Capital Gains Tax Calculator
Calculate Canadian capital gains tax on stocks, mutual funds, and property. 50% inclusion rate applied to marginal tax bracket.
Transaction
Capital Gains Tax
Tax Owed
C$4,447
50% inclusion rate · effective 14.82%
Capital Gain
C$30,000
Taxable Portion (50%)
C$15,000
Net Proceeds
C$45,553
How Canada taxes capital gains
Canada uses an inclusion rate model: only a portion of your capital gain is added to taxable income. For 2026, the rate is 50% on the first $250,000 of gains per year (individuals). The government previously proposed a 66.67% rate on gains above $250k but deferred implementation — always check CRA for the current rule when filing.
ACB — Adjusted Cost Base
Your tax cost is the ACB, not just the purchase price. Include commissions, reinvested dividends, and past return-of-capital adjustments. For identical shares bought at different prices, use the weighted-average ACB.
Principal residence exemption
Gains on your primary home are fully tax-exempt if you lived there every year you owned it. Report the sale on Schedule 3 anyway — failing to file the designation can cost the exemption.
Capital losses
Losses offset gains in the same year. Unused losses carry back 3 years or forward indefinitely. Watch the superficial loss rule: you can't claim a loss if you (or an affiliated person) re-buy the same security within 30 days.
Frequently Asked Questions
Everything you need to know, in one place.
What is the capital gains inclusion rate in Canada for 2026?
50% for all individuals — the proposed hike to 66.67% above $250,000 of annual gains was deferred. Monitor budget announcements; this is politically volatile.
How is capital gains tax calculated?
Tax = 50% of your gain × your marginal tax rate. A $20,000 gain at a 43% marginal bracket = $20,000 × 50% × 43% = $4,300 tax. Gains from primary residence are fully exempt under the Principal Residence Exemption.
What is the Principal Residence Exemption (PRE)?
Gains on the sale of your primary home are 100% tax-free. Must have been your principal residence each year you owned it. Multiple homes? PRE can only be claimed on one home per family per year.
Can I use capital losses to reduce tax?
Yes — capital losses offset capital gains in the same year. Excess losses can be carried back 3 years or forward indefinitely. Watch out for the Superficial Loss rule: cannot repurchase the same security within 30 days.
How are crypto gains taxed in Canada?
CRA treats cryptocurrency as a commodity. Disposing (selling, trading crypto-to-crypto, or spending) triggers capital gains — 50% taxable at marginal rate. Frequent traders or miners may be classified as business income (100% taxable). Track the adjusted cost base (ACB) using the average-cost method across all wallets for the same coin. Gifts and donations of crypto are dispositions at FMV. CRA has exchange data-sharing agreements with Binance, Coinbase, and Canadian exchanges — full reporting is expected.
Is there a lifetime capital gains exemption?
Yes — the Lifetime Capital Gains Exemption (LCGE) shelters up to $1,016,836 (2026, indexed) of gains on dispositions of Qualified Small Business Corporation (QSBC) shares and qualified farm/fishing property. Must meet 24-month holding, asset-use, and ownership tests. Not available for general stock portfolios or real estate. Planning opportunity for owner-managers selling businesses — crystallization strategies can lock in the exemption before a sale by transferring to a holding company.
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