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 (proposed) | All gains | 66.67%* | Varies |
| Principal Residence | Any amount | 0% (exempt) | $0 |
| QSBC Shares (LCGE) | Up to $1.25M lifetime | 0% (exempt) | $0 |
*Corporate 66.67% rate is proposed legislation as of 2026. The individual rate increase was cancelled (Carney government, April 2025). 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 $1,250,000 (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.