Canada Capital Gains Calculator
Calculate Canadian capital gains tax with the 50% inclusion rate. Includes principal residence exemption and estimates tax at your marginal rate.
Property or Investment Sale
Capital Gain Calculation
Tax on Capital Gain
Net Proceeds
Capital Gains Information
Capital Gains Inclusion Rate
In Canada, only 50% of capital gains are included in your taxable income. You are taxed on the 50% inclusion, not the full gain. This applies to all capital gains as of March 2025.
Principal Residence Exemption
If you designate a property as your principal residence (the home where you normally live), the entire capital gain is exempt from tax. Each person can only designate one property per year.
Reporting to CRA
You must report capital gains on your tax return even if you do not owe tax. Use Form T776 for rental properties or Schedule 3 for other capital gains.
Costs to Deduct
You can reduce your capital gain by eligible expenses: real estate commission, legal fees, transfer taxes, inspection costs, and home improvements (but not maintenance).
Disclaimer: This calculator is for estimation only and does not include acquisition costs, sale fees, or eligible deductions that could reduce your gain. The 50% inclusion rate applies as of March 2025. For investment properties, rental income considerations, and complex situations, consult the Canada Revenue Agency (CRA) website or a tax professional. Your actual tax liability may differ.
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