Capital Gains Tax in Ontario (2026)

In Ontario, half of a capital gain is added to your taxable income, so the rate on the gain is half of your combined federal and provincial marginal rate: 9.53% on lower incomes, up to 26.77% on taxable income over $258,482. What you actually pay depends on how much other income you have, because a large gain can push part of itself into higher brackets.

Capital gains rate by income in Ontario

Ontario combined capital gains tax rate by taxable income, 2026
Taxable income	Rate on the next dollar of income	Rate on a capital gain
Up to $53,891	19.05%	9.53%
$53,891 to $58,523	23.15%	11.58%
$58,523 to $94,901	29.65%	14.83%
$94,901 to $107,785	31.48%	15.74%
$107,785 to $111,810	33.89%	16.95%
$111,810 to $117,045	37.91%	18.96%
$117,045 to $150,000	43.41%	21.71%
$150,000 to $181,440	44.97%	22.49%
$181,440 to $220,000	47.97%	23.99%
$220,000 to $258,482	49.53%	24.77%
Over $258,482	53.53%	26.77%

From the CRA's 2026 federal and Ontario brackets, including the Ontario surtax. See all of Ontario's rates, including dividends, on the Ontario tax rates page.

Tax on a capital gain in Ontario: worked examples

The extra federal and Ontario tax from a gain, by the gain and by your other taxable income. The percentage is the effective rate on the whole gain.

Tax on capital gains of $10,000, $50,000 and $100,000 in Ontario by other taxable income
Other taxable income	$10,000 gain	$50,000 gain	$100,000 gain
$60,000	$1,483 (14.83%)	$7,413 (14.83%)	$15,155 (15.15%)
$100,000	$1,574 (15.74%)	$9,253 (18.51%)	$20,105 (20.11%)
$150,000	$2,248 (22.48%)	$11,242 (22.48%)	$23,042 (23.04%)
$250,000	$2,476 (24.76%)	$13,043 (26.09%)	$26,426 (26.43%)

Calculate it with your numbers

Frequently asked questions

What is the capital gains tax rate in Ontario in 2026?

Half of a capital gain is taxable, so the rate on a gain is half of your marginal rate: from 9.53% on lower incomes up to 26.77% on taxable income over $258,482.

How much tax would I pay on a $50,000 capital gain in Ontario?

With $100,000 of other taxable income, a $50,000 gain adds about $9,253 of federal and Ontario tax, an effective rate of 18.51% on the gain. Your own numbers will differ; the calculator below uses them.

Is the capital gains inclusion rate different in Ontario?

No. The 50% inclusion rate is federal and applies in every province. Only the provincial income tax brackets differ, which is why the rate on a gain differs between provinces. The proposed increase to two-thirds was cancelled in March 2025.

Do I pay capital gains tax on my home in Ontario?

Usually not on your principal residence, if you designate it correctly. Rental properties, cottages and second homes are generally taxable, and a gain on shares or funds in a non-registered account is taxable in the year you sell.

Educational estimates, not tax, legal or investment advice. Credits, the alternative minimum tax and the lifetime capital gains exemption are not included. Talk to a licensed Canadian CPA or CFP before acting.