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💰 Tax on Investment Sales

Capital Gains Tax Calculator Canada 2026

Selling stocks, ETFs, or property? Calculate exactly how much tax you owe using Canada's 50% inclusion rate and your provincial marginal rate.

Investment Sale Details

$
Total amount received from the sale
$
Original purchase price + commissions + reinvested dividends
$
Employment + other income — determines your marginal tax rate
50%
Capital Gains Inclusion Rate
Only 50% of your capital gain is added to your taxable income
Capital Gains Tax Owing
$0
on $25,000 capital gain in Ontario
Capital Gain
$0
Taxable Portion (50%)
$0
Marginal Rate
0%

Step-by-Step Calculation

1
Calculate the Capital Gain
$50,000 − $25,000 = $25,000
Sale proceeds minus your adjusted cost base
2
Apply the 50% Inclusion Rate
$25,000 × 50% = $12,500 taxable
Only half the gain is added to your income
3
Apply Your Combined Marginal Rate
$12,500 × 43.7% = $5,463 tax
Federal + provincial rate on the included amount
After-Tax Proceeds
$0
What you actually keep after paying tax on the gain

Capital Gains Tax in Canada

📊 How Capital Gains Tax Works

  • A capital gain occurs when you sell an asset for more than you paid
  • Canada taxes only 50% of the gain (the "inclusion rate")
  • The included portion is taxed at your marginal income tax rate
  • Capital losses can offset capital gains in the same year or be carried back 3 years / forward indefinitely

🏠 What Is Taxed?

  • Stocks, ETFs, mutual funds
  • Rental / investment properties
  • Cryptocurrency (treated as property)
  • Business assets
  • Not taxed: Your principal residence (Primary Home Exemption), TFSA gains, RRSP/RRIF gains (tax-deferred)

💡 How to Reduce Capital Gains Tax

  • Hold investments inside a TFSA — gains are 100% tax-free
  • Use an RRSP — gains are tax-deferred until withdrawal
  • Tax-loss harvest — sell losing positions to offset gains
  • Consider timing — realize gains in a lower-income year
  • Donate securities directly to charity — 0% capital gains rate

💡 Biggest tip: Invest inside your TFSA first. Any capital gains, dividends, or interest earned in a TFSA are completely tax-free — this calculator doesn't apply to TFSA investments. Learn more about TFSAs →