OneCalcs Canada
50% inclusion rate · 2026Checked September 28, 2026

Capital gains tax calculator

Enter the gain on shares, funds, crypto or a property that is not your principal residence, plus your other income, to see the extra tax you owe.

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Salary or wages before tax. The gain is taxed on top of it.

The gain is realized in 2026 by an individual and taxed on top of employment income. Capital losses, the lifetime exemption, the principal residence exemption, alternative minimum tax and OAS recovery are not included.

Tax on your capital gain
$3,115.00
15.6% of the gain · you keep $16,885
Capital gain$20,000.00
Taxable part (50%)$10,000.00
Extra federal tax$2,050.00
Extra Ontario tax$1,065.00
Tax on the gain$3,115.00
Gain after tax$16,885.00

How capital gains are taxed in 2026

  1. Work out the gain: what you sold for, minus your adjusted cost base and selling costs.
  2. Only 50% of it, the taxable capital gain, is added to your income for the year.
  3. That amount is taxed at your normal federal and provincial rates, so the tax depends on your other income.

The inclusion rate stays at 50%. The planned increase to two-thirds was cancelled in 2025 and never took effect, so gains realized in 2026 are treated like those in earlier years.

Tax on a $20,000 gain in Ontario

Other incomeTaxable partTax on the gainEffective rate
$0$10,000$00%
$50,000$10,000$2,20211%
$80,000$10,000$2,96514.8%
$120,000$10,000$4,34121.7%
$200,000$10,000$4,97624.9%

Gains that are not taxed

The sale of your principal residence is normally tax-free if it was your home for every year you owned it; you still report it on Schedule 3. Gains inside an RRSP, TFSA or FHSA are not taxed when they happen. Shares of a qualified small business corporation and qualified farm or fishing property can use the lifetime capital gains exemption.

Capital losses can offset capital gains in the same year, be carried back three years, or carried forward indefinitely. Losses on personal-use property, like a car, cannot be claimed.

Common questions

How much tax do I pay on a $20,000 capital gain in Ontario?

With $70,000 of other income, $3,115. Only $10,000 is taxable, at your marginal rate.

Is the capital gains inclusion rate two-thirds in 2026?

No. It is 50% for individuals. The proposed two-thirds rate was cancelled and was never law.

Do I pay capital gains tax when I sell my house?

Not if it was your principal residence for every year you owned it. You report the sale and designate it on your return, but no tax is due.

Are crypto gains taxed as capital gains?

Usually, if you hold crypto as an investment. If you trade often enough to be carrying on a business, the CRA can treat the full profit as business income instead.

Sources

Checked September 28, 2026. OneCalcs is independent and not affiliated with the Canada Revenue Agency, Revenu Québec or any provincial government.

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