Toolzie

Capital Gains Tax Calculator Canada 2026

Capital Gains Tax Calculator

2026 tax year · 50% inclusion rate · Federal + Provincial

How to Use the Capital Gains Tax Calculator Canada 2026

Enter your proceeds, adjusted cost base, selling costs, and other income. The calculator applies the 50% capital gains inclusion rate for 2026 and your combined federal + provincial marginal tax rate to show your exact capital gains tax liability and after-tax proceeds.

Frequently Asked Questions

What is the capital gains inclusion rate for 2026 in Canada?

The 2026 capital gains inclusion rate is 50% for individual filers on every dollar of gain. The proposed 66.67% rate for gains above $250,000 (Budget 2024) was cancelled and is NOT in effect. Only half of your capital gain is added to your taxable income.

How do I calculate capital gains tax in Canada?

Subtract your adjusted cost base (purchase price + eligible expenses) and selling costs from your proceeds of disposition. Apply the 50% inclusion rate to the net gain. Add the taxable portion to your other income and compute the additional federal + provincial tax at your marginal rate. This calculator does it all in one click.

Do I pay capital gains tax when I sell my primary residence?

No. The Principal Residence Exemption (PRE) shields 100% of the gain on your primary home from capital gains tax in most cases. Only properties you rented out or used partially for business may face a taxable portion.

Is the capital gains inclusion rate changing in 2026?

No — for individual filers, the rate remains 50% for 2026. The federal government proposed raising it to 66.67% for gains above $250,000 in Budget 2024, but that increase has been deferred multiple times and was ultimately cancelled as of March 2025. All individual capital gains in 2026 use the flat 50% inclusion rate.

Share:
Helpful?

About This Tool

This free Capital Gains Tax Calculator for Canada 2026 helps you estimate the federal and provincial tax you’ll owe when you sell investments, real estate, or other capital property. Simply enter your proceeds, adjusted cost base (what you paid), selling costs (commissions, legal fees, brokerage fees), and your other taxable income for the year. The calculator applies the current 50% capital gains inclusion rate and your combined marginal tax rate — including the provincial/territorial brackets — to give you an accurate estimate of your tax liability.

How to Use

  1. Select your province or territory from the dropdown. Each province has unique marginal tax brackets that affect your total capital gains tax.
  2. Enter the proceeds from the sale — this is the total amount you received for the property or investment.
  3. Enter the adjusted cost base (ACB), which is generally the original purchase price plus any eligible acquisition costs like legal fees, survey costs, or broker commissions.
  4. Enter any selling costs you incurred — real estate commissions, legal fees on the sale, brokerage fees, or transfer taxes.
  5. Enter your other taxable income for the year (salary, self-employment, rental income, etc.) so the calculator can determine your marginal tax rate.
  6. Click Calculate to see your net capital gain, the taxable portion (50% inclusion rate), estimated federal and provincial tax owed, and your after-tax proceeds.

Frequently Asked Questions

What is the capital gains inclusion rate for 2026 in Canada?

The 2026 capital gains inclusion rate is 50% for individual filers on every dollar of gain. The proposed 66.67% rate for gains above $250,000 (Budget 2024) was cancelled and is NOT in effect. Only half of your capital gain is added to your taxable income.

How do I calculate capital gains tax in Canada?

Subtract your adjusted cost base (purchase price + eligible expenses) and selling costs from your proceeds of disposition. Apply the 50% inclusion rate to the net gain. Add the taxable portion to your other income and compute the additional federal + provincial tax at your marginal rate. This calculator does it all in one click.

Do I pay capital gains tax when I sell my primary residence?

No. The Principal Residence Exemption shields 100% of the gain on your primary home from capital gains tax in most cases. Only properties you rented out or used partially for business may face a taxable portion.