Capital Gains Tax · Canada
Capital Gains Tax Calculator (Canada, 2026)
Sold an investment, a second property, or other capital property? Estimate the 2026 tax on your gain. Enter your realized capital gain, your other taxable income, and your province or territory, and the calculator applies the 50% inclusion rate, stacks the taxable portion on top of your other income, and shows the tax the gain actually adds, your average and next-dollar rates, and what you keep after tax.
Last verified: Effective for 2026 tax year by Fiscal Moose
- Inclusion rate
- 50%
- Jurisdictions
- 12 + federal
- Tax on a $200k ON gain
- $43,201.42
Your gain
Your tax on this gain
- Estimated tax on your capital gain
- $43,201.42
on a $200,000.00 gain · $156,798.58 after tax
- Taxable portion (50.00% inclusion)
- $100,000.00
- Average tax rate on this gain
- 21.60%
- Tax on your next dollar of gain
- 24.13%
Show how the tax on your gain is calculated
| Step | Amount |
|---|---|
| Other taxable income | $100,000.00 |
| Taxable capital gain (gain × 50.00%) | +$100,000.00 |
| Taxable income with the gain | $200,000.00 |
| Income tax with the gain | $63,971.99 |
| Income tax without the gain | −$20,770.57 |
| Tax on the capital gain | $43,201.42 |
How a capital gain is taxed in 2026
In Canada you are not taxed on the whole gain, only the taxable portion, which is the gain multiplied by the inclusion rate. For 2026 that rate is 50% (one-half) for individuals. The taxable portion is then added to your other income and taxed through the marginal brackets it reaches. So a gain does not have its own flat tax; it stacks on top of everything else you earn, taxed at your top brackets, including any federal Basic Personal Amount phase-out and provincial surtax it pushes you into. That is why the same gain costs more tax for a higher earner. If you want the tax on your salary and other income before the gain, use the income tax calculator; the gain stacks on top of exactly that figure.
The 2024 to 2025 inclusion-rate saga: why it is still 50%
The inclusion rate is the most fought-over number in recent Canadian tax history. The 2024 federal budget proposed raising it from one-half to two-thirds (66.67%) on the part of an individual’s annual gains above $250,000, effective June 25, 2024. That increase was first deferred to January 1, 2026 (January 31, 2025), and then cancelled outright on March 21, 2025. So for 2026 there is no $250,000 threshold and no two-thirds tier: the inclusion rate is a flat one-half on the whole gain. (The increase to the Lifetime Capital Gains Exemption limit, to $1.25 million, was kept; this calculator does not yet model the LCGE.) We track this figure every January and on every federal budget, because it is the one most likely to change again.
Average rate vs marginal rate on your gain
The calculator shows two rates, and they are not the same. The average tax rate on this gain is the total tax the gain adds divided by the whole gain; it is lower, because only half is taxable and the first dollars stack onto lower brackets. The tax on your next dollar of gain is the marginal rate: the extra tax from one more dollar of realized gain, which adds only the inclusion rate (half a dollar in 2026) to your taxable income, measured as that exact unrounded slope at your income with the gain. Use the average to see what this gain costs; use the marginal to see what one more dollar of gain would cost.
Canadian capital gains inclusion rate by year
The inclusion rate is the fraction of a capital gain that is taxable. It has changed over the decades; the 2026 rate for individuals is 50%.
| Period | Inclusion rate | Note |
|---|---|---|
| 2001 to 2025 | 1/2 (50%) | The enacted rate for individuals across this period (CRA inclusion-rate table). |
| 2026 | 1/2 (50%) | Flat one-half maintained. The proposed two-thirds increase was cancelled and no increase was enacted (no $250,000 threshold). |
| 2024 to 2026 (proposed, then cancelled) | 2/3 (66.67%) above $250,000 | Proposed in Budget 2024 (effective 2024-06-25), deferred to 2026-01-01 on 2025-01-31, then CANCELLED on 2025-03-21. Never enacted. |
| 2000 | 3/4, then 2/3, then 1/2 | A transitional year with three rates as the rate was lowered. |
| 1990 to 1999 | 3/4 (75%) | The historical high. |
| 1988 to 1989 | 2/3 (66.67%) | The first increase from the original 1/2. |
Sources and methodology
Sources
Known limitations
- Covers the 2026 tax year only; other years are added as the law is confirmed.
- For individuals only. The (proposed, then cancelled) 66.67% rate would have applied to all gains of corporations and most trusts; a different regime this tool does not model.
- Quebec is not yet supported. Quebec income tax is administered separately by Revenu Québec (with a 16.5% federal abatement).
- Does not model capital LOSSES or loss carry-forward/back. A loss offsets capital gains (this year, or carried back three years / forward indefinitely), not your other income; enter only a net gain.
- Does not model the Lifetime Capital Gains Exemption (LCGE, up to $1.25M on qualified small-business, farm, and fishing property) or the Canadian Entrepreneurs’ Incentive.
- Does not model the Alternative Minimum Tax (AMT). A large capital gain is one of the most common AMT triggers, so your total tax may be higher than this estimate; check Form T691.
- Does not model the principal-residence exemption (a gain on your principal residence is generally exempt) or capital gains reserves (deferring part of a gain).
- Assumes you supply the realized gain directly. It does not compute your adjusted cost base (ACB) from purchase price, sale price, and outlays.