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ITA Section 54 Superficial Loss Guard

Free Canadian Tax-Loss Harvesting Estimator

Calculate your instant tax refund by harvesting capital losses, offset realized capital gains, and see how to choose a replacement investment while you wait out the 30 days.

CRA 30-Day Superficial Loss Rule: Do not buy back the same ETF, or another fund tracking the same index, within 30 days before or after selling at a loss. See how to choose a replacement below.

Gains, Losses & Tax Profile

Enter your realized gains and current unrealized positions to calculate tax savings.

$0 $200,000
$0 $200,000
CAD
Instant Tax Shield Results

Your Immediate Tax Refund & Carryover

Estimated Tax Saved This Year
$4,075 CAD
Worth 37.04% of the taxable half of the offset gains
Saving Reinvested for 10 Years
+$8,398 CAD
If the saving is reinvested at 7.5% a year (an assumption)
Losses Available to Harvest: $22,000 CAD
Net Taxable Capital Gains Remaining: $8,000 CAD
Paid spreadsheet · $19 CAD one-time

Check every sale against the 30-day rule.

The Tax-Loss Harvesting and Superficial Loss Tracker is a spreadsheet for $19 CAD.

Free sample (PDF) See the tracker and price

Estimate only, based on 2026 federal and provincial tax brackets. Not tax advice.

Capital gains inclusion A $10,000 gain is cut in half, so $5,000 is taxable. At a 37.04 percent marginal rate that is $1,852 of tax. A matching loss would save the same amount. A gain of $10,000 Not taxed: $5,000 Taxable: $5,000 × 37.04% marginal rate = Tax $1,852 ...then sell a losing investment for a loss of $10,000 Loss cancels the gain: taxable gain falls to $0 → Tax saved: $1,852 Example at a 37.04% marginal rate. Your province and income change the rate (see Tax Rates).
How a capital gain or loss is taxed. Only half of a capital gain is taxable (the 50% inclusion rate), and that half is taxed at your marginal rate. A capital loss offsets gains the same way, so harvesting a loss saves tax on half of the gain it cancels.

Choosing a replacement while you wait out the 30 days

General criteria only. We do not name or recommend any investment.

No CRA ruling on specific funds

Treat as identical (avoid)

  • The same fund, or the same company's shares, bought in any account that counts: yours, your spouse's, a corporation you control, your TFSA or RRSP.
  • The CAD and USD units of the same fund, or the same fund at a different broker.
  • Funds from different issuers that track the same index. The CRA's one position on index funds that we could find (a 2001 technical interpretation about index mutual funds) treats them as identical property. Many tax specialists argue that view is outdated for ETFs, but the CRA has not changed it publicly.

A stronger case, still not guaranteed

  • A fund that follows a different index from a different provider, with different index rules (the kind of difference in the CRA's 2001 TSE 300 vs TSE 60 example).
  • A currency-hedged and an unhedged fund on the same stocks. We found no CRA statement or case on it.
  • All-in-one portfolios from different issuers, which hold different underlying funds. Defensible, not tested.

How to check before you trade

  1. Open each fund's page at its issuer and write down the exact index it tracks.
  2. If the two indexes are the same, stop: treat them as identical.
  3. If they differ, compare the provider, the index rules and what the funds hold.
  4. Ask your accountant, who can also tell you how to request a written CRA ruling for a specific plan.

The CRA's test is whether the funds are "the same in all material respects, so that a prospective buyer would not have a preference for one as opposed to another" (bulletin IT-387R2), a question of fact. Different indexes make a stronger case, but nothing here is guaranteed, and swapping funds also changes what you own.

Capital gains inclusion rate Ten thousand dollars of interest is fully taxable, costing $4,341 at a 43.41 percent marginal rate. Ten thousand dollars of capital gain is only half taxable, costing $2,171, which is an effective rate of 21.7 percent. The same $10,000, taxed two ways (at a 43.41% marginal rate) Interest or salary fully taxable 100% taxable: $10,000 Tax $4,341 Capital gain only half is included 50% not taxed: $5,000 50% taxable: $5,000 Tax $2,171 Effective tax rate on a capital gain = marginal rate x 50% 43.41% x 50% = 21.7% on the gain, so a $1 loss saves half as much as a $1 of salary costs. Example at a 43.41% 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.
Capital loss carryback and carryforward A timeline: the loss year in the middle, the three previous years to the left where the loss can be carried back for a refund, and all later years to the right where it can be carried forward indefinitely. 3 years ago 2 years ago Last year This year loss exceeds gains Next year Later years Carry back up to 3 years (Form T1A) for a refund Or carry forward, no time limit Capital losses can only be applied against taxable capital gains, not against salary or other income.
What happens to a net capital loss. Losses first offset this year's gains. If you have more losses than gains, the leftover (a net capital loss) can be applied to taxable capital gains in any of the three previous years by filing Form T1A, or carried forward with no time limit.
Superficial loss timeline A timeline with the sale in the middle. Buying identical property in the 30 days before or after the sale denies the loss. Buying outside that 61-day window, or buying a different ETF, keeps the loss. 61-day window: identical purchase = loss denied Day -30 Sale Day +30 Loss is allowed if you buy a different-index ETF, or wait until day 31 Loss is denied if you rebuy the same ETF in the window, even in your TFSA, RRSP or spouse's
The 61-day superficial loss window. If you (or someone affiliated with you) buy identical property during the 30 days before or after the sale, and still hold it at the end of that period, the capital loss is denied. A different-index ETF, or waiting until day 31, avoids the rule.

How the tax-loss harvesting estimator works

Selling an investment at a loss in a non-registered account creates a capital loss that offsets capital gains in the same year. Only half of a gain is taxable, so a loss saves half of the loss times your marginal rate. This estimator computes the real difference in federal and provincial tax with and without the offset, using the CRA's 2026 brackets, so the saving follows your income instead of using a single rate.

What this calculator assumes

  • Taxable income is your income before this year's realized gains. The 50% capital gains inclusion rate applies.
  • Rates are the CRA's 2026 federal and provincial brackets, with the Ontario surtax and the Quebec abatement. Credits, the alternative minimum tax and income-tested benefits are not included.
  • Losses larger than your gains become a net capital loss that you can carry back three years (Form T1A) or forward indefinitely; the estimator shows the amount but not its value.
  • The ten-year figure assumes the saving is reinvested at 7.5% a year, which is an assumption, not a forecast.

Frequently asked questions

How much tax do I save by harvesting losses?

A capital loss offsets capital gains dollar for dollar, and half of the offset gain would have been taxable. The saving is therefore about half the offset times your marginal rate: for example, a $10,000 loss against a $10,000 gain at a 43% marginal rate saves roughly $2,200.

What is the superficial loss rule?

If you or an affiliated person buy identical property within 30 days before or after you sell at a loss, and still hold it at the end of that period, the loss is denied. Read our superficial loss guide before you trade.

Can I carry back a capital loss?

Yes. A net capital loss can be applied to taxable capital gains in any of the three previous years (using Form T1A) or carried forward indefinitely.

Does buying a different fund guarantee the loss?

No. The CRA has not ruled on specific ETFs. Its one position on index funds that we found (a 2001 technical interpretation) says funds on different indexes would generally not be identical, but funds on the same index from different institutions generally would be. So treat same-index funds as identical. We do not name or recommend any investment. Confirm any replacement with your accountant.

Related

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

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