Capital Gains Tax Calculator

Calculate the tax on your investment gains. Canada's 50% inclusion rate means only half your capital gain is added to your taxable income.

Capital Gain Details

Capital Gain Amount (CAD)

Other Income This Year (CAD)

Province / Territory

Tax Year

Qualified Small Business Shares (LCGE eligible)

Capital Gains Tax Summary

Capital Gain$50,000

Inclusion Rate50.0%

Taxable Portion (before LCGE)$25,000

Taxable Gain (after LCGE)$25,000

Tax on Capital Gain$7,413

Effective Rate on Gain

15.0%

Combined Marginal Rate

29.6%

How it works: Only 50% of your capital gain is included in your taxable income. This "taxable gain" is then taxed at your marginal rate. The Lifetime Capital Gains Exemption (LCGE) of $1,250,000 applies only to qualified small business corporation shares and qualifying farm/fishing property.

Capital Gains Tax in Canada

Canada taxes only 50% of capital gains — the "inclusion rate." The taxable half is added to your other income and taxed at your marginal rate.

Lifetime Capital Gains Exemption (LCGE): Up to $1,250,000 of gains from qualified small business corporation (QSBC) shares are exempt. Farm and fishing property also qualify.

Principal Residence Exemption: Gains on your principal residence are fully exempt. This calculator does not apply this exemption — enter only non-principal-residence gains.