Capital Gains Tax Calculator Canada 2026
Estimate capital gains tax on stocks, investment property, or business assets using the 2026 CRA 50% inclusion rate and provincial tax brackets.
2026 Capital Gains Inclusion Rate
| Taxpayer | Gain Amount | Inclusion Rate 2026 | Effective Top Rate (ON) |
|---|---|---|---|
| Individuals | Any amount | 50% | ~26.77% |
| Corporations | All gains | 50% | Varies |
| Principal Residence | Any amount | 0% (exempt) | $0 |
| QSBC Shares (LCGE) | Up to $1.275M lifetime | 0% (exempt) | $0 |
The proposed increase to a 66.67% inclusion rate was cancelled by the federal government on March 21, 2025 and never became law. Individuals, corporations, and trusts all remain at the 50% inclusion rate. Confirm with your accountant before filing.
How Capital Gains Tax Works in Canada
Canada does not have a separate capital gains tax rate. Instead, a portion (the inclusion rate) of your capital gain is added to your regular income and taxed at your marginal rate. For individuals in 2026, only 50% of a capital gain is taxable — the other 50% is entirely tax-free.
Your capital gain is: proceeds − ACB − selling costs. The ACB includes the original purchase price plus commissions, legal fees, and for real estate, the cost of capital improvements. Keeping detailed ACB records is critical — the CRA can reassess your gain if you cannot substantiate it.
The sale of your principal residence is generally completely tax-free regardless of the gain size. You must still report the sale on Schedule 3 and file Form T2091 — failure to report can result in the CRA denying the exemption.
The LCGE shelters up to $1,275,000 (2026) in capital gains from selling qualifying small business corporation shares, qualified farm, or qualified fishing property. This is a lifetime cumulative limit — consult a tax lawyer before structuring any business sale.