Canada Capital Gains Tax Calculator 2026
Free Canadian capital gains tax calculator. Calculate tax on investment sales with 50% inclusion rate, $250K threshold, principal residence exemption, and lifetime capital gains exemption.
Gross Capital Gain$75,000
Effective Inclusion Rate50.00%50% inclusion
Taxable Capital Gain$37,500
Combined Marginal Rate33.5%Federal 20.5% + ON 13.0%
Capital Gains Tax$12,562
Net Proceeds (after tax)$164,438
Calculation Breakdown
1. Gross Capital Gain: $180,000 (sale) - $100,000 (purchase) - $2,000 (costs) - $3,000 (costs) = $75,000
2. Inclusion: $75,000 × 50% = $37,500
6. Tax at Marginal Rate: $37,500 × 33.5% (fed 21% + ON 13%) = $12,562
7. Net Proceeds: $180,000 (sale) - $3,000 (costs) - $12,562 (tax) = $164,438
Tax vs Net Proceeds
Tax at Various Gain Levels
Important Notes
- Inclusion Rate: 50% on the first $250,000 of capital gains for individuals; 66.67% on the portion exceeding $250,000 (2024+ rules).
- Principal Residence: No tax on the sale of your primary residence. The exemption is available if the property was your principal residence for all years owned.
- LCGE: The Lifetime Capital Gains Exemption (up to $1,016,836 for 2026) applies only to qualified small business corporation shares and qualified farm or fishing property. Simplified as a checkbox here.
- Capital Losses: Allowable capital losses (50% × capital loss) can offset taxable capital gains in the current year. Net capital losses can be carried back 3 years or forward indefinitely.
- Superficial Loss Rule: Capital losses are denied if you or an affiliated person buys the same or identical property within 30 days before or after the sale.
- Provincial Rates: Simplified single representative rates used. Actual provincial rates are graduated with multiple brackets.
How Capital Gains Tax Works in Canada (2026)
In Canada, only 50% of your capital gain is included in taxable income — this is the inclusion rate. For gains exceeding $250,000 for individuals, the inclusion rate on the excess portion rises to 66.67% (new rules effective 2024+). The taxable capital gain is added to your other income and taxed at your combined federal + provincial marginal tax rate.
- 50% inclusion on capital gains up to $250,000
- 66.67% inclusion on the portion of gains over $250,000
- Principal residence exemption — no tax on sale of your primary home
- Lifetime Capital Gains Exemption (LCGE) — up to $1,016,836 (2026) for qualified small business shares and farm/fishing property
- Net capital losses can be carried back 3 years or forward indefinitely
- Federal brackets: 15% up to $57,375, 20.5% up to $114,750, 26% up to $177,882, 29% up to $253,414, 33% above $253,414