Canadian Capital Gains Tax in 2026
The inclusion rate stays at 50%. Here is the full timeline of the 2024 Budget proposal, the 2025 reversal, and a side-by-side calculator for what you would have paid.
The 2024 → 2026 timeline
- • 2024-04-16: Federal Budget proposes raising the inclusion rate to 66.67% on individual gains above $250,000 per year (corporations and trusts: 66.67% on every dollar). Effective date: 2024-06-25.
- • 2024-06-25: New rate takes effect under draft legislation. CRA confirms its administrative position to apply the higher rate.
- • 2024-12: Notice of Ways and Means tabled in Parliament but not passed before prorogation.
- • 2025-01-31: Department of Finance announces a deferral of the proposal to 2026-01-01.
- • 2025-03-21: Finance Minister announces the proposal is scrapped entirely.
- • 2025–2026: 50% inclusion rate applies. CRA issues reassessments for 2024 returns that used 2/3.
What would you have paid?
Final rule (50% inclusion)
$83,638 tax
Taxable gain $200,000 · Effective rate 41.8%
This is the actual rule that applies for 2025 and 2026.
Scrapped proposal (2/3 above $250k)
$95,178 tax
Taxable gain $225,000 · Effective rate 42.3%
What you would have paid under the 2024 Budget proposal (announced 2024-04-16, scrapped 2025-03-21).
You save
$11,540
vs the scrapped proposal
If you filed your 2024 return at the 2/3 rate
CRA processes automatic reassessments to refund the difference between the 2/3 rate and the 50% rate. If you have not received a reassessment by mid-2025, you can request one through your CRA My Account or by filing form T1-ADJ. Interest is paid on the overpayment from the original filing date.
What about corporate and trust gains?
The proposed 2/3 inclusion rate on corporate and trust gains was also scrapped. Corporate capital gains continue to use the 50% inclusion rate in 2025 and 2026, with the taxable portion flowing through the Capital Dividend Account at the non-taxable half.
Related calculators
The headline 50% rate is the input to several decisions: pre-emptive tax-loss selling, LCGE planning for qualified small business shares, and timing of gains around the calendar year. See the Tax-Loss Selling Calculator and the LCGE Calculator for those tools.