Capital Gains Tax Calculator Canada 2025
Calculate capital gains tax on investments, real estate, and plan tax-efficient strategies. 50% inclusion rate with federal and provincial tax brackets.
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How to Use This Calculator
Tab "Investment Gains"
Enter your sale proceeds, adjusted cost base (ACB), and other taxable income. The calculator shows your capital gain, the 50% taxable portion, and the federal and provincial tax payable. Under "More options," add selling expenses, change province, or apply the Lifetime Capital Gains Exemption for qualifying small business shares or farm property.
Tab "Real Estate"
Enter the sale price, original purchase price, and years owned. Set the years you designated the property as your principal residence to calculate the PRE. Under "More options," add capital improvements and selling costs to reduce the taxable gain. The calculator shows the exempt portion and tax on any remaining gain.
Tab "Tax Planning"
Enter your expected capital gain, annual income, and province. The calculator compares three scenarios: realizing the full gain in one year, splitting it over multiple years, and using RRSP contributions to offset the taxable income. See how much you could save with each strategy.
The Formulas
Capital gain = Proceeds of disposition - Adjusted cost base - Selling expenses
Taxable capital gain:
Taxable capital gain = Capital gain ร 50% (inclusion rate)
Tax on capital gain:
Tax = Tax on (Regular income + Taxable gain) - Tax on (Regular income)
2025 federal brackets:
$0 - $57,375: 14.5% (blended)
$57,375 - $114,750: 20.5%
$114,750 - $158,468: 26%
$158,468 - $220,000: 29%
$220,000+: 33%
Principal residence exemption:
Exempt gain = Total gain ร (1 + years designated) รท years owned
If years designated = years owned โ 100% exempt
Adjusted cost base (ACB) for identical shares:
ACB per share = Total cost of all purchases รท Total shares held
Lifetime Capital Gains Exemption (2025):
QSBC shares: $1,250,000 lifetime limit
Farm/fishing property: $1,250,000 lifetime limit
All rates based on CRA schedules for the 2025 tax year (calendar year). Capital gains inclusion rate is 50% following the cancellation of the proposed increase. Provincial tax varies โ the calculator uses approximate 2025 provincial brackets.
Example
David โ Software Developer in Ontario, Sells $50,000 in ETFs
David sells ETF units for $50,000 that he purchased for $30,000. He has $80,000 in employment income. Ontario resident.
David's $20,000 capital gain results in only $10,000 being added to his taxable income (50% inclusion). At his combined marginal rate of about 29.65%, he pays $2,965 in tax on the gain โ an effective rate of 14.8% on the full $20,000 gain. The remaining $17,035 is his after-tax profit.
2025 Capital Gains Tax Rates
| Item | Rate / Limit |
|---|---|
| Inclusion rate | 50% |
| Basic personal amount (federal) | $16,129 |
| Lowest federal bracket | 14.5% blended (up to $57,375) |
| Highest federal bracket | 33% (over $220,000) |
| LCGE โ QSBC shares | $1,250,000 |
| LCGE โ farm/fishing | $1,250,000 |
| Principal residence exemption | Full if designated all years + 1 |
| Superficial loss rule | 30 days before/after |
| Capital loss carryback | 3 years |
| Capital loss carryforward | Indefinite |
| Reporting | Schedule 3, T1 return |