How to use the capital gains tax calculator
- 1 Enter the sale price minus selling costs.
- 2 Enter the adjusted cost base.
- 3 Enter your other taxable income.
- 4 Choose your province and read the tax.
Worked example
Selling shares for $60,000 that cost $40,000, with $80,000 of other income in Ontario. The gain is $20,000, so $10,000 is added to income. Tax on the gain is about $2,965, roughly 14.8% of the gain. If the same shares were held in a TFSA, the whole gain would be tax-free.
Reporting gains and paying less
- Inclusion rate: half of a capital gain is taxable. The proposed increase to two thirds was cancelled in 2025.
- Your home: the principal residence exemption usually covers it, but you must still report the sale and designation on Schedule 3 of your return.
- Losses: capital losses offset gains and can be carried back three years or forward indefinitely. Watch the superficial loss rule if you buy back within 30 days.
- Shelters: gains inside a TFSA are never taxed, and those inside an RRSP or FHSA are not taxed when they happen.
Check how much TFSA room you have with the TFSA Room Calculator. Retired? A large gain can trigger the OAS clawback.
Features
50% inclusion
Only half the gain is taxable.
Your real rate
Taxed at your 2026 federal and provincial rates.
What you keep
Net gain after tax.
When to use it
Selling shares
Estimate tax before selling. Shelter future gains with the TFSA Room Calculator.
Cottages and rentals
Plan for a property sale. Retired? Check the OAS Clawback Calculator.
Timing
Compare selling in a lower-income year. See your rate with the Income Tax Calculator.
Tax-loss selling
See how losses could offset gains. An RRSP deduction can offset it; see the RRSP Calculator.
Related Tax tasks
Frequently asked questions
How are capital gains taxed in Canada?
Half of the gain, the taxable capital gain, is added to your income and taxed at your marginal rate.
Did the inclusion rate go up?
No. A proposed increase to two-thirds was cancelled in 2025, so the rate stays at 50%.
Is my home taxed?
Your principal residence is usually exempt.
What is adjusted cost base?
What you paid plus costs such as commissions, legal fees and capital improvements.
Can losses offset gains?
Capital losses offset capital gains. Unused losses carry back three years or forward.
What is the lifetime capital gains exemption?
Up to $1,275,000 in 2026 for qualifying small business shares and farm or fishing property.
Is crypto taxed as capital gains?
Usually, yes, when you sell or trade crypto as an investment. Frequent trading can be treated as business income, which is fully taxed.
When is the tax due?
With your tax return for the year of the sale, by 30 April of the next year.
Do I pay CPP on capital gains?
No. Capital gains are not earnings for CPP or EI.
Can I spread a large gain over several years?
If you are paid over time, a capital gains reserve can spread the gain over up to five years.
What about a rental property?
Selling a rental creates a capital gain on the increase in value, and any recaptured depreciation is taxed in full as income.
Do I pay tax when I give shares away?
Usually yes. Gifting shares to anyone other than a spouse is treated as selling them at market value. Donating listed shares to charity can remove the tax.
What is a superficial loss?
If you sell at a loss and buy the same shares back within 30 days, the loss is denied for tax.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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