Capital Gains Tax Calculator
What you'll actually owe when you sell stocks, funds or property in Canada — the 2026 50% inclusion rate applied to your province's brackets, stacked on top of your other income. Selling your home? It's exempt, and we'll say so.
Tax on this gain across Canada
Same gain, same other income — what each province and territory would charge.
How much of the gain you keep
Tax owed versus what stays in your pocket, out of the full capital gain.
How the taxable gain fills your brackets
Your taxable capital gain stacks on top of your other income. This is where each dollar of it lands.
| Income band | Rate | Gain in band | Tax |
|---|
How this is calculated
The 50% inclusion rate
In Canada only half of a capital gain is taxable. The taxable amount is gain × 50%, added to your income and taxed at your marginal rate. The proposed increase to a two-thirds (66.67%) inclusion rate was cancelled in March 2025, so the 50% rate continues for all individuals in 2026 (confirmed July 2026).
The capital gain
gain = proceeds − selling costs − ACB − capital improvements. Proceeds is the sale price; ACB (adjusted cost base) is what you originally paid plus purchase costs; selling costs are commissions and legal fees; capital improvements (renovations that add lasting value, not repairs) increase your ACB on property. Ordinary repairs and maintenance do not count.
The tax on the gain
We compute tax = T(other income + taxable gain) − T(other income), where T is your combined federal + provincial income tax including the basic personal amount credits, Ontario surtax and health premium, and the Quebec abatement where they apply. This captures the fact that a large gain can push you into higher brackets. The effective rate shown is that tax divided by the full gain (not the taxable half), so it never exceeds about half your top marginal rate.
Principal residence exemption
The sale of your principal residence is fully exempt for every year it was designated as such — the tax is $0. You still report the sale (Schedule 3 and Form T2091), but you owe nothing. Only one property per family unit can be the principal residence in a given year.
The property flipping rule
If you sold a residential property (or an assignment) you owned for less than 365 days, the profit is deemed business income — fully taxable (100%, not 50%) and the principal residence exemption is denied — unless a life-event exception applies (death, disability, birth, marriage breakdown, work relocation, insolvency, etc.). This rule applies to dispositions since January 1, 2023.
Superficial loss rule
If you realize a loss and buy back the same or identical property within 30 days before or after (by you or an affiliated person), the loss is denied and instead added to the ACB of the repurchased property.
Carrying losses
Net capital losses can be carried back 3 years or forward indefinitely, but only against capital gains — never against ordinary income (except a limited rule at death).
What this doesn't model
The lifetime capital gains exemption on qualified small-business shares or farm/fishing property, recapture of depreciation (CCA) on rental buildings, the change-in-use rules, foreign-property reporting, or the alternative minimum tax. Estimate your full-year tax with the income tax calculator, or model a rental sale end-to-end with the property investment calculator.