Canada doesn't tax the full gain — only half is included in your taxable income, at your marginal rate.
When you sell an asset for more than you paid, only 50% of the gain is added to your taxable income. If you're in the 30% marginal bracket, your effective tax rate on the gain is about 15%.
Gains on the sale of your principal residence are generally fully tax-exempt — one of the most valuable tax breaks available to Canadian homeowners, provided the property was your primary home for every year you owned it.
Capital losses can only offset capital gains (not other income), but can be carried back 3 years or forward indefinitely.
Calculate your exact capital gains tax.
Use the Capital Gains Tax Calculator →The inclusion rate has been the subject of proposed federal budget changes in recent years. Verify the current rate with the CRA before filing.