What is the capital gains inclusion rate in Canada for 2025?

The capital gains inclusion rate in Canada for 2025 is 50% (one-half) on all capital gains, for all taxpayers. A proposed two-tier increase to 66.67% above $250,000 was cancelled by PM Carney on March 21, 2025 and was never enacted into law.

How do I calculate capital gains tax in Canada?

Capital gain = Proceeds of disposition minus Adjusted Cost Base (ACB). Multiply the gain by the 50% inclusion rate to get the taxable capital gain. Add this to your other income and apply your combined federal + provincial marginal tax rate to find the tax owing.

Was the 66.67% capital gains inclusion rate enacted?

No. The proposed increase to 66.67% on capital gains above $250,000 was cancelled on March 21, 2025. The inclusion rate remains 50% on all capital gains for all individuals and corporations in Canada.

Capital Gains Tax Calculator Canada 2025

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Capital Gains Tax Calculator

Uses the 2025 flat 50% inclusion rate. For individuals only. Assumes the capital gain is your only significant income change — actual tax depends on your full return. Consult a tax professional before filing.

Province / Territory

Other Annual Income ($) Employment, business, etc. before this gain

Proceeds of Disposition ($)

Adjusted Cost Base / ACB ($) Your original purchase price + costs

Estimated Capital Gains Tax

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2025 Inclusion Rate: The capital gains inclusion rate for 2025 is 50% on all capital gains for all taxpayers. A proposed increase to 66.67% on gains above $250,000 was cancelled by PM Carney on March 21, 2025 and was never enacted into law.

What Is a Capital Gain?

A capital gain arises when you sell a capital property (stocks, real estate, investment property, business assets) for more than you paid for it. The gain is the difference between the proceeds and your Adjusted Cost Base (ACB).

How Capital Gains Tax Works in Canada (2025)

Capital gain = Proceeds − Adjusted Cost Base
50% of the capital gain is included in taxable income (one-half)
This flat 50% rate applies to all capital gains, regardless of amount
Taxable portion added to your other income
Tax calculated at your combined marginal rate for that income

What Is Adjusted Cost Base (ACB)?

The ACB is your total cost of acquiring a property, including the purchase price, commissions, legal fees, and improvements. For stocks, ACB includes all purchases and reinvested dividends. Accurate ACB tracking is critical for correct capital gains reporting.

Principal Residence Exemption

If you sell your principal residence, the entire gain may be exempt from tax under the Principal Residence Exemption. You must designate the property as your principal residence for each year you own it. This calculator does not apply the PRE — consult an accountant if selling your home.

Capital Losses

Capital losses can offset capital gains in the same year. Unused losses can be carried back 3 years or forward indefinitely to offset future gains.

Capital Gains Tax Calculator Canada

What Is a Capital Gain?

How Capital Gains Tax Works in Canada (2025)

What Is Adjusted Cost Base (ACB)?

Principal Residence Exemption

Capital Losses

Selling an Asset? Plan Before You File.