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    Canadian Capital Gains Tax Calculator (2025)

    50% inclusion rate, with LCGE for Qualified Small Business Corporation shares and full Principal Residence Exemption. Federal + provincial tax calculated at your marginal rate.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (allowances used elsewhere, reliefs, marriage allowance, scheme-specific adjustments). Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

    Your disposition

    2025 tax year — all figures in CAD

    Proceeds of disposition minus adjusted cost base and selling costs.

    Used to determine the marginal rate applied to the taxable gain.

    Capital gains tax payable

    Federal + provincial tax on the gain

    Total capital gains$0
    Net capital gain subject to tax$0
    Taxable capital gain (50% inclusion)$0
    Federal tax on gain$0
    Provincial tax on gain$0
    Total CGT payable
    $0
    Effective rate on gross gain: 0.0%

    How Canadian capital gains tax works

    50% inclusion rate

    Only half of a capital gain is included in your taxable income. That taxable portion is taxed at your regular marginal federal and provincial rates — there is no separate capital gains rate.

    Principal Residence Exemption

    A gain on a property designated as your principal residence is fully exempt. Only one principal residence per family unit per year may be designated.

    Lifetime Capital Gains Exemption

    Qualifying Small Business Corporation share gains are sheltered up to a lifetime limit of $1,250,000 (2025, indexed). LCGE used in prior years reduces what is available now.

    Capital losses

    Capital losses can only offset capital gains, not other income. Unused losses can be carried back three years or forward indefinitely.

    Assumptions used in this calculation (click to expand)

    What this calculator assumes

    • Canadian-resident individual (not corporation, trust, or non-resident).
    • Disposal falls in the selected calendar tax year.
    • Capital gain is computed before applying any allowable capital losses from the year or carried-over net capital losses.
    • 50% inclusion rate applied uniformly (the proposed 2/3 inclusion rate above $250k was cancelled).
    • Province selected drives the provincial portion of the marginal rate.

    Not included in this calculation

    • Lifetime Capital Gains Exemption (LCGE) on QSBC, farm, and fishing property — see /tax-reliefs/business-asset-disposal-relief.
    • Net capital loss carry-forward (indefinite) or carry-back (3 years) against other capital gains.
    • Non-resident dispositions of taxable Canadian property (s.116 clearance certificate).
    • Principal residence exemption and the change-in-use rules.
    • Deemed disposition at death (ITA s.70(5)) and spousal rollover.

    Statutory basis

    • ITA s.38 (50% inclusion rate for capital gains)
    • ITA ss.39–55 (computation of capital gains and losses)
    • Budget Implementation Act 2024 (proposed 2/3 inclusion rate, later cancelled)
    How this is calculated (click to show the formula)

    Capital gain tax computation

    Tax = Capital gain × 50% inclusion × marginal rate (federal + provincial)

    Half the gain is added to taxable income and taxed at the taxpayer's combined federal + provincial marginal rate. There is no annual exemption; the principal residence exemption and LCGE are claimed separately on qualifying property.