Canada Capital Gains Calculator

What is the capital gains inclusion rate in Canada for 2024?

Canada's 2024 federal budget proposed increasing the inclusion rate from 50% to 66.67% on capital gains above $250,000/year for individuals (and all gains for corporations/trusts). Below $250,000, the 50% inclusion rate remains. This means: if you have a $300,000 gain, the first $250,000 is 50% included ($125,000 taxable) + $50,000 at 66.67% ($33,333 taxable) = $158,333 total taxable.

What is the Adjusted Cost Base (ACB)?

The ACB is essentially your "book value" — what you paid for the asset plus any additional costs (commissions, legal fees, improvements for real estate). For identical securities, the ACB is averaged across all purchases. Selling costs (commissions, legal fees on sale) are subtracted from proceeds. Record-keeping is your responsibility — CRA does not track your ACB for you.

How do I avoid capital gains tax in Canada?

Legal strategies: Use your principal residence exemption for your home. Use RRSP or TFSA for investments (gains inside are sheltered from tax). Claim the Lifetime Capital Gains Exemption ($1,016,602 in 2024) for qualifying small business shares or farm/fishing property. Time gains across years to stay under $250,000/year. Donate appreciated securities to charity (no capital gains on donated shares).

Are cryptocurrency gains taxable in Canada?

Yes — CRA treats cryptocurrency as a commodity. Selling crypto for CAD, trading one crypto for another, or using crypto to purchase goods/services are all taxable events that trigger capital gains (or losses). The same 50%/66.67% inclusion rates apply. Mining income is taxed as business income at 100% (not capital gains). CRA has been increasingly focused on crypto compliance.