Capital gains tax calculator
Sold a stock, a rental, or a cottage? Only half your gain is taxable in Canada — this works out exactly what you'll owe at your income level and province, and what you actually keep.
Commissions, legal fees, transfer costs.
Determines the tax bracket your gain lands in.
Only half of a capital gain is taxable in Canada, so the effective rate on the gain is about half your marginal rate.
- Capital gain = proceeds − cost base − selling costs = $57,000
- Taxable capital gain = gain × 50% = $28,500
- That amount is added to your income and taxed at your marginal rate = $9,780
Estimate only. Excludes the principal residence exemption, the lifetime capital gains exemption on qualifying small business shares, capital losses carried forward, and gains sheltered inside registered accounts (TFSA, RRSP, FHSA).
Only 50% of a capital gain is taxable in Canada. That half is added to your income and taxed at your marginal rate — so the effective tax on the gain is about half your marginal rate.
Calculate by province
Frequently asked questions
How much tax do you pay on capital gains in Canada?
Only 50% of a capital gain is taxable. That taxable half is added to your income and taxed at your marginal rate, so the effective tax on the gain works out to roughly half your marginal rate — typically 12% to 27% depending on your income and province.
What is the capital gains inclusion rate?
The inclusion rate is the share of a gain that counts as taxable income. In Canada it is 50%. A proposed increase to two-thirds was announced in 2024 but was subsequently abandoned, so the long-standing 50% rate continues to apply.
Do I pay capital gains tax on my home?
Generally no. The principal residence exemption shelters the gain on the home you live in, for every year you designate it as your principal residence. Second properties, cottages, and rental properties are taxable, and you can only designate one property per family per year.
How do I reduce capital gains tax?
Hold investments inside a TFSA, RRSP or FHSA where gains aren't taxed at all; realize gains in a lower-income year; use capital losses to offset gains (they can be carried back three years or forward indefinitely); and make sure you include all costs — commissions, legal fees and improvements — in your cost base.
Researching and writing about Canadian taxes and investing since 2026.
“Capital Gains Tax Calculator (Canada) — VaultNerd” — VaultNerd, https://www.vaultnerd.com/tools/capital-gains-tax-calculator, updated August 2026.
- CRA — capital gains and the 50% inclusion rate
- CRA — principal residence exemption