Investing · capital gains
Capital Gains Calculator
Work out the tax on selling stocks, crypto or property. Half of a capital gain is taxable.
Salary and other income before the gain. It sets your tax bracket.
Total gain
Taxable portion (50%)
Estimated tax owed
How Capital Gains Are Taxed in Canada (2026)
A capital gain is the profit when you sell an investment or property for more than its adjusted cost base (ACB): what you paid plus purchase and selling costs such as commissions. In 2026, 50% of the gain is taxable. That half is added to your income and taxed at your combined federal and provincial marginal rate.
The federal government proposed raising the inclusion rate to two-thirds for gains above $250,000, but cancelled that change in March 2025. The 50% rate applies to all capital gains for individuals.
Worked Example
| Step | Amount |
|---|---|
| Sale price of shares | $30,000 |
| Minus adjusted cost base (incl. fees) | −$10,000 |
| Capital gain | $20,000 |
| Taxable portion (50%) | $10,000 |
| Tax at a 30% marginal rate | $3,000 |
In effect, a 30% marginal rate becomes a 15% tax on the whole gain. Enter your own marginal rate above, or find it with the income tax calculator.
Ways to Reduce Capital Gains Tax
- Offset with capital losses: losses reduce gains in the same year, can be carried back 3 years, or carried forward indefinitely.
- Use registered accounts: gains inside a TFSA are never taxed, and gains inside an RRSP or FHSA are not taxed as capital gains.
- Principal residence exemption: the gain on a home you lived in is generally tax-free for each year it was your principal residence.
- Lifetime capital gains exemption: up to $1.25 million of gains on qualified small business shares or farm and fishing property can be exempt.
- Time your sales: selling in a lower-income year means the taxable half is taxed at a lower marginal rate.
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Frequently Asked Questions
What is the capital gains inclusion rate in 2026?
50%. Half of your net capital gain is added to your taxable income. The proposed increase to two-thirds for gains over $250,000 was cancelled in March 2025.
How is capital gains tax calculated in Canada?
Subtract the adjusted cost base (purchase price plus costs) from the sale proceeds, take 50% of the gain, and add it to your income. It is then taxed at your marginal rate, so the effective tax on the whole gain is half your marginal rate.
Do I pay capital gains tax on my house?
Usually not. The principal residence exemption generally makes the gain on your home tax-free for each year it was your principal residence. You still have to report the sale on your tax return.
Can I use capital losses to reduce my taxes?
Yes, but only against capital gains. Net capital losses can be carried back three years or forward indefinitely to offset future gains. Selling and rebuying the same investment within 30 days triggers the superficial loss rule, which denies the loss.
Is crypto taxed as a capital gain in Canada?
Usually. Selling, trading or spending crypto is a disposition, and occasional investors report the profit as a capital gain. Frequent or business-like trading can instead be taxed as business income at 100%.
Rules as of September 2026. Source: Canada Revenue Agency — Capital gains. This tool gives estimates, not tax advice.
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