Capital Gains Tax Calculator

Canada's capital gains inclusion rate is 50%, meaning only half of your capital gain is added to your taxable income. The taxable portion is then taxed at your marginal federal and provincial rate. A proposed increase to 66.67% was cancelled by the federal government on 21 March 2025, so the 50% rate applies to all gains regardless of size.

Only 50% of your capital gain is taxable. This taxable half is added to your other income and taxed at your combined federal and provincial marginal rate. There is no separate capital gains tax and no holding-period discount — the same 50% inclusion applies whether you held the asset for one month or twenty years.

Because only half the gain is taxed, the effective rate is half your marginal rate. At the top combined Ontario rate of 53.53%, a capital gain is taxed at 26.76%. In lower brackets the effective rate falls well below 15%. There is no flat capital gains rate — it tracks your total income for the year.

Four steps. (1) Capital gain = proceeds − adjusted cost base − outlays and expenses. (2) Multiply the gain by the 50% inclusion rate to get the taxable capital gain. (3) Add that taxable half to your other income for the year. (4) Tax it at your combined federal and provincial marginal rate. Example: a $100,000 gain on top of $90,000 of income in Ontario for 2026 gives a $50,000 taxable gain and about $18,822 of extra tax — an effective 18.82% on the gain.

There is no fixed amount — it depends on your income and province. Half the gain is added to your income, so the effective rate is half your marginal rate. At the very top of the 2026 brackets that works out to 27.40% in Newfoundland and Labrador and 22.25% in Nunavut. Someone in a middle bracket typically pays somewhere between 12% and 22% of the gain. The calculator above works out the exact figure for your income, province and gain.

Canada has no separate capital gains rate for 2026. The inclusion rate is 50% — the same as 2025, because the proposed two-thirds inclusion rate was cancelled in March 2025 — and the taxable half is taxed at your ordinary marginal rate. The highest possible 2026 rate on a capital gain is 27.40% (Newfoundland and Labrador) and the lowest top-bracket rate is 22.25% (Nunavut). See the province table on this page for all 13.

No. Gains on the sale of your principal residence are fully exempt under the Principal Residence Exemption. You must still report the sale and designate the property as your principal residence on Schedule 3 and Form T2091 — required since 2016 even when the gain is fully exempt. Only one property per family unit can be designated for any given year.

The LCGE shelters up to ${lcgeCurrent} of capital gains (${RATE_YEAR}) on qualified small business corporation (QSBC) shares and qualified farm or fishing property. The limit rose to ${lcgePrior} on 25 June 2024, held there for ${lcgePriorYear}, and resumed indexation in ${RATE_YEAR}. Use the LCGE calculator to check eligibility and the remaining limit.

No. The June 2024 federal budget proposed raising the inclusion rate from 50% to 66.67% on individual gains above $250,000 (and on all corporate and most trust gains). The change was deferred in January 2025 and then cancelled on 21 March 2025. The inclusion rate remains 50% for all capital gains.

Capital gain = proceeds of disposition − adjusted cost base (ACB) − outlays and expenses. Proceeds are what you received on sale. ACB is your original cost plus acquisition costs (commissions, legal fees) and certain adjustments. Outlays include selling commissions and legal fees. For identical securities, the ACB is the average cost of all units you hold.

Allowable capital losses (50% of the loss) can only offset taxable capital gains, never ordinary income such as salary. Unused net capital losses can be carried back up to 3 years and carried forward indefinitely. Watch the superficial loss rule: if you repurchase the same security within 30 days, the loss is denied and added to the ACB of the repurchased shares.

Under s 54 ITA, a loss is "superficial" and denied if you (or an affiliated person, such as your spouse or your RRSP/TFSA) buy the identical property within 30 days before or after the sale and still hold it at the end of that window. The denied loss is added to the ACB of the repurchased property, so you recover it on the eventual sale. The tax-loss selling calculator models the 30-day window.

The CRA treats crypto as a commodity. Disposing of it — selling for dollars, trading one coin for another, or spending it — is normally a capital gains event taxed at the 50% inclusion rate. Frequent, business-like trading can instead be taxed as 100% business income. See the crypto tax calculator for transaction-level treatment.

Yes — emigrating triggers a "deemed disposition" of most property at fair market value, creating capital gains on accrued but unrealized appreciation (departure tax). Some assets, such as Canadian real estate, are excluded. The departure tax calculator estimates the bill and the security you can post to defer payment.

No. Canada does not use the US-style lower rate for a long holding period. The same 50% inclusion rate generally applies whether an investment was held for one month or many years. However, frequent or business-like trading can be treated as business income instead of a capital gain, and a residential property sold within 365 days may be caught by the flipped-property rule unless an exception applies.

Capital gain = sale proceeds − adjusted cost base − selling expenses. A rental or second property is not automatically covered by the principal residence exemption, so the taxable portion is generally 50% of the gain. A rental building can also trigger capital cost allowance recapture, which is separate from the capital gain. Use the rental income tax calculator for annual rental income and this calculator for the disposition.

Most inheritances are not reported as income by the beneficiary. The tax issue usually arises before distribution: the deceased is generally deemed to dispose of capital property at fair market value immediately before death, and gains are reported on the final return. A qualifying transfer to a Canadian-resident spouse or common-law partner may defer the gain. Use the deemed disposition calculator to model the property-level result.

The available rules depend on the asset and facts. Common lawful routes include tracking the full adjusted cost base and selling expenses, applying capital losses, claiming the principal residence exemption when the property qualifies, using the LCGE for qualifying business/farm/fishing property, donating qualifying publicly traded securities, or using an eligible capital gains reserve when proceeds are received over time. These are exemptions, deductions, offsets, or deferrals — not hiding a disposition or omitting income.