Capital Gains Tax (CGT) Calculator
Capital Gains Tax is the tax you pay on the profit made when you sell an asset for more than you bought it. In Canada, only 50% of your capital gain is taxable, and it's added to your income for the year.
What is a Capital Gain?
A capital gain happens when you sell a capital asset - such as stocks, real estate, or business assets - at a higher price than you paid for it. Conversely, if you sell it for less than you paid, it's a capital loss.
You are only taxed when the gain is realized (i.e., when you sell the asset), not while it's increasing in value.
Capital Gains Tax Calculator
Capital Gain
$95,000.00
Taxable Gain (50%)
$47,500.00
Estimated Tax Payable
$25,426.75
After-Tax Gain
$69,573.25
Inputs
Estimated Tax Payable
$25,426.75
Effective tax on your gain: 26.77%
Estimates are for reference only and use a 50% inclusion rate. Confirm your marginal rate and any exemptions with a tax professional.
How to Use a Capital Gains Calculator
Step 1
Enter your purchase price and selling price.
Step 2
Add selling costs (e.g., legal fees, commissions).
Step 3
Enter your marginal tax rate or select your province.
Step 4
The calculator will display your taxable gain and estimated tax payable.
How Your Gains Affect Your Taxes
Both gains and losses change what you ultimately owe. Here's how they move your tax bill:
What's Taxed and What's Not
Taxable
- Real estate that's not your principal residence (e.g., rental properties).
- Investments like stocks, ETFs, mutual funds, and crypto assets.
- Business asset sales.
Exempt or Partially Exempt
- Your principal residence (primary home).
- Certain small business shares and qualified farm/fishing property (with lifetime exemption limits).
Quick Tips to Manage Capital Gains
Time your sales
Selling in a lower-income year can reduce taxes.
Offset with losses
Use capital losses to balance gains.
Keep records
Maintain documentation of purchase costs, improvements, and fees.
Consider exemptions
Confirm if your property or business qualifies for special treatment.