Canada Capital Gains Tax Calculator
2026 tax on a capital gain in any province or territory: the 50% inclusion rate added to your other income, federal and provincial tax, marginal and effective rates, the principal residence and $1,275,000 lifetime exemptions, the 5-year reserve and a province-by-province comparison.
How it works
capital gain = proceeds − ACB − selling costs; taxable gain = 50% × (gain − principal residence exemption − capital losses − lifetime exemption); tax = income tax(other income + taxable gain) − income tax(other income), using 2026 federal and provincial brackets and credits; principal residence exemption = gain × (1 + years designated) ÷ years owned
Canada taxes half of a capital gain as ordinary income at your federal and provincial marginal rates, so the effective rate on a gain is about half your marginal rate — from roughly 10% at low incomes to about 27% at the top in Ontario. The calculator works out your 2026 income tax with and without the taxable half of the gain, using the 2026 brackets and credits for all 13 provinces and territories, so the answer reflects exactly which brackets the gain pushes you through. The proposal to raise the inclusion rate to two-thirds on gains over $250,000 was cancelled in 2025, so 50% applies to every dollar. Capital losses offset gains, and unused net capital losses carry back three years and forward indefinitely. A home designated as your principal residence for every year you owned it (plus one bonus year) is exempt; otherwise the exempt share is (1 + designated years) ÷ years owned. Sales of qualified small business shares and farm or fishing property can use the lifetime capital gains exemption, $1,275,000 in 2026. If you are paid over several years you can claim a reserve and spread the gain over up to five years, which can keep it in lower brackets.
Worked example
Selling shares for $150,000 with a $90,000 cost base, with $80,000 of other income in Ontario: the $60,000 gain adds $30,000 of taxable income. In 2026 that costs $9,225 of extra tax — $6,150 federal (20.5%) and $3,075 Ontario (9.15% and 11.16%, plus the Ontario surtax on the last part) — 15.4% of the gain. In Alberta, a $20,000 gain on top of $80,000 of income adds $10,000 of taxable income taxed at 20.5% federal + 10% provincial = $3,050, an effective 15.25%.
Sources: CRA — Canadian income tax rates for individuals, current year (2026) · CRA — Indexation adjustments for 2026 (lifetime capital gains exemption $1,275,000, OAS threshold $95,323) · CRA — Capital gains (T4037 guide) · CRA — Principal residence and other real estate
Frequently asked questions
What is the capital gains inclusion rate in 2026?
50%. Half of your net capital gain is added to income and taxed at your normal rates. The planned increase to two-thirds for gains over $250,000 was cancelled in March 2025 and never took effect.
Are crypto and US stocks taxed the same?
Yes — as capital gains in Canadian dollars (unless you trade so often that it is business income). For US stocks and crypto bought in US dollars, convert the cost and the proceeds at the exchange rates on the purchase and sale dates.
What about a cottage or rental property?
Only one property per family can be the principal residence for each year. A rental is fully taxable; a cottage can be designated for some years, and the exemption is then (1 + designated years) ÷ years owned. Choose “Home (principal residence)” to see the split.
How do capital losses work?
Losses offset gains at the same 50% rate. Enter losses at their full amount and the calculator subtracts them before halving. A net loss for the year can be carried back three years or forward indefinitely, but it cannot reduce salary or other income.
What is the lifetime capital gains exemption?
It shelters gains on qualified small business corporation shares and qualified farm or fishing property — up to $1,275,000 in 2026 over your lifetime. Using it can trigger the alternative minimum tax, so check AMT before you sell.
Related calculators
Uses 2026 tax-year federal, provincial and territorial figures (CRA T4127, CRA 2026 rates and indexation, Revenu Québec). Educational estimate, not tax advice — it ignores AMT and most credits; confirm with CRA, Revenu Québec or a tax professional.