Current Capital Gains Rates
2024-2026 Rules (Post June 25, 2024)
| Taxpayer Type |
Inclusion Rate |
| Individuals (first $250K/year) |
50% |
| Individuals (above $250K/year) |
66.67% |
| Corporations |
66.67% (all gains) |
| Trusts |
66.67% (all gains) |
Historical Rates
| Period |
Inclusion Rate |
| 2000-June 24, 2024 |
50% |
| June 25, 2024+ |
50%/66.67% tiered |
| Before 2000 |
75% |
How It Works
The $250,000 Threshold
| Your Annual Capital Gains |
Rate |
Taxable Amount |
| $100,000 |
50% |
$50,000 |
| $250,000 |
50% |
$125,000 |
| $300,000 |
50% on $250K, 66.67% on $50K |
$158,335 |
| $500,000 |
50% on $250K, 66.67% on $250K |
$291,675 |
Calculation Example
| Component |
Amount |
Calculation |
| Total capital gain |
$400,000 |
|
| First $250,000 |
$250,000 × 50% |
= $125,000 |
| Remaining $150,000 |
$150,000 × 66.67% |
= $100,005 |
| Total taxable |
|
$225,005 |
Tax Impact Examples
Individual with $300,000 Capital Gain
| Factor |
Amount |
| Capital gain |
$300,000 |
| First $250K × 50% |
$125,000 |
| Next $50K × 66.67% |
$33,335 |
| Taxable capital gain |
$158,335 |
| At 45% marginal rate |
$71,251 tax |
| Effective rate on gain |
23.8% |
Comparing Old vs New Rules
| Scenario: $500K Gain |
Old Rules (50%) |
New Rules |
| Taxable amount |
$250,000 |
$291,675 |
| Tax at 45% marginal |
$112,500 |
$131,254 |
| Extra tax |
|
$18,754 |
Who Is Affected
Most Impacted
| Group |
Why |
| Real estate investors |
Large property gains |
| Business owners |
Share sales |
| Cottagers |
Secondary property sales |
| Inheritors |
Capital property disposition |
| Farmers |
Land sales |
Less Affected
| Group |
Why |
| Primary residence sellers |
Exemption still applies |
| Small gains (<$250K) |
Same 50% rate |
| TFSA/RRSP holders |
Tax-sheltered accounts |
| Most employees |
Gains below threshold |
Primary Residence Exemption
Still Tax-Free
| Rule |
Status |
| Primary residence exemption |
✅ Unchanged |
| One per family |
Still applies |
| Years of ownership |
Calculate PRE formula |
| Variable |
Meaning |
| (1 + years as PR) |
Numerator |
| Years owned |
Denominator |
| × Capital gain |
= Exempt portion |
Strategies to Minimize Tax
Before Large Gains
| Strategy |
Details |
| Trigger gains strategically |
Spread over years |
| Use $250K threshold |
One year at a time |
| Capital gains reserve |
Spread over 5 years |
Capital Gains Reserve
| Rule |
Details |
| What it does |
Spreads gain over up to 5 years |
| When available |
If payment received over time |
| Maximum deferral |
5 years (20% minimum/year) |
Example: $500K Over 5 Years
| Year |
Minimum to Report |
Taxable at 50% |
| 1 |
$100,000 |
$50,000 |
| 2 |
$100,000 |
$50,000 |
| 3 |
$100,000 |
$50,000 |
| 4 |
$100,000 |
$50,000 |
| 5 |
$100,000 |
$50,000 |
Each year stays below $250K threshold.
Spousal Strategies
| Strategy |
Benefit |
| Both spouses hold assets |
Each gets $250K threshold |
| Gift before sale |
Attribution rules apply |
| Joint ownership |
Split gains |
Corporate Structure
| Consideration |
Details |
| Corps pay 66.67% on all |
No $250K threshold |
| Integration |
Should net similar to personal |
| But timing |
Corporate rate lower initially |
Lifetime Capital Gains Exemption (LCGE)
Still Available
| Asset Type |
2025 LCGE Amount |
| QSBC shares |
$1,016,836 |
| Farm property |
$1,016,836 |
| Fishing property |
$1,016,836 |
| Canadian Entrepreneurs’ Incentive |
Additional (phase-in) |
Entrepreneurs’ Incentive (New)
| Year |
Additional Exemption |
| 2025 |
Up to $200,000 |
| 2026 |
Up to $400,000 |
| 2027 |
Up to $600,000 |
| 2028 |
Up to $800,000 |
| 2029+ |
Up to $2,000,000 |
Applicable to qualifying share sales.
Adjusted Cost Base (ACB)
Track to Minimize Gains
| Add to ACB |
Don’t Forget |
| Purchase price |
Original cost |
| Legal fees |
On purchase |
| Improvements |
Capital additions |
| Real estate commissions |
On sale |
Example
| Item |
Amount |
| Purchase price |
$300,000 |
| Legal fees (purchase) |
$2,000 |
| Renovations |
$50,000 |
| Adjusted cost base |
$352,000 |
| Sale price |
$500,000 |
| Selling costs |
$25,000 |
| Proceeds |
$475,000 |
| Capital gain |
$123,000 |
Tax-Loss Harvesting
Offset Gains
| Strategy |
How |
| Sell losing investments |
Realize capital losses |
| Apply against gains |
Reduce taxable gain |
| Net capital loss |
Can carry back 3 years |
| Or carry forward |
Indefinitely |
Example
| Item |
Amount |
| Capital gain |
$300,000 |
| Capital loss |
-$80,000 |
| Net gain |
$220,000 |
| Under $250K? |
✅ All at 50% |
Superficial Loss Rule
What to Avoid
| Rule |
Details |
| 30-day rule |
Can’t rebuy same asset within 30 days |
| Includes spouse |
Affiliated persons |
| Includes RRSP/TFSA |
Same group |
| Penalty |
Loss denied |