Canada Capital Gains Tax Calculator
This capital gains tax calculator for Canada estimates tax on shares or property using the 50% inclusion rate and your combined federal and provincial rate.
What it does
The Canada Capital Gains Tax Calculator estimates the tax on a taxable capital gain by applying the inclusion rate and your combined federal and provincial marginal rate.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Federal personal income tax brackets and rates for 2026. | Rate schedule | canada.ca | Effective 2026-01-01Verified unchanged at CRA; citation repointed to the CRA page that prints the figures (the stored link was truncated and dead). |
| Maximum federal basic personal amount for 2026. | 16,452 | canada.ca | Effective 2026-01-01Verified 16452 at CRA indexation page; citation repointed (the stored link was truncated and dead). |
| Provincial and territorial personal income tax brackets and rates for 2026. | Rate schedule | canada.ca, revenuquebec.ca | Effective 2026-01-01BC lowest rate corrected 5.06 to 5.6 pct; PE fourth band to 142520 with a new 20 pct band over 200000. MB kept at 47000/100000: its indexation is paused, and CRA payroll tables confirm it. |
| Provincial and territorial basic personal amounts for 2026, claimed at each jurisdiction lowest rate. | Rate schedule | canada.ca, revenuquebec.ca | Effective 2026-01-01NL raised from 11188 to 13094, retroactive to 1 January 2026 (CRA T4127 July 2026, 123rd edition; payroll applies a prorated 15000 from July). Other 12 amounts unchanged. audit 2026-09-23 |
| Lowest provincial or territorial tax rate for 2026, used to value the provincial basic personal amount credit. | Rate schedule | canada.ca, revenuquebec.ca | Effective 2026-01-01BC corrected from 5.06 to 5.6 pct for 2026. Every other jurisdiction verified unchanged against its 2026 first bracket. |
| Ontario surtax for 2026: 20 pct of basic Ontario tax over 5818 plus 36 pct over 7446. Prince Edward Island has no surtax. | Rate schedule | canada.ca | Effective 2026-01-01Label names the year in the auditor format. Thresholds 5818 and 7446 unchanged (CRA T4032ON effective 2026-01-01). audit 2026-09-23 |
| Capital gains inclusion rate | 0.5 | canada.ca | Effective 2025-01-0150% inclusion; proposed 2/3 increase cancelled 2025-03-21 (verified 2026-08) |
| Quebec abatement of basic federal tax | 0.165 | canada.ca | Effective 2026-01-01Quebec refundable federal tax abatement (reduces federal tax for Quebec residents) |
| Minimum federal basic personal amount for 2026, reached at net income of 258,482 and above. Between 181,440 and 258,482 the amount falls in a straight line from the maximum. The Yukon amount follows the same formula. | 14,829 | canada.ca | Effective 2026-01-01 |
| Manitoba basic personal amount phase-out for 2026: full amount at net income up to 200,000, falling in a straight line to zero at 400,000. | Rate schedule | canada.ca | Effective 2026-01-01 |
| Ontario tax reduction for 2026 (no dependants): tax and surtax are reduced by the lesser of that amount and twice the basic reduction amount minus it. | Rate schedule | canada.ca | Effective 2026-01-01 |
| British Columbia tax reduction for 2026 (BC announcement of 17 February 2026): up to 690 at taxable income to 25,570, then falling at 3.56 percent of the excess until it reaches zero at 44,952. | Rate schedule | canada.ca | Effective 2026-01-01Corrected from the January 2026 payroll table (575, ending 41,722) to the July 2026 edition's annual (Option 2) formula: maximum 690, 3.56 percent, zero above 44,952. |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Tax = combined tax(other income + gain x inclusion) - combined tax(other income)
How it works
It works out the gain (proceeds minus adjusted cost base), includes the taxable portion at the CRA inclusion rate, and taxes it as the top slice of your income.
Where it is used
- Estimating tax when selling shares or property
- Comparing after-tax proceeds across provinces
- Planning the timing of a sale
Worked example
A CA$50,000.00 sale with a CA$30,000.00 cost base is a … gain; … is taxable and the estimated tax is ….
What the capital gains tax calculator does
The calculator estimates the tax you owe when you sell an investment or property for more than it cost. It works out your gain, applies the inclusion rate that decides how much of the gain is taxable, and taxes that portion at your combined federal and provincial marginal rate, giving an estimate of the tax on a single sale.
Because only part of a capital gain is included in income, the tax is usually lighter than on the same amount of salary or interest. Seeing the number before you sell helps you plan the timing and the after-tax proceeds.
How capital gains tax works in Canada
When you dispose of a capital asset, the profit is a capital gain. Canada includes half of it in your taxable income for the year. That amount sits on top of everything else you earn and is taxed at your marginal rate, which combines a federal rate and a provincial or territorial rate.
Because the taxable portion sits at the top of your income, a large gain can push part of itself into a higher bracket, so two people with the same gain but different salaries can owe different amounts. The calculator adds the taxable gain on top of your other income rather than taxing it in isolation.
How the calculation works
- It subtracts the adjusted cost base from the proceeds to find the gain.
- It multiplies the gain by the inclusion rate to find the taxable amount.
- It adds that taxable amount on top of your other income.
- It measures the extra combined federal and provincial tax that the addition creates.
The difference between your tax with and without the gain is the tax attributable to the sale.
A worked example
You sell shares for $50,000 that cost $30,000, and you already earn $80,000 in Ontario. The gain is $20,000 and half of it, $10,000, is taxable. Stacked on $80,000 of income, that slice is taxed at 20.5% federally and 9.15% provincially, a combined marginal rate of 29.65%. The tax on the gain is about $2,965, leaving net proceeds of about $47,035. That is an effective rate of about 14.8% on the whole gain. Change the province and the combined rate moves, which is why the tool asks where you live.
What you need to enter
- The proceeds you received on the sale.
- The adjusted cost base, including purchase price and eligible costs.
- Your other taxable income for the year.
- Your province or territory of residence.
If you have several sales in a year, you can estimate each and add the taxable portions to your income, because gains are assessed against your total taxable income for the year.
Reading your result
The output shows the gain, the taxable portion, the estimated tax and your net proceeds after tax. The taxable portion explains why the effective rate on the whole gain is lower than your marginal rate. The marginal figure is the rate on the included slice, which helps when deciding whether to realize more gains this year or defer them.
This is a planning estimate. Capital losses on other assets, exemptions and specific rules can change what you owe, so confirm the details with the CRA or an adviser when the amount is significant.
Factors that can change your capital gains tax
Capital losses matter most: a loss on one asset can offset a gain on another in the same year, and unused net capital losses can be carried back three years or forward indefinitely, so your net taxable gain may be much smaller than one sale suggests. Reinvested distributions and return-of-capital adjustments also change the cost base over time, which is why good records matter for anything held for years.
Timing is another lever. Realizing a large gain in a year when your income is already high pushes more of it into upper brackets. Spreading sales across calendar years, or realizing a gain in a lower-income year such as a sabbatical or early retirement, can lower the combined rate. You can test this by changing the other-income figure and the province.
How the asset is held also matters. Gains inside a TFSA or RRSP are not taxed as capital gains, and a principal residence is generally exempt. This tool is for taxable assets held outside registered plans, such as investments and secondary property.
When to use this tool
Use it when weighing a sale, comparing provinces before a move, or budgeting for the tax a sale will create. For the exact figure at tax time, a full return that includes your losses, exemptions and other income is the authority. Run the estimate again when your income or the rules change.
This is general information only and not financial advice.
About This Tool: Capital Gains Tax Calculator Canada
Capital gains tax calculator canada: use this tool to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2025 · Data last reviewed 2026-10-19
Frequently asked questions
How does this capital gains tax calculator for Canada work?
What is the adjusted cost base?
Why is only part of my gain taxed?
Does my province change the result?
Is a principal residence taxed?
Is my data kept private?
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