About the Canada Capital Gains Tax Calculator
This calculator estimates the income tax you will owe when you sell an investment at a profit in Canada — shares, ETFs, mutual funds, crypto, a cottage or a rental property. Enter the sale proceeds, your adjusted cost base (ACB), selling costs and your other taxable income for the year, and it works out the capital gain, the taxable half and the extra federal and provincial tax that half adds to your return.
Only 50% of a capital gain is included in income. The proposed increase of the inclusion rate to two-thirds was cancelled in 2025, so every gain realized in 2026 uses the one-half rate no matter its size. The taxable gain is stacked on top of your other income and taxed with the 2026 federal brackets (lowest rate 14%) and your province’s or territory’s 2026 brackets, after the basic personal amounts. Ontario includes the surtax and the Ontario Health Premium.
Use it to plan a sale, compare selling in December versus January, or see how much of a gain you keep. Quebec is not included because Quebec residents file a separate provincial return; the principal residence exemption, the lifetime capital gains exemption, the alternative minimum tax and the dividend and other credits are not modelled.
With the default inputs, the tax on the capital gain is $4,449.30. Change any value above to recalculate instantly.
How to use the canada capital gains tax calculator
- 1Choose the province or territory you live in on 31 December.
- 2Enter the sale proceeds, your adjusted cost base and any selling costs.
- 3Add capital losses you want to apply this year, if any.
- 4Enter your other taxable income for 2026.
- 5Read the tax on the gain, your marginal rate and what you keep after tax.
Formula and method
A capital gain is the proceeds of disposition minus the adjusted cost base and the costs of selling. Half of the net gain (after any capital losses you apply) is a taxable capital gain that is added to your income on line 12700. The tax is the difference between your total federal and provincial tax with and without that taxable gain, so the gain is taxed at your marginal rates — and may push part of it into a higher bracket.
Federal tax uses the 2026 brackets (14%, 20.5%, 26%, 29% and 33%) less the basic personal amount credit, which shrinks from $16,452 to $14,829 between $181,440 and $258,482 of income. Provincial tax uses each province’s 2026 brackets and basic personal amount at its lowest rate (Manitoba’s amount phases out between $200,000 and $400,000; Yukon follows the federal amount). Ontario adds the 20% and 36% surtax on basic Ontario tax above $5,818 and $7,446 plus the Ontario Health Premium. Other credits are ignored because they do not change with the gain.
- ACB
- Adjusted cost base: purchase price plus acquisition costs and adjustments
- Outlays
- Expenses of selling, such as commissions and legal fees
- 50%
- Capital gains inclusion rate
- Tax(x)
- Federal + provincial tax on taxable income x for 2026
Worked examples
$30,000 stock gain in Ontario on an $80,000 salary
Selling for $60,000 shares that cost $30,000 gives a $30,000 gain, of which $15,000 is taxable. On top of $80,000 of income it falls in the 20.5% federal bracket ($3,075) and Ontario’s 9.15% bracket ($1,372.50, plus $1.80 of surtax as basic Ontario tax just passes $5,818), for about $4,449 of tax — 14.8% of the gain.
Cottage sale in British Columbia at a high income
A $225,000 gain after $25,000 of selling costs adds $112,500 of taxable income to $120,000 of salary, crossing several federal and BC brackets and reducing the federal basic personal amount. Federal tax on the gain is about $30,932 and BC tax about $16,929, for $47,862 in total — roughly 21.3% of the gain.
Alberta investor using carried-forward losses
The $20,000 gain is reduced by $8,000 of capital losses to $12,000, so $6,000 is taxable. On $50,000 of income the taxable $6,000 stays below the $58,523 federal and $61,200 Alberta bracket limits, so it is taxed at 14% federal ($840) plus 8% Alberta ($480): $1,320, or 6.6% of the gain.
Frequently asked questions
What is the capital gains inclusion rate in Canada for 2026?+
It is 50%. Only half of a net capital gain is added to taxable income. The federal government cancelled the proposed increase to a two-thirds inclusion rate on gains above $250,000, so the one-half rate applies to all gains realized by individuals in 2026.
How much tax will I pay on a capital gain in Canada?+
Because only half the gain is taxed, the effective rate is half your marginal rate. For example, at a 43.41% combined marginal rate in Ontario the gain is taxed at about 21.7%. Low-income investors may pay little or nothing if the taxable gain stays within the basic personal amounts.
Is the sale of my home taxable?+
Not if it was your principal residence for every year you owned it — the principal residence exemption covers the whole gain, though you must still report the sale on Schedule 3. Homes sold within 365 days may be treated as business income under the residential property flipping rule.
How do capital losses work?+
Half of a capital loss is an allowable capital loss. It can only offset taxable capital gains, not other income. Unused net capital losses can be carried back three years or forward indefinitely. Enter the full loss here and the calculator halves it with the gain.
What is the lifetime capital gains exemption?+
Canadian residents selling qualified small business corporation shares or qualified farm or fishing property can shelter up to $1.25 million of capital gains with the lifetime capital gains exemption. This calculator does not apply it; the exemption can also trigger alternative minimum tax.
Is crypto taxed as a capital gain in Canada?+
Usually yes for investors: selling, trading or spending crypto is a disposition and half the gain is taxable. If you trade frequently as a business, the CRA may treat the profit as fully taxable business income instead.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.