Canada Capital gains tax calculator

Short and long-term capital gains tax estimates by region.

By Mitch Duncan Last reviewed 8 July 2026 Methodology

Your gain

Capital gain (CAD)Holding period

Est. tax owed

$1,750.00

Net gain

$23,250.00

Effective rate

7.0%

50% inclusion rate applied (federal). Add provincial tax. The proposed two-thirds inclusion rate above $250k was cancelled in 2025.

Estimates only

Capital gains tax depends on your full tax picture, allowable losses, deferrals, and local rules not modelled here. Consult a tax professional before filing.

Next step

Income taxAnnual tax — US, UK, CA, AU Read the guideHow to Reduce Capital Gains Tax: 9 Legal Strategies

Want the full picture? How to Reduce Capital Gains Tax: 9 Legal Strategies →

How Canadian capital gains tax is calculated

Canada doesn't have a separate CGT rate. Instead, a portion of your gain — the inclusion rate — is added to taxable income and taxed at your marginal rate:

Taxable amount = capital gain × inclusion rate (50%)

Worked example

Sell stock for a $10,000 gain; your marginal rate (federal + provincial) is 30%.

Taxable portion: $10,000 × 50% = $5,000
Tax: $5,000 × 30% = $1,500
Effective rate on the gain: 15%

So your effective capital-gains rate is roughly half your marginal income-tax rate.

Inclusion rate and registered accounts

The standard inclusion rate is 50%. Gains realised inside a TFSA are completely tax-free; gains inside an RRSP/FHSA are tax-deferred (taxed as income on withdrawal). Holding growth assets in registered accounts is the simplest way to avoid the inclusion entirely.

Principal residence

The sale of your principal residence is generally exempt for every year it qualifies. You must still report the sale on your return to claim the exemption.

Common mistakes

Forgetting to report a principal-residence sale.
Holding growth assets in a taxable account when TFSA/RRSP room is unused.
Ignoring the superficial-loss rule (Canada's version of the wash sale, 30 days).

What this doesn't cover

Provincial tax detail
Lifetime capital gains exemption on qualified small-business shares
Capital-loss carrybacks/carryforwards

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Key terms

Cost Basis Capital Gains Tax-Loss Harvesting Capital Loss Full glossary →

Frequently asked questions

What's the difference between short-term and long-term capital gains?

Short-term gains (assets held one year or less in the US) are taxed as ordinary income at your marginal rate — up to 37%. Long-term gains (held over one year) get preferential rates of 0%, 15%, or 20% depending on income. The UK, Canada, and Australia have different rules — Australia gives a 50% discount on assets held over 12 months, for example.

How is capital gains tax calculated?

Gain = sale price − cost basis − selling expenses. The gain is then taxed at the applicable rate (short- or long-term in the US; ordinary income with a 50% inclusion in Canada; 50% discount in Australia; flat 10/18/20/24% bands in the UK after the annual exempt amount). The calculator above handles each market's rules.

Do I owe capital gains tax on my primary residence?

US: usually no, up to $250,000 of gain ($500,000 married filing jointly) if you've lived there 2 of the last 5 years. UK: principal residence is generally exempt under Private Residence Relief. Canada: principal residence is fully exempt. Australia: main residence is generally exempt with caveats around use and ownership period.

Can I offset capital gains with losses?

Yes — capital losses offset capital gains, and excess losses can offset some ordinary income ($3,000/year in the US; £0 — UK losses carry forward indefinitely against gains; Canada and Australia carry forward losses indefinitely). 'Tax-loss harvesting' — deliberately realising losses to offset gains — is a common end-of-year strategy.

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