WealthCapital Gains Tax Calculator (Canada) 2026
Capital Gains Tax Calculator 2026
Total amount received on the sale, net of brokerage commissions if you want to be precise.
Everything the position cost you: purchase price + commissions + reinvested dividends (DRIP).
Income is used to find the tax bracket your gain falls into (combined federal + provincial marginal rate).
How capital gains tax works in Canada
When you sell an investment (stock, ETF, mutual fund) in a non-registered account for more than you paid, you realize a capital gain. The good news: in Canada, that gain is taxed favourably. For an individual, the inclusion rate is 50% — meaning only half of your gain is added to your taxable income for the year.
The exact formula this calculator uses is:
- Gross capital gain = proceeds of disposition − adjusted cost base (ACB)
- Taxable gain = gross gain × 50% (2026 inclusion rate)
- Estimated tax = taxable gain × your combined marginal rate (federal + provincial), based on the bracket your income falls into
- Net amount kept = sale proceeds − estimated tax on the gain
Unlike full return simulators that bury you in dozens of fields, we focus on the only answer that really matters: how much you'll actually pay, and how much you keep.
Worked example
Say you sell 400 units of an ETF for $20,000. You had paid $14,000 in total (your ACB). You live in Ontario and your annual taxable income is about $70,000.
- Gross capital gain: $20,000 − $14,000 = $6,000
- Taxable gain (50%): $6,000 × 0.50 = $3,000
- Approximate combined marginal rate in Ontario at that income: ~30%
- Estimated tax: $3,000 × 0.30 ≈ $890
- Net amount kept: $20,000 − $890 ≈ $19,110
On a $6,000 gain you only pay roughly $890 in tax — an effective rate of just ~15% on the gain, thanks to the 50% inclusion rate.
What if I sell at a loss?
If your proceeds are lower than your ACB, you realize a capital loss. It triggers no tax and is carryable: you can use it to offset capital gains in the current year, the three prior years, or any future year. Watch out, though, for the superficial loss rule: if you buy back the same security within 30 days before or after the sale, the tax regulator denies the loss.
Frequently Asked Questions
What is the 50% inclusion rate?
In Canada, only half of a capital gain is taxable for an individual. If you realize a $10,000 gain, only $5,000 is added to your taxable income and taxed at your marginal rate. For 2026, this tool assumes a 50% inclusion rate, with no $250,000 threshold applied by default.
How do I calculate my ACB (adjusted cost base) if I bought in multiple lots?
Your ACB is the average cost of all your purchases. Add up everything you paid (purchase price plus commissions on each trade), then divide by the total number of shares held. When you sell, the gain is the proceeds minus the ACB of the shares sold. Reinvested dividends (DRIP) also increase your ACB. See our ACB guide.
Are gains inside a TFSA or RRSP taxable?
No. Capital gains realized inside a TFSA or RRSP are not taxable when you sell. In a TFSA, withdrawals are tax-free. In an RRSP, tax is deferred: withdrawals are taxed as ordinary income, with no separate capital gain calculation. This calculator is for non-registered (taxable) accounts.
What is a superficial loss and how do I avoid it?
A superficial loss happens when you sell a security at a loss and buy back the same (or an identical) security within 30 days before or after the sale. The Canada Revenue Agency then denies the loss: you cannot deduct it immediately, it is added to the ACB of the new shares instead. To avoid it, wait more than 30 days before repurchasing the same security. Learn more.
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