Canadian Capital Gains Tax Calculator
Calculate the tax on your 2026 capital gain using the 50% inclusion rate, with federal and provincial marginal-rate stacking.
How capital gains work in 2026
In Canada, 50% of your capital gain is taxable and added to your other income for the year. The taxable portion is taxed at your combined federal and provincial marginal rates. Note: the proposed 66.67% inclusion above $250,000 was cancelled by the Carney government in March 2025. The rate in effect is 50% for all gains.
Your transaction details
The amount you sold the property for, net of selling commissions if you list them separately below.
Original purchase price plus reinvested distributions, purchase commissions, and capital improvements.
Legal fees, real-estate commissions, transfer costs paid to dispose of the property.
Your taxable income BEFORE adding the capital gain. We stack the gain on top to apply the correct marginal rates.
Tax breakdown
2026 inclusion rate: 50%. The proposal to raise inclusion to 66.67% above $250,000 was cancelled by the Carney government in March 2025. The rule in effect this year remains 50% for all taxpayers regardless of gain size.
About Canadian capital gains tax
A capital gain occurs when you sell property for more than its adjusted cost base (ACB). In Canada, only 50% of the gain is taxable and is added to your income for the year. The taxable amount is then taxed at your marginal federal and provincial rates, just like incremental employment income. The higher your other income, the higher the marginal rate that applies to the taxable portion of the gain.
Your principal residence is fully exempt as long as you designate it as such for every year of ownership. Investments held in a TFSA, RRSP, FHSA, or RDSP are also sheltered: neither growth nor withdrawals trigger capital gains tax (RRSP and RRIF withdrawals are taxed as regular income, not capital gains). For qualified small business corporation shares, farm property, and fishing property, the Lifetime Capital Gains Exemption (LCGE) reaches $1,250,000 in 2026.
Keep accurate records of your ACB. For securities held in a non-registered account, you must track the original cost plus purchase commissions, reinvested dividends, and stock splits. For inherited or gifted property, ACB is generally the fair market value at the deemed disposition date. The superficial loss rule disallows claiming a loss if you (or an affiliated person) repurchase the same security within 30 days.
Crypto and capital gains
The CRA treats cryptocurrency as a commodity. Selling, trading for another crypto, or using crypto to purchase goods is a taxable disposition. If the activity resembles a trade or business (high frequency, speculative intent, expertise), the full profit may be taxed as business income, without the 50% inclusion rate. Keep a transaction log with dates, CAD values at the time of trade, and fees.
Related calculators
Explore these complementary tools to go further:
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- Estimate your federal and provincial income tax
- Calculate your TFSA contribution room and tax-free growth
- Estimate your RRSP tax refund and contribution room
- Calculate the cap rate (NOI / value) on a Canadian rental property with sensitivity analysis
- Calculate land transfer tax at closing for any province and city
- Estimate self-employment tax, double CPP, and quarterly instalments
Frequently Asked Questions
Last updated: July 2026
The capital gains inclusion rate for 2026 is 50%. Only half of your gain is taxable; the other half is tax-free. The proposed two-tier rate that would have increased inclusion to 66.67% on gains above $250,000 was cancelled by the Carney government in March 2025 before it ever took effect. The 50% rate applies to all gains, regardless of size, for individuals, corporations, and most trusts. There is no special threshold or surtax in the current rules.
Capital gain equals proceeds of disposition minus adjusted cost base (ACB) minus outlays and expenses. Multiply the gain by the 50% inclusion rate to get the taxable amount. The taxable amount is added to your other income for the year and taxed at your combined federal and provincial marginal rates. Because a large gain can push you into a higher tax bracket, this calculator correctly stacks the taxable portion on top of your other income rather than applying a single marginal rate. The result is more accurate than simple percentage estimates.
Reviewed by Alexandre Bernier, CFP®, CIM®
Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →