What is the capital gains inclusion rate in Canada?

For 2024, the inclusion rate for individuals is 50% for gains up to $250,000, meaning only half your capital gain is added to your taxable income. Gains above $250,000 in a single year are subject to a proposed 2/3 inclusion rate, though this change has faced legislative uncertainty — consult a tax adviser for gains above that threshold.

How is Canadian capital gains tax calculated?

Only the "taxable capital gain" (gain × inclusion rate) is added to your ordinary income and taxed. There is no separate CGT rate; the included gain is taxed at your marginal combined federal and provincial rate.

Does Canada have a lifetime capital gains exemption?

Yes. Qualifying small business corporation shares and farming/fishing property may qualify for the Lifetime Capital Gains Exemption (LCGE) — $1,016,602 in 2024. This calculator does not apply the LCGE; subtract any exempt gain before entering your figure.

Are principal residence gains taxable?

Gains on your principal residence are generally fully exempt from Canadian tax under the Principal Residence Exemption. Do not include those gains in this calculator.

What is the basic personal amount?

The federal basic personal amount for 2024 is $15,705. Each province also has its own basic personal amount. This calculator automatically accounts for these amounts when determining the first dollar of taxable income.

Can capital losses reduce my tax?

Yes. Net capital losses from the current year, or carried forward from prior years, reduce your taxable capital gain. Deduct any loss carryforwards from your gross gain before entering the figure here.

Canada Capital Gains Tax Calculator

Name: Canada Capital Gains Tax Calculator
Availability: InStock
Author: Nham Vu

Enter your province, capital gain, and other income to instantly calculate your Canadian federal and provincial capital gains tax.

Your Details

Province / Territory

Capital Gain (profit before tax)

Other Net Income (before this gain)

Employment, self-employment, pension, RRSP withdrawals, etc.

Inclusion Rate

The 2/3 rate is proposed for gains above $250,000 — verify current legislation with a tax adviser.

Fill in your details and click Calculate Tax

Summary

Enter your province, capital gain, and other income to instantly calculate your Canadian federal and provincial capital gains tax.

How it works

Select your province or territory of residence.
Enter your total capital gain — the profit from selling the asset.
Enter your other net income for the year (employment, business, pension, etc.) before this gain.
The calculator applies the inclusion rate to get the taxable capital gain.
The taxable gain is added to your other income and taxed at the applicable federal and provincial marginal rates.
Your total tax owed, effective rate on the gain, and net gain after tax are displayed.

Use cases

Estimate tax before selling investment property or a rental unit.
Calculate the tax cost of selling stocks or mutual funds held outside a registered account.
Plan asset disposals to stay in a lower marginal bracket.
Compare the tax impact of realizing a gain in one year versus the next.
Understand how a large capital gain affects your marginal tax rate.
Model the after-tax proceeds from selling a business or farm property.
Determine whether a capital loss carryforward materially reduces your tax bill.
Estimate tax when relocating between provinces with different rates.

Frequently Asked Questions

Last updated: 2026-06-25 · Reviewed by Nham Vu