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Capital Gains Tax Calculator for Canada

See the tax on a capital gain in your province, using the 2026 federal and provincial brackets and the 50% inclusion rate. Last reviewed October 18, 2026.

Your gain and income

Enter the capital gain, your other taxable income and your province.

$0 $1,000,000
CAD
Estimated tax on your gain

What you keep after tax

Tax on the gain
$9,253
18.51% of the gain
After-tax gain
$40,747
of $50,000
Taxable capital gain (50% inclusion):$25,000
Tax rate on that taxable half:37.01%
Tax if the same amount were interest or salary:$20,105

Uses the CRA's 2026 federal and Ontario brackets. Credits, the alternative minimum tax and the lifetime capital gains exemption are not included. An estimate, not tax advice.

Capital gains inclusion rate Ten thousand dollars of interest is fully taxable, costing $18,505 at a 37.01 percent marginal rate. Ten thousand dollars of capital gain is only half taxable, costing $9,253, which is an effective rate of 18.5 percent. The same $50,000, taxed two ways (at a 37.01% marginal rate) Interest or salary fully taxable 100% taxable: $50,000 Tax $18,505 Capital gain only half is included 50% not taxed: $25,000 50% taxable: $25,000 Tax $9,253 Effective tax rate on a capital gain = marginal rate x 50% 37.01% x 50% = 18.5% on the gain, so a $1 loss saves half as much as a $1 of salary costs. Example at a 37.01% marginal rate. Your province and income change the rate (see Tax Rates).
The 50% capital gains inclusion rate. Only half of a capital gain is added to your taxable income, so the tax on a gain is half the tax on the same amount of interest or salary. The inclusion rate is 50% for 2026. A proposed increase to two-thirds was cancelled in March 2025.

How capital gains tax works in Canada

When you sell an investment for more than you paid (its adjusted cost base), the difference is a capital gain. Half of the gain is added to your taxable income for the year and taxed at your marginal rate. This calculator finds the real difference in federal and provincial tax with and without that taxable half, so a large gain that spills into higher brackets is taxed accordingly.

What this calculator assumes

  • The inclusion rate is 50% for individuals in 2026. A proposed increase to two-thirds was cancelled in March 2025.
  • Other taxable income is your income before this gain. Rates are the CRA's 2026 federal and provincial brackets, with the Ontario surtax and the Quebec abatement.
  • Not included: non-refundable credits, the alternative minimum tax, the lifetime capital gains exemption for qualified small business or farm shares, the principal residence exemption, and capital losses (use the tax-loss harvesting estimator for those).
  • Gains in an RRSP or TFSA are not taxed this way; this applies to non-registered accounts and other taxable dispositions.

Frequently asked questions

How much tax do I pay on a capital gain in Canada?

Half of the gain is added to your income and taxed at your marginal rate, so the effective rate on the gain is half of your marginal rate. At a 43.41% marginal rate that is about 21.7%. Enter your numbers above for your province.

What is the capital gains inclusion rate in 2026?

50% for individuals. The government cancelled the proposed increase to two-thirds in March 2025.

Do I pay capital gains tax when I sell my home?

Usually not on your principal residence, because of the principal residence exemption, as long as you designate it correctly. Rental and second properties are generally taxable.

Can losses reduce my capital gains tax?

Yes. Capital losses offset capital gains of the same year and can be carried back three years or forward indefinitely. See the tax-loss harvesting estimator.

Related

Educational estimates, not tax, legal or investment advice. Talk to a licensed Canadian CPA or CFP before acting.

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