After Tax Canada / Capital gains taxVersion française
Capital gains tax calculator (2026)
Sold an investment, a rental property or shares? Half of the gain is taxable income in Canada, taxed at your marginal rates on top of your other income. Enter the gain and your other income to see the tax in every province.
Ontario · 2026
$7,320$7,320 of tax on a $50,000 capital gain
Effective rate on the full gain 14.6%
Tax breakdown
| Taxable capital gain (50% of the gain) | $25,000 |
| Federal tax on the gain | $5,043 |
| Provincial tax on the gain | $2,277 |
| Total tax on the gain | $7,320 |
| You keep from the gain | $42,680 |
Only half of a capital gain is taxable income in Canada, so the tax is computed on the taxable half at your marginal rates. Capital gains do not attract CPP, EI or QPIP, so no payroll deductions appear here.
How the tax is calculated
The calculator adds the taxable half of your gain to your other income for the year and takes the difference in federal plus provincial income tax, using the 2026 brackets and credits. A larger gain can push part of the taxable half into a higher bracket, which is why the effective rate rises as the gain grows. The proposed two-thirds inclusion rate never took effect: it was cancelled in March 2025, so the inclusion rate stays at 50% for gains of any size.
Make your take-home work harder
Your paycheque is only half the story. These are the account types Canadians use to put after-tax money to work. What follows is factual information, not financial advice.
High-interest savings account
A savings account that pays a higher rate than a chequing account. Money stays liquid and earns interest while you keep it.
Partner offers coming soon
Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
Partner offers coming soon
Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
Partner offers coming soon
We are reviewing Canadian providers. When offers appear here, they will be clearly labelled.
Disclosure: if partner offers are listed here in the future, they will be clearly labelled, and we may earn a commission. Account descriptions are factual information, not financial advice.
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Worked examples, capital gains in 2026
| Gain and other income | Taxable gain | Tax on the gain | You keep |
|---|---|---|---|
| $50,000 gain · $75,000 other · ON | $25,000 | $7,320 | $42,680 |
| $100,000 gain · $75,000 other · QC | $50,000 | $18,973 | $81,027 |
| $25,000 gain · $50,000 other · BC | $12,500 | $2,727 | $22,273 |
| $200,000 gain · $100,000 other · AB | $100,000 | $36,608 | $163,392 |
Tax on the gain · 2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I pay on a $50,000 capital gain in Ontario?
With $75,000 of other income, a $50,000 capital gain in Ontario in 2026 means $25,000 of taxable capital gain and $7,320 of tax, so you keep $42,680 of the gain. The effective rate on the full gain is 14.6%.
How is capital gains tax calculated in Canada?
Canada has no separate capital gains tax rate. Under section 38 of the Income Tax Act, half of a capital gain is a taxable capital gain: it is added to your other income for the year and taxed at your ordinary federal and provincial marginal rates. The other half is not taxed. That is why the tax depends on your other income, not just the size of the gain.
Is capital gains tax higher in Quebec than in Ontario?
Yes, on the same gain. A $50,000 capital gain with $75,000 of other income costs $8,872 in tax in Quebec in 2026, against $7,320 in Ontario, a difference of $1,553. Quebec's provincial income tax rates are higher at these incomes, so the same taxable gain costs more there.
How much tax on a $100,000 capital gain in Quebec?
With $75,000 of other income, a $100,000 capital gain in Quebec in 2026 means $50,000 of taxable capital gain and $18,973 of tax, so you keep $81,027. The effective rate on the full gain is 19.0%, higher than on a $50,000 gain because part of the taxable half lands in higher brackets.
Does the two-thirds capital gains inclusion rate apply in 2026?
No. Budget 2024 proposed raising the inclusion rate from one half to two thirds for individuals on gains above $250,000 a year, but the proposal was deferred in January 2025 and cancelled on March 21, 2025, so it never took effect. In 2026 the inclusion rate is 50% for gains of any size, for individuals, corporations and trusts.
Do I pay CPP or EI on a capital gain?
No. CPP/QPP, EI and QPIP are charged on employment and self-employment earnings, not on capital gains. The tax on a gain is federal plus provincial income tax only, which is why this calculator shows no payroll deductions.
What if I have capital losses?
Capital losses offset capital gains: only your net capital gain for the year is taxed, at the same 50% inclusion rate. This calculator assumes the amount you enter is already your net gain after losses. Unused net capital losses can generally be carried back three years or forward indefinitely against future gains.