Capital Gains Tax Calculator (Canada, 2026)

See what you keep after tax when you sell investments, a rental, a former home or a foreign asset. It works out the gain, applies your losses and the principal residence exemption, and taxes half of what is left under 2026 rules. Rental depreciation recapture is shown too.

The sale
$
$
Purchase price plus commissions, improvements and reinvested distributions
$
Commission, legal fees
You
$
More options
You
$
This year's losses plus net capital losses carried forward from earlier returns
Do you get OAS?
You keep, after tax$142,352The sale gives a $50,000 gain. Half of the $50,000 net gain, $25,000, is added to your income as a taxable capital gain. That costs about $7,648 in tax in Ontario, or 15.3% of the gain.
Cost base $100,000Tax $7,648Gain you keep $42,352
Sale price$150,000.00
Cost base− $100,000.00
Capital gain$50,000.00
Taxable capital gain (50% inclusion)$25,000.00
Tax on the gain (30.6% marginal rate on the taxable half)$7,647.54
Total tax from the sale$7,647.54
Tax if you split the sale over two years$7,412.50
2026 facts. The inclusion rate is 50%. The proposed increase to two-thirds was cancelled in 2025. Losses offset gains only (back 3 years, forward with no time limit). A home sold within 12 months of buying is usually taxed as business income (100%) under the flipping rule. Your principal residence is exempt for the years you designate plus one. The lifetime exemption on qualified small business, farm and fishing property is $1,275,000. Splitting the sale over two years would save about $235.
Show the math

Gain = sale price − adjusted cost base − selling costs. Principal residence exemption = gain × (1 + years designated) ÷ years owned. Losses and the lifetime exemption reduce the gain before the 50% inclusion rate is applied. The taxable half is added to your $85,000 of income and taxed at 2026 Ontario brackets. The tax shown is the difference with and without the gain. Recapture is the lesser of the CCA you claimed and the sale price above the written-down value, taxed as ordinary income. Not modelled: alternative minimum tax, the superficial loss rule, and reserves when you are paid over several years.

How this calculator works

  1. Gain = sale price − adjusted cost base − selling costs. The cost base is what you paid plus capital improvements and purchase costs.
  2. Exemptions: the principal residence exemption removes gain × (1 + years designated) ÷ years owned. The lifetime exemption removes up to $1,275,000 on qualified small business shares or farm property.
  3. Taxable gain = 50% of what is left.
  4. Tax = tax on your other income plus the taxable gain, minus tax on your other income alone, with the 2026 federal and provincial brackets. This catches the higher brackets a large gain pushes you into.

Worked examples in Ontario with $90,000 of other income

LineRental sold for $500,000 (cost $300,000, costs $25,000)Cottage sold for $900,000, designated 5 of 20 years
Capital gain$175,000.00$370,000.00
Principal residence exemption—− $111,000.00
Taxable capital gain (50%)$87,500.00$129,500.00
Tax$35,226.09$55,480.24
Effective rate on the gain20.1%21.4%

Assumptions

  • One person realizes the gain in one tax year. Splitting a sale over years or between spouses can lower the tax.
  • Alternative minimum tax, the OAS clawback and benefit reductions caused by the gain are not included.
  • Depreciation recapture on a rental (CCA claimed) is added to your income and fully taxable.

How to report the sale

Gains go on Schedule 3 of your return. A home sale must be reported even when it is fully exempt.

  1. Schedule 3, capital gains or losses ↗
  2. Form T2091, principal residence designation ↗
  3. Paying your income tax by instalments ↗
Common questions

Frequently asked questions

How much tax do I pay on capital gains in Canada?
Half the gain is added to your income and taxed at your marginal rate. So the effective rate on the whole gain is about 10% at low incomes and 25% to 27% in the top bracket, depending on the province. There is no separate capital gains rate.
Did the capital gains inclusion rate go up to two-thirds?
No. The increase proposed in Budget 2024 was deferred in January 2025 and cancelled in March 2025. It never took effect. The rate is still 50% for 2026.
How does the principal residence exemption work?
The exempt part is the gain × (1 + years designated as your principal residence) ÷ years owned. A home designated for every year you owned it is fully exempt. If you also own a cottage, a family can designate only one property per year. Give the years to the property with the bigger gain per year.
What is the lifetime capital gains exemption for 2026?
$1,275,000 of gains on qualified small business corporation shares and qualified farm or fishing property, indexed each year. It does not apply to real estate, stocks or crypto.
Can I deduct losses?
Capital losses offset capital gains in the same year. Unused losses carry back three years or forward indefinitely, but only against capital gains. Your notice of assessment shows earlier unused losses. Losses on a principal residence or personal-use property are not deductible.
Is crypto a capital gain?
For most people, yes. Half the gain is taxable when you sell, trade one coin for another, or spend it. Frequent trading can be treated as business income, 100% taxable.
What about a property sold within a year?
The anti-flipping rule treats gains on residential property held less than 365 days as fully taxable business income. There are exceptions for death, divorce, job relocation and other life events.
What is CCA recapture on a rental property?
If you claimed capital cost allowance (depreciation) against rental income, selling for more than the depreciated value brings that CCA back. It is taxed in full as ordinary income, on top of the capital gain. On $30,000 of claimed CCA that can be $12,000 or more of extra tax.
How are US stocks or a foreign property taxed?
Convert the purchase to Canadian dollars at the rate on the day you bought, and the sale at the rate on the day you sold. The currency move is part of the gain. A US stock that went nowhere in US dollars still has a taxable gain if the loonie fell.

Tax-saving strategies that use this calculator

Sources

Sources

Every figure on this page comes from one of these primary sources. Data last verified .

  1. CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
  2. CRA – CPP contribution rates, maximums and exemptions
  3. CRA – Second additional CPP (CPP2) contribution rates and maximums
  4. ESDC – EI maternity and parental benefits: how much you could receive
  5. CRA – EI premium rates and maximums
  6. CRA – Indexation adjustment for personal income tax and benefit amounts
  7. Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
  8. Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
  9. CRA, Canadian income tax rates for individuals, current and previous years
  10. Government of Alberta, Personal income tax
  11. Government of British Columbia, Personal income tax rates (2026)
  12. Government of British Columbia, B.C. tax reduction credit
  13. Manitoba Finance, Personal income taxes
  14. CRA, T4032 Payroll Deductions Tables, New Brunswick (January 2026)
  15. Government of New Brunswick, Personal income tax
  16. Newfoundland and Labrador Department of Finance, Personal income tax
  17. Newfoundland and Labrador, Bill 16 (2026), An Act to Amend the Income Tax Act, 2000
  18. Nova Scotia Finance and Treasury Board, Personal income tax indexation update for 2026
  19. Nova Scotia Income Tax Act (consolidated), s. 35 low income tax reduction
  20. CRA, T4032 Payroll Deductions Tables, Northwest Territories (January 2026)
  21. Government of Nunavut, January 2026 Tax Rate Sheet
  22. CRA, T4032 Payroll Deductions Tables, Nunavut (January 2026)
  23. Ontario Ministry of Finance, Personal income tax rates and credits (2026 dataset)
  24. Prince Edward Island Income Tax Act (consolidated 2026)
  25. Revenu Québec, TP-1015.F-V (2026-01) Formulas to Calculate Source Deductions and Contributions
  26. Retraite Québec, Québec Pension Plan Figures 2026
  27. Gouvernement du Québec (Québec.ca), Taux de cotisations au Régime québécois d'assurance parentale (RQAP) — page updated 19 March 2026
  28. Ministère des Finances du Québec, Parameters of the Personal Income Tax System for 2026 (November 2025)
  29. Government of Saskatchewan, Personal income tax
  30. CRA, T4032 Payroll Deductions Tables, Yukon (January 2026)
  31. Prime Minister of Canada, Cancellation of the proposed capital gains tax increase (March 21, 2025)
  32. CRA, Income Tax Folio S1-F3-C2, Principal Residence
  33. CRA, Line 25400: Capital gains deduction
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Data verified for tax year 2026: Updated By Nishant Malik, founder of GlassLayer