The tax year is 2026. Every bracket and basic personal amount in this tool is a published 2026 figure, from the Canada Revenue Agency's current-year rates page, as checked on November 8, 2026. The 2027 brackets had not been published by the Agency when this page was built on November 9, 2026. Do not use a 2026 bracket as a 2027 bracket.
The 50% inclusion rate. The inclusion rate is the fraction of the capital gain that becomes your taxable capital gain. For 2026 it is one-half: 50% of the gain is added to your taxable income and taxed at your marginal rate, and the other 50% is not taxed. You work out the gain on Schedule 3, Capital Gains or Losses, and the taxable amount goes to line 12700 of your return. The gain itself is the proceeds of disposition minus the adjusted cost base minus the outlays and expenses of selling.
The 66.67% rate was cancelled and never became law. Budget 2024 proposed raising the inclusion rate from one-half to two-thirds on an individual's gains above $250,000 a year. The change was deferred on January 31, 2025, and on March 21, 2025 the government announced it would cancel the proposed increase. It never took effect. There is no $250,000 threshold in 2026 and no two-thirds tier on any part of an individual's gain. This tool applies 50% to every dollar of gain.
The lifetime capital gains exemption. If you sell qualified small business corporation shares or qualified farm or fishing property, the lifetime capital gains exemption can shelter up to $1,275,000 of the gain from tax over your lifetime in 2026. Because only half of a gain is taxable, the matching deduction on your return is up to $637,500, claimed on line 25400 with Form T657. The exemption applies only to individuals, only to qualifying property, and only to the gain that remains after any capital losses; it does not apply to a sale of business assets by a corporation or to shares that fail the qualifying tests. This tool does not test whether your sale qualifies and does not apply the exemption to its result.
The federal brackets for 2026. 14% on taxable income up to $58,523; 20.5% from $58,523.01 to $117,045; 26% from $117,045.01 to $181,440; 29% from $181,440.01 to $258,482; 33% above $258,482. Only the slice of income inside each band is taxed at that band's rate. The federal basic personal amount is $16,452 where net income is at or below $181,440, phasing down to $14,829 at $258,482, applied as a credit at 14%. This tool uses your taxable income as the stand-in for net income when working out the phase-down.
The provincial and territorial brackets for 2026. Alberta: 8% to $61,200, 10% to $154,259, 12% to $185,111, 13% to $246,813, 14% to $370,220, 15% above. British Columbia: 5.6% to $50,363, 7.7% to $100,728, 10.5% to $115,648, 12.29% to $140,430, 14.7% to $190,405, 16.8% to $265,545, 20.5% above. Manitoba: 10.8% to $47,564, 12.75% to $101,200, 17.4% above. New Brunswick: 9.4% to $52,333, 14% to $104,666, 16% to $193,861, 19.5% above. Newfoundland and Labrador: 8.7% to $44,678, 14.5% to $89,354, 15.8% to $159,528, 17.8% to $223,340, 19.8% to $285,319, 20.8% to $570,638, 21.3% to $1,141,275, 21.8% above. Nova Scotia: 8.79% to $30,995, 14.95% to $61,991, 16.67% to $97,417, 17.5% to $157,124, 21% above. Northwest Territories: 5.9% to $53,003, 8.6% to $106,009, 12.2% to $172,346, 14.05% above. Nunavut: 4% to $55,801, 7% to $111,602, 9% to $181,439, 11.5% above. Ontario: 5.05% to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000, 13.16% above. Prince Edward Island: 9.5% to $33,928, 13.47% to $65,820, 16.6% to $106,890, 17.62% to $142,520, 19% to $200,000, 20% above. Quebec: 14% to $54,345, 19% to $108,680, 24% to $132,245, 25.75% above. Saskatchewan: 10.5% to $54,532, 12.5% to $155,805, 14.5% above. Yukon: 6.4% to $58,523, 9% to $117,045, 10.9% to $181,440, 12.8% to $500,000, 15% above. Each jurisdiction's basic personal amount is applied as a credit at its lowest rate. Quebec residents get the 16.5% federal abatement on their federal tax.
How the tax on the gain is worked out. The tool works out the total federal plus provincial tax on your other income plus the taxable gain, then works out the total tax on your other income alone, and the difference is the tax on the gain. That is the right way to price a gain that straddles brackets: the taxable half is taxed at whatever marginal rates the extra income lands in, not at one flat rate. The effective rate on the whole gain is the tax on the gain divided by the whole gain.
Worked examples. In Ontario, with $60,000 of other income, a $100,000 sale price, a $40,000 adjusted cost base, and $2,000 of selling expenses: the gain is $100,000 minus $40,000 minus $2,000, which is $58,000, and the taxable gain is 50% of that, which is $29,000. In British Columbia, with no other income, a $50,000 sale price, a $30,000 adjusted cost base, and no selling expenses: the gain is $20,000 and the taxable gain is $10,000.
What this calculator leaves out. Capital losses, including losses carried forward from earlier years; the lifetime capital gains exemption for qualified small business corporation shares and qualified farm or fishing property, which this tool states but does not calculate or apply; the principal residence exemption, which makes the gain on your home tax-free and which this tool assumes does not apply; gains inside an RRSP or a TFSA, which are not taxed; the Ontario surtax and Health Premium, the British Columbia tax reduction, the Prince Edward Island low-income tax reduction, and the Manitoba basic personal amount reduction above $200,000 of net income; and any credit beyond the basic personal amounts.
Sources: Canada Revenue Agency, Calculating and reporting your capital gains and losses (the gain as proceeds minus adjusted cost base minus selling expenses, Schedule 3, and line 12700), Canada Revenue Agency, Current year tax rates and income brackets (2026) (the federal brackets and every province and territory's 2026 brackets except Quebec), and Revenu Quebec, Income tax rates (the 2026 Quebec brackets), all opened at build time on November 8 or 9, 2026. The 50% inclusion rate is the rate the Agency administers for 2026, and the proposed two-thirds rate was cancelled on March 21, 2025 before it became law. The 2026 lifetime capital gains exemption of $1,275,000 (a deduction of up to $637,500 on line 25400) is from the Canada Revenue Agency, Indexation adjustment for personal income tax and benefit amounts. No figure on this page comes from anywhere else.