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

For individuals, the first $250,000 of capital gains per year is included at 50% (one-half). Capital gains above $250,000 are included at 66.67% (two-thirds). This two-tier structure took effect June 25, 2024 and applies for the full 2025 tax year.

How do I calculate capital gains tax in Canada?

Capital gain = Proceeds of disposition minus Adjusted Cost Base (ACB). Multiply the gain by the inclusion rate (50% for first $250K, 66.67% above) 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.

Does the $250,000 capital gains threshold reset every year?

Yes. The $250,000 threshold at the 50% inclusion rate applies annually per individual. Each calendar year, the first $250,000 of capital gains qualifies for the lower 50% inclusion rate. There is no carry-forward of unused threshold room.

Capital Gains Tax Calculator Canada 2025

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Capital Gains Tax Calculator

Uses 2025 two-tier inclusion rate (50% / 66.67%). 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 Change: As of June 25, 2024, individuals pay a 66.67% inclusion rate on capital gains exceeding $250,000 per year (up from 50% on all gains). The first $250,000 per year remains at the 50% inclusion rate.

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
First $250,000 of gains: 50% included in income (one-half)
Gains above $250,000: 66.67% included in income (two-thirds)
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.