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Capital Gains Tax Calculator

Estimate the tax on a capital gain. In Canada, 50% of your gain is added to taxable income and taxed at your marginal rate (federal + provincial).

Inputs

CAD
CAD
The inclusion rate is 50% — only half the gain is taxable. The proposed increase to two-thirds was cancelled, so 50% applies to all gains. The taxable half is added to your income and taxed at your marginal rate plus provincial tax. Your principal residence is exempt; gains inside a TFSA or RRSP are not taxed. Capital losses offset gains.

Capital Gains Tax

Tax on the taxable half
$0

How capital gains work in Canada

Canada has no separate capital gains tax rate. Instead, a portion of your gain — the inclusion rate, currently 50% — is added to your taxable income and taxed at your marginal rate (federal plus provincial). So if you realise a $50,000 gain, $25,000 is added to your income; the tax depends on what bracket that lands in.

The federal government proposed raising the inclusion rate to two-thirds on gains over $250,000, but that change was cancelled, so 50% applies to everyone. Your principal residence is generally exempt, and gains earned inside a TFSA or RRSP are not taxed. Capital losses can be applied against gains in the year, carried back three years, or carried forward indefinitely.

FAQ

Is there a separate CGT rate?
No. Half your gain is added to income and taxed at your marginal rate — the rate depends on your total income and province.
Did the inclusion rate go up?
The proposed increase to two-thirds for gains over $250,000 was cancelled. The inclusion rate stays at 50% for all gains.
Is my home taxed?
Your principal residence is generally exempt from capital gains tax under the principal residence exemption.
What about TFSA/RRSP gains?
Gains realised inside a TFSA are completely tax-free; gains inside an RRSP are tax-deferred until withdrawal.