Capital Gains Calculator
Capital Gains Tax
Calculator 2025
Updated for the 2024 inclusion rate change. Handles the $250,000 threshold, all provinces, and principal residence exemption.
Updated for 2025 · Includes June 2024 inclusion rate change
Your capital gain details
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Sale price minus your adjusted cost base
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Employment or other income this year
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Tax Owed
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You Keep
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Effective Rate on Gain
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Taxable Gain
ℹ️ Estimates only. Actual tax depends on all income sources, deductions, and credits. Verify with a tax professional or CRA.
2025 Capital Gains Inclusion Rates
Canada changed the capital gains inclusion rate on June 25, 2024. Here's what applies in 2025:
The $250,000 threshold for individuals
Individuals pay 50% inclusion on the first $250,000 of net capital gains per year, and 2/3 (66.67%) on any amount above $250,000. Corporations and most trusts pay 2/3 on all gains — no threshold.
| Taxpayer | Gains up to $250k | Gains above $250k |
|---|---|---|
| Individual | 50% inclusion | 66.67% inclusion |
| Corporation | 66.67% inclusion | 66.67% inclusion |
| Most trusts | 66.67% inclusion | 66.67% inclusion |
Frequently Asked Questions
What is capital gains tax in Canada?
Canada doesn't have a separate capital gains tax. Instead, a portion of your capital gain (the "taxable capital gain") is added to your regular income and taxed at your marginal income tax rate. The inclusion rate determines what portion is added — 50% or 2/3 depending on your situation.
Does the $250,000 threshold reset every year?
Yes. The $250,000 annual threshold for individuals resets each calendar year. So if you have a $300,000 gain in 2025 and a $300,000 gain in 2026, each year's first $250,000 is at 50% inclusion — not cumulative.
What is the principal residence exemption?
If a property was your principal residence for every year you owned it, the entire capital gain is tax-free. You must designate it as your principal residence on your tax return. Only one property per family unit can be designated per year.
Can I use capital losses to offset gains?
Yes. Capital losses in the same year offset capital gains dollar for dollar. If your losses exceed your gains, the net capital loss can be carried back 3 years or forward indefinitely to offset capital gains in other years.
Are gains inside a TFSA or RRSP taxable?
No. Capital gains earned inside a TFSA are completely tax-free. Gains inside an RRSP are tax-sheltered until withdrawal, at which point they're taxed as regular income. The 2024 inclusion rate change has zero effect on registered accounts.