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Canada Capital Gains Tax Calculator

Estimate how much tax you owe when you sell stocks, ETFs, real estate, or crypto in Canada — and how much you actually keep after tax. Works for all provinces, all account types.

Last updated: May 2026 · Based on 2025 CRA rules (50% inclusion rate)

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Estimated Tax Summary

Capital gain

$1,000

Taxable amount (50%)

$500

Marginal tax rate

33%

Tax owing

$165

Sale proceeds$6,000
Minus cost base (ACB)− $5,000
Capital gain$1,000
× 50% inclusion rate$500 taxable
× Marginal tax rate33%
Tax owing$165
After-tax gain (you keep)$835

How Capital Gains Tax Works in Canada

Canada doesn’t have a separate “capital gains tax.” Instead, a portion of your capital gain is added to your regular income for the year and taxed at your normal marginal rate. The key lever is the inclusion rate — currently 50% for individuals — which means only half of your gain is ever taxable. The other half is completely tax-free.

The trigger point is the sale of the asset, not when the money arrives in your bank account. The moment you sell shares or close a position, you have a realized capital gain (or loss), regardless of where the proceeds sit.

1

Calculate your gain: Sale proceeds minus your Adjusted Cost Base (ACB) — your original purchase price plus commissions and any associated acquisition costs.

2

Apply the 50% inclusion rate: Only half of the gain counts as taxable income. If you made $10,000, only $5,000 is added to your income for the year.

3

Tax it at your marginal rate: That $5,000 is stacked on top of your other income. Combined federal + provincial rates range from roughly 20% to 54%, depending on your province and total income.

4

Report and pay: Capital gains are reported on your annual tax return (T1), due April 30 of the following year. You don’t make installment payments for a one-time gain.

Worked Example — BC Resident

You bought 100 shares of a Canadian bank stock at $50/share ($5,000 total). You sell them for $70/share ($7,000). Your other income this year is $85,000.

Capital gain: $7,000 − $5,000 = $2,000

Taxable portion (50%): $1,000 added to income

Marginal rate (BC, ~$86,000 total income): approximately 38.29%

Tax owing: $1,000 × 38.29% = ~$383 — you keep $1,617 of the $2,000 gain.

Account Type Changes Everything

Where you hold your investment determines whether you pay any tax at all. The same stock, sold for the same gain, produces very different tax outcomes depending on the account.

Account Tax on growth Tax on withdrawal Best for
Non-Registered Capital gains taxed annually (50% inclusion) No additional tax Overflow after maxing registered accounts
TFSA Tax-free ✓ Tax-free ✓ Stocks, ETFs, high-growth assets — best overall
RRSP Tax-deferred ✓ Fully taxed as income ✗ High earners who expect lower income in retirement
FHSA Tax-free ✓ Tax-free (for qualifying home purchase) ✓ First-time home buyers only

The general priority for most Canadians: fill your TFSA first (for growth assets), then RRSP (if your current tax rate is meaningfully higher than retirement), then non-registered. This sequencing alone can save tens of thousands in lifetime taxes.

Key Rules to Know

Capital losses offset capital gains

If you sell an investment at a loss, that loss can offset gains in the same year dollar-for-dollar. Unused losses can be carried back three years or forward indefinitely. This makes year-end “tax loss harvesting” a common strategy among Canadian investors.

The Adjusted Cost Base (ACB) matters

Your ACB is not just the purchase price. For stocks bought in multiple lots, the CRA requires you to use a weighted average ACB across all shares of that security. Commissions and transaction fees also add to the ACB, reducing your eventual gain. Tracking ACB carefully can meaningfully reduce the tax you owe.

When you pay

Capital gains realized in a calendar year are reported on your T1 return, due April 30 of the following year. If you owe more than $3,000 in taxes above what’s withheld at source, the CRA may require you to make quarterly installment payments in future years.

The 2025 inclusion rate is confirmed at 50%

The federal government proposed raising the inclusion rate to 66.67% on gains above $250,000 in 2024, but the measure was cancelled in March 2025. The 50% rate applies to all individual capital gains for 2025 and 2026, with no threshold split.

Frequently Asked Questions

Do I pay tax when I transfer money from my brokerage to my bank account?
No. The taxable event is the sale of the investment, not the transfer of cash. Once you’ve sold and the gain is realized, the money can sit in your brokerage account or move to any bank account — no additional tax applies to the transfer itself.
What if I sell at a loss — do I get a refund?
A capital loss doesn’t directly trigger a refund, but it reduces your taxable capital gains. If your losses exceed your gains this year, you can carry the net loss back to offset gains in any of the previous three tax years (and potentially get a refund), or carry it forward to future years.
Is crypto taxed the same as stocks in Canada?
For most investors, yes — the CRA treats cryptocurrency as capital property, subject to the same 50% inclusion rate and marginal tax rules as stocks. However, if you trade crypto frequently enough that the CRA deems it a business activity, gains may be fully taxable as business income.
My investment is in a TFSA. Do I still need to report anything?
No. Capital gains inside a TFSA are completely exempt from income tax and do not need to be reported on your tax return. This is one of the key advantages of the TFSA — growth compounds tax-free regardless of how often you buy or sell.
How does selling my home work — is that a capital gain?
If the home was your principal residence for every year you owned it, the entire gain is tax-free under the Principal Residence Exemption. If you owned the property for some years as an investment property (rental), or it was a secondary property like a cottage, the gain on those years may be partially or fully taxable.

Deciding where to hold your investments?

Compare the best TFSA rates, HISA rates, and GIC rates in Canada to find the highest return for your savings.

Best GIC Rates Compare Savings Rates

Disclaimer: This calculator is for estimation purposes only and does not constitute financial or tax advice. Tax results are approximations based on 2025 CRA rules and published provincial marginal rates. Your actual tax liability depends on your full income picture, deductions, credits, carryforward losses, and other factors. Consult a qualified Canadian tax professional before making financial decisions.