Enter what you sold for, what it cost you, and your other income to see the tax on the gain — computed as the real difference in your tax bill, not a flat rate, so bracket changes and provincial surtaxes are captured. The inclusion rate is 50% for the 2025 tax year; the proposed two-thirds increase was cancelled.
Your sale
How it works. Proceeds minus adjusted cost base is the capital gain. Half of it (50%) is added to your taxable income, stacked on top of everything else you earned this year. The tax shown is the difference between your bill with and without that slice — so it reflects the actual brackets, Ontario’s surtax and Quebec’s abatement, not a single assumed rate.
Estimated tax on the gain
$0
0% effective tax on the full gain
The inclusion rate is 50% — the proposed two-thirds increase was cancelled. Gains on a principal residence are usually exempt entirely and are not what this calculator models.
An estimate is a starting point. Get your real number.
This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.
- A professional tax accountant reviews your figures, not a formula
- Fixed quote before any work starts
- You pay after you approve the filing
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How capital gains are taxed in Canada
There is no separate capital gains tax rate. When you sell capital property — shares, a rental property, a cottage, crypto held as an investment — the gain is proceeds minus your adjusted cost base (purchase price plus buying and selling costs). Half of that gain is included in your taxable income and taxed at whatever marginal rates apply on top of your other income for the year. That stacking is why timing matters: the same gain costs more tax in a high-income year than in a low one, and a large gain can climb through several brackets on its own. The other half of the gain is yours tax-free.
Two reliefs do the heavy lifting in practice. The principal residence exemption usually wipes out the entire gain on the home you ordinarily live in. And capital losses — this year’s, or ones carried from other years — offset capital gains dollar for dollar before the inclusion rate is applied. The widely reported increase of the inclusion rate to two-thirds was cancelled; it remains 50%. Deciding what to sell, when, and against which losses is exactly the kind of question tax planning answers before the trade, not after.
What this calculator does not cover
It does not model capital gains reserves, which spread a gain over up to five years when the buyer pays you over time. It ignores the lifetime capital gains exemption on qualified small business corporation shares and qualified farm or fishing property, which can shelter a large gain entirely. And it is personal-tax math only — gains realized inside a corporation follow different rules, including the capital dividend account. If a sale like that is on your horizon, or you need the gain reported correctly, see our personal tax filing services.
| Step | Amount |
|---|---|
| Capital gain | $100,000 |
| Taxable at 50% | $50,000 |
| Tax in Ontario | ≈ $19,113 |
| Kept | ≈ $80,887 |
Rates reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
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Rates and method reviewed by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. He is Big 4 trained, at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia. In 2014 he founded his accounting practice to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
Sources. CRA — Businesses · Income Tax Act (Justice Laws Website)