Canadian capital gains tax calculator
Enter your proceeds, cost base and other income. This includes one half of the gain, stacks it on top of your existing income so it can cross a bracket, and prices the same amount as interest beside it.
Worked example — Tax on the gain: $9,936. $150,000 proceeds, $90,000 cost base, $95,000 other income, Ontario's 11.16% rate
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Federal brackets are built in. Provincial and territorial brackets are not, so the provincial rate is yours to enter. Ontario and Prince Edward Island also levy surtaxes that this does not model, so treat the provincial half as an estimate and the federal half as exact.
2026 federal capital gains tax by bracket
The rate on a capital gain is simply the bracket rate halved, because one half of the gain is included in income. The lowest federal rate is 14% for 2026, down from 15%.
| Taxable income | Federal rate | Rate on a capital gain |
|---|---|---|
| $0 to $58,523 | 14.0% | 7.0% |
| $58,523 to $117,045 | 20.5% | 10.3% |
| $117,045 to $181,440 | 26.0% | 13.0% |
| $181,440 to $258,482 | 29.0% | 14.5% |
| Over $258,482 | 33.0% | 16.5% |
Is the capital gains inclusion rate two-thirds in Canada?
No, one half. The proposed two-thirds rate above $250,000 was deferred from June 2024 to January 2026 and then cancelled outright. It never took effect for any year. If a calculator or article you are reading applies 66.67% above $250,000, it is out of date and will overstate your tax substantially.
Capital gain vs interest: same dollar, different tax
The identical $60,000 of return, on top of the same $95,000 of other income, taxed two ways.
| Arrives as | Tax |
|---|---|
| Capital gain | $9,936 |
| Interest | $21,084 |
That gap, not the headline rate, is the argument for holding interest-bearing assets inside a TFSA or RRSP and leaving equities in a taxable account.
Capital gains tax rate by province
Federal tax is exact. Provincial tax uses the rate you enter; Ontario and Prince Edward Island also levy surtaxes this does not model, so treat the provincial half as an estimate.
| Province | Provincial rate used | Total tax on this gain |
|---|---|---|
| Ontario | 11.2% | $9,936 |
| British Columbia | 10.5% | $9,738 |
| Alberta | 10.0% | $9,588 |
This does not handle capital losses and their carryback, the principal residence exemption, the lifetime capital gains exemption, the superficial loss rule, or deemed dispositions on emigration or death. Next: hold the same question in a registered wrapper with the TFSA contribution room calculator.
Where these numbers come from
These official sources govern the figures and rules used on this page. They were re-verified on 9 August 2026. Registered-account and tax rules can change, so re-check the linked government guidance before acting.
- CRA — What is new for capital gains the one-half inclusion rate, and the cancellation of the proposed two-thirds rate
- Department of Finance Canada — deferral of the capital gains inclusion rate change the history of the two-thirds proposal that was later cancelled
- CRA — Canadian income tax rates for individuals, 2026 the 2026 federal brackets and 14% lowest federal rate
- Department of Finance Canada — 2026 Basic Personal Amount the 2026 Basic Personal Amount, from $16,452 to $14,829, and its income-based phase-down
This is general publishing, not tax advice, and it does not know your circumstances. Your own contribution room is on your CRA notice of assessment and in My Account, which is the number that governs.
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