Canada Capital Gains Calculator

What is the capital gains inclusion rate in Canada?

For individuals the inclusion rate is 50%: half of your capital gain is added to your taxable income and taxed at your marginal rate. A proposal to raise the rate to two-thirds on gains above $250,000 a year was cancelled by the federal government in March 2025, so the 50% rate applies to all gains, large or small.

What is the lifetime capital gains exemption?

The lifetime capital gains exemption (LCGE) lets you shelter up to $1,250,000 of gains on the sale of qualified small business corporation shares or qualified farm or fishing property. The $1,250,000 limit applies to dispositions on or after June 25, 2024. The shares must meet strict tests on the corporation’s assets and holding period, so confirm eligibility with an accountant before relying on it.

Is the sale of my home subject to capital gains tax?

Not if it is your principal residence for every year you owned it. The gain is then fully exempt, but since the 2016 tax year you must still report the sale and designate the home on Schedule 3 and Form T2091. A second property such as a cottage or a rental is taxable, and if the home was a rental or used for business for part of the time, part of the gain may be taxable.

How is the adjusted cost base (ACB) calculated?

The ACB is what you paid for the asset plus costs of acquiring it, such as commissions, legal fees and, for real estate, capital improvements. For identical shares or units bought at different times, use the average cost across all of them. Your gain is proceeds minus ACB minus the costs of selling. The CRA does not track your ACB for you, so keep your records.

Can I use capital losses to reduce the tax?

Yes. Capital losses first offset capital gains in the same year. Any net loss can be carried back up to three years to reduce gains you already paid tax on, or carried forward indefinitely. Beware the superficial loss rule: if you or an affiliated person buys the same security within 30 days before or after the sale, the loss is denied.

Are cryptocurrency gains taxable in Canada?

Yes. Selling crypto for dollars, swapping one coin for another, and spending crypto on goods are all dispositions that can create a capital gain or loss, usually included at 50%. If trading is frequent enough to be a business, or you earn crypto through mining or staking, the income is taxed as business or other income at 100% rather than as a capital gain.

How can I reduce capital gains tax legally?

Hold investments inside a TFSA or RRSP, where gains are sheltered or deferred. Donate publicly listed securities directly to a registered charity, which eliminates the taxable gain. Realize losses to offset gains. Spread a large gain over several years with a capital gains reserve, which can span up to five years for most assets. Use the principal residence exemption and, where eligible, the lifetime exemption.

Why is the tax shown different from my actual tax bill?

The calculator applies the marginal tax rate that corresponds to your other income plus the taxable gain to the whole taxable gain. A large gain actually fills several brackets, so the real tax is usually lower than this single-rate estimate for big gains. It also uses approximate combined federal and provincial rates for six provinces and ignores credits, the alternative minimum tax and surtaxes. Use it for planning and confirm with tax software or an accountant.