Work out the tax on a capital gain in Canada. Enter your sale details — or the gain directly — plus your province, your other taxable income and any capital losses carried forward, and this calculator applies the flat 50% inclusion rate and your real 2026 federal and provincial brackets to find the tax.
Calculate the tax on your capital gain
General information only — not financial advice. The gain is sale proceeds minus the adjusted cost base (ACB) minus selling costs. Only 50% of the gain is taxable — a flat rate, with no $250,000 threshold.
How to use this calculator
Enter the sale proceeds, the adjusted cost base (ACB) and any selling costs — the gain is proceeds minus ACB minus selling costs. If you already know the gain, choose “Enter the gain directly” instead. Then add your province, your other taxable income for the year, and any capital losses carried forward.
Your province matters because the taxable half of the gain is added to your other income and taxed at your combined federal and provincial rates. Capital losses carried forward reduce the gain first — only what is left is halved and taxed. The result shows the tax on the gain, the effective rate on the full gain, and the marginal rate on the next dollar of gain.
Frequently asked questions
What is the capital gains inclusion rate in Canada for 2026?
50%. Only half of a capital gain is added to your taxable income. The other half is tax-free. The 50% rate is flat — it applies to the whole gain, with no threshold and no higher tier.
Is there a higher 66.67% rate on gains over $250,000?
No. A 66.67% inclusion rate on gains above $250,000 was proposed in Budget 2024, then deferred, and then cancelled on March 21, 2025. It never took effect, so there is no $250,000 threshold and no higher tier. Some other calculators still use the cancelled rate — their results are wrong.
How does this calculator work out my tax?
It adds the taxable half of the gain to your other taxable income, works out the total 2026 tax with and without the gain using the full federal and provincial brackets, and takes the difference. That is the delta method: it handles gains that cross a bracket boundary, the federal basic personal amount phase-out, and Ontario’s surtax, instead of applying one flat marginal rate to the whole gain.
Can I apply capital losses?
Yes. Enter capital losses carried forward and they reduce the gain before the 50% inclusion rate is applied. Only net capital losses count, under CRA rules, and losses can shelter the gain down to zero — never below.
What does this calculator not cover?
The principal-residence exemption, the $1.25M lifetime capital gains exemption for qualified small business corporation shares and qualified farm or fishing property, and the superficial-loss rules. Corporate and trust gains are also out of scope. Those situations need a tax professional.
Methodology and sources
Methodology: A capital gain is sale proceeds minus the adjusted cost base (ACB) minus selling costs. Only 50% of the gain — the inclusion rate — is taxable, and there is no threshold: the 50% rate applies to the whole gain. Losses carried forward are applied to the gain first. The tax on the gain is worked out by the delta method: total 2026 tax on (other income plus taxable gain) minus total 2026 tax on other income alone, using the verified 2026 federal and provincial brackets — the same tax engine used by the Canadian Income Tax Calculator and the Marginal Tax Rate Calculator. That handles bracket crossings, the federal basic personal amount phase-out and Ontario’s surtax, instead of applying one flat rate to the whole gain.
Source: Canada Revenue Agency (CRA) — Capital gains (Line 12700) and CRA — Tax rates and income brackets (2026).
2026 rules · Verified November 9, 2026.
How we keep this calculator honest: The tax on the gain is calculated with the same verified 2026 tax engine as the Income Tax and Marginal Tax Rate calculators on this site. The figures were checked against the known Ontario marginal rates — 43.41% at $135,000 and 53.53% at $335,000 — before publication.
Your numbers never leave this page. This calculator runs entirely in your browser — nothing you enter is stored or sent anywhere.
General information only — not financial advice. This calculator covers the basic capital gains rules only: it does not apply the principal-residence exemption, the $1.25M lifetime capital gains exemption for qualified small business corporation shares and qualified farm or fishing property, or the superficial-loss rules. Corporate and trust gains are not covered.
Related tools
Your tax on the gain depends on your other income: run your full bill through the Canadian Income Tax Calculator, or check the rate on your next dollar with the Marginal Tax Rate Calculator. For the wider tax picture, read Federal Budget 2026: What Actually Changes for Your Taxes.