Capital Gains Tax
Calculator Canada
Enter what you sold, what you paid and your other income. The calculator applies the 50% inclusion rate to your gain and works out the extra tax in your province, with options for your home and for qualified small business shares.
Your sale
Your capital gains tax
Estimates use 2026 federal and provincial rates and the extra tax caused by the gain on top of the income you enter. They do not include Alternative Minimum Tax, foreign tax, or the special rules for business property or Quebec. Not tax advice. Terms →
Tax on this gain in each province
The same sale and income in every province and territory, sorted from the lowest tax. Your province is highlighted.
| Province | Tax on the gain | Share of the gain |
|---|
How capital gains are taxed in Canada
A capital gain is the difference between what you sold something for and what it cost you. Only half of the gain is added to your income, and that taxable half is taxed at your normal rates. Canada has no separate capital gains rate, so the tax depends on your total income for the year and your province.
The 50% inclusion rate in 2026
The inclusion rate is 50% on all capital gains, for individuals, corporations and trusts. In 2024 the federal government proposed raising it to two-thirds on gains above $250,000 a year, but it cancelled that proposal in March 2025. If you read older articles that mention 66.7%, they are out of date. This calculator uses 50% flat.
Worked example
Take someone in Ontario with $90,000 of other income who sells shares for $60,000 that cost $30,000. The gain is $30,000, and the taxable gain is $15,000. Added to $90,000 of income, that costs about $4,565 in extra tax, or 15.2% of the gain. The same sale in British Columbia with $150,000 of other income costs a different amount because the combined marginal rate is higher. The table above runs every province for your numbers.
Selling your home
If the property was your principal residence for every year you owned it, the gain is fully exempt, and you pay no tax. If it was your principal residence for only some of the years, the exempt portion is the gain multiplied by (1 + the years designated) divided by the years you owned it. The extra year in the formula is why a home owned for 10 years and designated for 9 can still be fully exempt. You must report the sale and the designation on Schedule 3 and Form T2091 for the year of sale.
Since 2023, a residential property you owned for less than 365 days is generally treated as business income rather than a capital gain, with exceptions for life events such as death, divorce, a new job or a serious illness. Ask a professional if you bought and sold within a year.
Lifetime capital gains exemption
Gains on qualified small business corporation shares, qualified farm property and qualified fishing property can be sheltered with the lifetime capital gains exemption. The limit for 2026 is $1,275,000. For a sale of $1,500,000 with a $100,000 cost and no earlier use of the exemption, the gain is $1,400,000, the exemption covers $1,275,000, and the remaining gain is taxed at the 50% inclusion rate. The business must meet the qualification tests, so confirm with an accountant before relying on it.
Capital losses
A capital loss can only be used against capital gains. You apply the same 50% to the loss, then you can carry it back three years or forward without a time limit. Losses on personal-use property, such as a car, are generally not deductible. A loss is also denied if you or an affiliated person buy the same property within 30 days before or after the sale (the superficial loss rule).
Large gains and Alternative Minimum Tax
The Alternative Minimum Tax counts 100% of a capital gain rather than 50%. It applies from 2024 under rules that raised the AMT rate to 20.5% and set the exemption at the start of the fourth federal bracket, about $181,440 in 2026. If your income plus a large gain gets near or above that line, your tax could be higher than shown here. The calculator displays a warning in that case but does not calculate AMT.
Registered accounts and other exceptions
Gains inside a TFSA, RRSP, FHSA or RESP are not taxed as capital gains. Gains in a non-registered account are reported on Schedule 3. Crypto is treated as property, so selling or trading it creates a capital gain or loss, unless you trade so often that the CRA treats it as business income.
Frequently asked questions
What is the capital gains inclusion rate in 2026?
50%. Half of a capital gain is added to your income. The proposed increase to two-thirds on gains above $250,000 was cancelled in March 2025.
How much tax will I pay on a $100,000 capital gain?
Half of the gain, $50,000, is added to your income and taxed at your marginal rates. The tax depends on your other income and province. Enter your numbers above for an estimate, or compare provinces in the table.
Do I pay capital gains tax when I sell my house?
Not if it was your principal residence for all the years you owned it and you report the sale and designation properly. If it was your principal residence for only part of the time, only part of the gain is exempt.
What is the lifetime capital gains exemption for 2026?
$1,275,000 for qualified small business corporation shares, qualified farm property and qualified fishing property. It applies per person over a lifetime, so earlier claims reduce what is left.
Can I use capital losses to reduce my tax?
Yes, against capital gains only. Losses can be carried back three years or forward indefinitely. Losses on personal-use property such as a car are generally not allowed.
Does this calculator include Alternative Minimum Tax?
No. It shows a warning when your income plus the gain is large enough that AMT may apply, but it does not calculate AMT. A tax professional can run the AMT comparison for you.
Is crypto taxed as a capital gain?
Usually yes. Crypto is treated as property. Selling it, trading it for another coin, or using it to buy something creates a gain or loss. If you trade frequently as a business, the CRA may tax it as business income instead.
When do I report capital gains?
On your tax return for the year you sold the asset, using Schedule 3. The tax return for 2026 is due April 30, 2027.