Tax · Canada
Capital Gains Tax Calculator Canada: tax by province.
Calculate Canadian capital gains tax on the sale of an investment. 50% inclusion rate, with principal residence exemption support.
Capital gains tax in Canada is half of your gain taxed at your marginal rate. This calculator works it out for your province. Enter the purchase price, sale price, any costs of acquisition and disposition, your other income and your province. It returns the capital gain, the taxable portion, and the tax owing at your marginal rate.
The rule it applies: only 50% of a capital gain is included in income. That taxable half is added to your other income and taxed at your marginal rate, so a capital gain is never taxed at a flat rate of its own.
Source: CRA — T4037 Capital Gains guide; CRA — Line 12700: Taxable capital gains · As of
Cite this page: TNAADO Tools, “Capital Gains Tax Calculator 2026”, https://tools.tnaado.ca/calculators/tax/capital-gains/
Inputs
Capital gains tax
Fill the form and press Calculate.
Adjusted cost base (ACB)
Your capital gain is what is left after subtracting your property's adjusted cost base (ACB) and any outlays and expenses of selling from the proceeds of disposition. The CRA gives the formula as: proceeds of disposition − (ACB + outlays and expenses) = capital gain. If you buy the same type of property in several lots, such as shares of one company or units of a mutual fund, the CRA says you must average the cost across the group to get the ACB (see CRA: Completing Schedule 3 and CRA: Calculating and reporting capital gains and losses).
Worked example: shares bought in two lots
This is an illustration with made-up prices, not a real trade. Purchase costs such as commissions are treated here as part of the cost of the shares.
| Step | Working | Result |
|---|---|---|
| Lot 1 cost | 100 shares × $50 + $10 commission | $5,010 |
| Lot 2 cost | 100 shares × $60 + $10 commission | $6,010 |
| Total ACB, 200 shares | $5,010 + $6,010 | $11,020 ($55.10 per share) |
| ACB of 150 shares sold | 150 × $55.10 | $8,265 |
| Proceeds | 150 shares × $70 | $10,500 |
| Selling commission | outlay and expense | $10 |
| Capital gain | $10,500 − $8,265 − $10 | $2,225 |
| Taxable capital gain (50%) | $2,225 × 50% | $1,112.50 |
To reproduce this in the calculator, enter sale proceeds of $10,500, an adjusted cost base of $8,265 and selling expenses of $10. The remaining 50 shares keep an ACB of $2,755. Special situations (foreign currency, superficial losses, stock splits, inherited or gifted property) change the ACB, so use your broker's records or a tax professional for those.
Current inclusion rate
As of 2026-09-30, the CRA's guidance on calculating and reporting capital gains and losses states that fifty percent of a capital gain is taxable, and this calculator uses 50% for every gain regardless of size.
How capital gains are taxed in Canada
Only 50% of a capital gain is taxable. The taxable portion is added to your other income and taxed at your marginal rate. Losses can offset gains in the current year, the past 3 years, or carry forward indefinitely.
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What a capital gain actually costs you
A capital gain has no tax rate of its own. Half of the gain is included in income, that taxable half is stacked on top of your employment and other income, and the whole lot is taxed at whatever marginal rate it lands in. So the "capital gains rate" people quote is really half of their marginal rate, and it moves as their income moves: the same $50,000 gain costs materially more in a year you also sold a business than in a year you did not.
The mistake people make. A two-thirds inclusion rate on gains above $250,000 was proposed in 2024, widely reported, and never enacted. A great many articles and calculators from that period were never corrected and still apply it. The inclusion rate is 50%. The other frequent error is assuming the principal residence exemption covers a cottage or a rental: it covers one property per family per year, and only for the years the property genuinely qualified.
Frequently asked questions
How much capital gains tax will I pay in Canada?
Half of the gain is taxable. Add that half to your other income for the year and it is taxed at your marginal rate, so your effective rate on the whole gain is roughly half your marginal rate.
On a $100,000 gain, $50,000 is added to income. Someone with a 43% marginal rate pays about $21,500, or roughly 21.5% of the full gain. This is why capital gains are usually the most lightly taxed form of investment income in Canada apart from eligible dividends at low incomes.
Did the capital gains inclusion rate change?
This calculator uses 50%, which is the rate in the CRA's current guidance (checked 2026-09-30). Some older articles and calculators describe a higher two-thirds rate on large gains; this one does not apply it. Confirm the rate on the CRA page linked above before filing or before a large disposition.
Do I pay capital gains tax when I sell my house?
Generally not, if it was your principal residence for every year you owned it. The principal residence exemption shelters the entire gain, though you must still report the disposition on your return.
The exemption covers only one property per family per year. A cottage, a rental, or a second home is fully taxable on the standard 50% inclusion basis, and a property that changed use partway through (a home that became a rental, for example) is exempt only for the years it genuinely qualified.
How do I calculate the adjusted cost base?
The adjusted cost base is what you paid plus the costs of acquiring and improving the asset. For a property that means the purchase price plus legal fees, land transfer tax, and capital improvements: a new roof or an addition, but not repainting or routine repairs.
Selling costs such as real estate commission and legal fees come off the proceeds rather than being added to the base. Both adjustments reduce the gain, and both need documentation, so keep the receipts for as long as you hold the asset.
How do I report capital gains on my tax return?
Report the disposition on Schedule 3, Capital Gains (or Losses), and carry the taxable capital gain to your income tax return. Your broker's T5008 slip lists proceeds for many sales, but you must still calculate and report the adjusted cost base yourself. See the CRA guidance linked above.
Can capital losses reduce my capital gains tax?
Yes. Allowable capital losses are first applied against taxable capital gains in the same year. Any unused net capital loss can be carried back up to three years or carried forward indefinitely against future taxable capital gains.
Disclaimer
Estimates for educational purposes only. Consult a tax professional for the lifetime capital gains exemption, business assets, and trust scenarios.