (donations tax); Section 58 (deemed donations); Section 9H (exit tax, related context)

Last reviewed: June 2026. Next review: after Budget Speech February 2027 — and immediately if the 2026 spousal exemption legislation is finalised or amended during the Parliamentary process.