Capital Gains Tax Calculator Canada (2026): Tax on a Gain by Province

Enter what you paid, what you sold for, your selling costs and your marginal tax rate to estimate the tax on a capital gain. The calculator applies today’s inclusion rate: 50% of a gain is taxable under the Income Tax Act. A proposal to raise the inclusion rate was cancelled in March 2025. Your rate by province: Ontario, British Columbia, Alberta, Quebec, Manitoba, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Nunavut, Yukon.

What to enter

• Purchase price (ACB): your adjusted cost base, usually what you paid plus the costs of buying, such as commissions and legal fees, and for a property the cost of additions and improvements. Maintenance and repairs don’t count. The adjusted cost base guide shows how to work it out over several purchases.
• Sale price: usually the price you sold for.
• Selling expenses: costs of selling, such as commissions, brokers’ fees, legal fees, transfer taxes and advertising.
• Marginal tax rate: the rate on your next dollar of income before the gain. The marginal tax rate calculator gives it for your income and province; the province tables below give the bracket rates.

The CRA’s common examples of capital property include a cottage, stocks, bonds, units of a mutual fund trust, and land or buildings used in a business or rental. Crypto sales are covered on the crypto tax page. The calculator takes no losses (a sale below cost shows no gain); tax-loss harvesting covers how losses offset gains.

How the estimate is worked out

Capital gains tax in Canada explains the rules in full. The gain is the sale price minus the adjusted cost base and the selling expenses. Half of it is your taxable capital gain. That amount is added to your income for the year, so it is taxed at the federal and provincial rates of the brackets your income reaches. You work it out on Schedule 3 and report it on line 12700 of your return. You usually have a capital gain or loss when you sell capital property or are considered to have sold it, and you report it for the calendar year of that sale. Examples of being considered to have sold property include exchanging it for another property, giving it (other than cash) as a gift, having your shares or other securities converted or redeemed or cancelled by the corporation, an option you hold expiring, settling or cancelling a debt owed to you, transferring certain property to a trust, the property being expropriated, stolen or destroyed, changing its use, leaving Canada, and the owner's death.

Worked examples

Shares sold at a gain

A large gain that crosses a bracket (Alberta)

When the taxable part of a large gain reaches a higher bracket, the part above the threshold is taxed at the higher rate.

For an exact figure, run the income tax calculator twice, without and then with the taxable half of the gain in “Other taxable income”; the difference in total income tax is the tax on the gain.

What the estimate leaves out

• Your other income and benefits. A taxable capital gain is added to your income for the year, and the CRA uses your net income to work out the Canada child benefit, the GST/HST credit (now the Canada Groceries and Essentials Benefit) and the social benefits repayment. The calculator doesn’t show any effect on those amounts.
• Losses. A capital loss is first applied against your taxable capital gains of the same year; what is left becomes a net capital loss, which can reduce taxable capital gains in any of the three years before or in any future year, but usually can't be deducted from other income. You report it on Schedule 3, and request a carry-back on Form T1A rather than amending the earlier return. A loss on a sale you or an affiliated person buy back within the window is denied under the superficial loss rule.
• Your home. The gain on a home is tax-free for each year you designate it as your principal residence: you or your family must have ordinarily lived in it that year, a family can designate only one home a year, and you report the sale on Schedule 3 and Form T2091; the exempt share is the years designated (while resident in Canada), plus one if you were resident in the year you bought it, divided by the years owned. The principal residence exemption guide covers the designation. The sale of a capital property has to be reported on your return even when no tax is owed.
• Deductions and reserves. The capital gains deduction can reduce or offset a gain, and a capital gains reserve can defer part of one. On a gain from certain properties, you may be able to claim the lifetime capital gains deduction, half of the lifetime capital gains exemption ($1,275,000 for 2026).
• A rental building. Selling one can also bring back capital cost allowance as income; see capital gains on rental property.

Ways to lower capital gains tax

• Registered accounts. Interest, dividends and capital gains earned in a TFSA are generally tax-free, even when you withdraw them. Income earned in an RRSP is usually exempt from tax as long as the funds remain in the plan, and you generally pay tax when you receive payments from it. See the TFSA and RRSP calculators.
• Donating securities. Giving shares, debt obligations or rights listed on a designated stock exchange to a qualified donee reduces the taxable capital gain on them to zero, subject to conditions. The donation tax credit calculator adds the credit.
• Losses. A capital loss offsets gains of the same year (above); tax-loss harvesting covers selling at a loss on purpose.
• The year of the sale. A sale is reported for the calendar year it happens, so the year you sell decides which year’s income and brackets the gain joins.

Capital gains tax rates by province

Each tax rate applies only to the part of your taxable income that falls in its bracket, not to all of it, so moving into a higher bracket raises the tax only on the income above that threshold; provincial or territorial tax applies in addition to federal tax. The table gives each jurisdiction’s top combined rate and the top rate on a capital gain, half of it. Quebec’s federal part is after the abatement, and Ontario’s includes its surtax.

Each section below merges the federal and provincial brackets: the combined rate is the two bracket rates added together, and the capital gains rate is half of it. They show bracket rates. The CRA warns that above $181,440 of net income, claiming the full federal basic personal amount may leave an amount owing, and Ontario’s surtax and Manitoba’s phase-out are under those provinces below; the marginal tax rate calculator includes them.

Ontario

The table is before Ontario’s surtax. Ontario adds a surtax on top of its basic provincial tax: 20% of Ontario tax above $5,818 plus 36% of Ontario tax above $7,446 (2026 thresholds), which raises Ontario's top marginal rates above the bracket rates. Once your Ontario tax passes both thresholds, each Ontario rate is multiplied by 1.56: the 12.16% bracket becomes 18.97%. With the surtax, Ontario’s top combined rate is 53.53% and its top capital gains rate 26.76%.

British Columbia

British Columbia has seven brackets, up to 20.5% above $265,545.

Alberta

Alberta’s first bracket is 8% up to $61,200, and its top rate is 15% above $370,220. The cottage example is in Alberta.

Quebec

Quebec residents file a separate Quebec return with Revenu Québec, and their federal tax is reduced by the refundable Quebec abatement of 16.5% of basic federal tax; someone with a business establishment outside Quebec calculates it on Form T2203. Quebec’s return also taxes half of a capital gain, at Revenu Québec’s rates. The table already takes the abatement off the federal rates. The Quebec income tax page covers the rest.

Manitoba

Manitoba froze its bracket thresholds from the 2025 tax year. Its Income Tax Act sets them at $47,000 and $100,000 for 2024 and later years. This page follows the Act; the CRA’s 2026 rates page shows $47,564 and $101,200. Since the 2025 tax year, Manitoba's basic personal amount is phased out over net income from $200,000 to $400,000, so someone with net income of $400,000 or more gets none.

Saskatchewan

New Brunswick

Nova Scotia

Prince Edward Island

The CRA’s 2026 rates include a 20% bracket above $200,000.

Newfoundland and Labrador

Northwest Territories

Nunavut

Yukon

Related pages

• Capital gains tax in Canada
• How investment income is taxed
• Federal and provincial tax brackets
• T5008 slip explained