50% inclusion rate
Capital Gains Tax Calculator Canada 2026
Estimate the tax on a capital gain from selling shares, a rental property or a cottage, based on your income and province.
Official 2026 rates, verified October 9, 2026
How capital gains are taxed
Only half of a capital gain is taxable in 2026. That taxable half is added to your other income and taxed at your combined federal and provincial rates, so the tax depends on your income and province. A large gain can push part of it into higher brackets, which the calculator accounts for.
Frequently asked questions
What is the capital gains inclusion rate in 2026?
50%. Half of a capital gain is added to your taxable income. A planned increase to two-thirds was cancelled in March 2025.
How is capital gains tax calculated in Canada?
Subtract the adjusted cost base (what you paid, plus costs) from the sale price. Half of that gain is taxed at your marginal rate, along with your other income.
Do I pay capital gains tax when I sell my home?
Usually not. The principal residence exemption generally covers a home you lived in for every year you owned it. Rental and vacation properties are taxable.
Can capital losses reduce the tax?
Yes. Capital losses offset capital gains in the same year, and unused losses can be carried back three years or forward indefinitely against future gains.
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All rates and amounts on this page are taken from official government sources, including the Canada Revenue Agency, Revenu Québec and provincial and territorial finance ministries. Last verified October 9, 2026.