Capital Gains Tax Calculator Canada 2026: Tax by Province

Estimate the tax on a capital gain from selling shares, ETFs, crypto, a cottage or a rental property in 2026. In Canada only half of a capital gain is taxable, and that half is added to your income for the year. If you earn $80,000 in Ontario and sell shares for $60,000 that cost you $40,000, the $20,000 gain adds $10,000 to your taxable income and about $2,965 to your tax, which is 14.8% of the gain.

How capital gains are taxed in Canada

• Capital gain = selling price minus your adjusted cost base (what you paid, including buying costs) minus selling costs.
• Inclusion rate: 50% of the gain is taxable. The proposed increase to two-thirds for gains above $250,000 was cancelled in March 2025, so the one-half rate still applies in 2026.
• Tax rate: the taxable half is taxed at your normal federal and provincial rates, so the effective rate on the whole gain is half of your marginal rate.
• Timing: the gain is taxed in the year you sell, and you report it on Schedule 3 of your return.
• Lifetime capital gains exemption: gains on qualified small business shares and qualified farm or fishing property can be sheltered up to $1.25 million, an increase the government kept when it cancelled the inclusion rate change.

Top marginal tax rates on capital gains in 2026

Examples

Your home and other special cases

• Principal residence: if the home was your principal residence for every year you owned it (or every year but one), the gain is usually tax-free, but you must still report the sale and designation.
• Flipping rule: a home sold within 365 days of purchase is generally treated as business income, fully taxable, unless a life event such as a death, divorce or new job applies.
• TFSA and RRSP: gains inside a TFSA, RRSP or FHSA are not taxed as capital gains when you sell.
• Capital losses: half of a loss is an allowable capital loss. It can reduce taxable capital gains of the current year, the three previous years or any future year, but not your salary.

Watch out for side effects

Because the taxable half of a gain raises your net income, a large gain can trigger the OAS clawback, raise the Ontario Health Premium, reduce income-tested benefits for the following year and, for very large gains, bring the alternative minimum tax into play. Spreading sales over two calendar years or selling in a low-income year can lower the total tax.

FAQ

Is the capital gains inclusion rate going up in 2026?

No. The increase to two-thirds was first delayed to January 1, 2026 and then cancelled on March 21, 2025. Capital gains are still 50% taxable.

Do I pay capital gains tax on crypto?

Yes, if you hold crypto as an investment, selling it, swapping it for another coin or spending it is a disposition, and half of the gain is taxable. Frequent trading can instead be treated as business income.

When do I pay the tax?

When you file your return for the year of the sale, by April 30 of the next year. If you will owe more than $3,000 of tax that isn’t withheld, the CRA may ask you to pay instalments.

Related calculators

• OAS Clawback CalculatorGains can trigger the recovery tax
• TFSA Contribution Room CalculatorInvest without capital gains tax
• Canada Income Tax Calculator 2026Tax and take-home pay on your salary

Sources

• Prime Minister of Canada: Proposed capital gains tax increase cancelled (March 21, 2025) · LCGE kept at $1.25 million
• CRA: Administration of the capital gains inclusion rate of one-half
• CRA: Guide T4037, Capital Gains 2025 · principal residence, flipping rule, capital losses
• CRA: Tax rates and income brackets for 2026
• CRA: T4127 Payroll Deductions Formulas, 123rd edition (July 1, 2026) · 2026 provincial rates and credits
• Finances Québec: Parameters of the personal income tax system for 2026