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Alberta doesn’t have its own capital gains tax. Normally half the gain is counted as income for the year, and it’s taxed at federal and Alberta rates like the rest of your pay. On a $40,000 gain, $20,000 becomes taxable, and someone earning $90,000 in Alberta would pay about $6,100 on it.
How does capital gains tax work in Alberta?
You sell an investment or a property for more than its cost, and the profit is the capital gain. The CRA’s inclusion rate is the share of that gain you report as a taxable capital gain. For 2025 the CRA says it’s one half.
What about 2026? The plan to raise the rate to two-thirds was cancelled in the Prime Minister’s release of 21 March 2025. The inclusion rate for 2026 is still one half, so 50% is the working figure. Check the CRA capital gains page before you file.
That counted half sits on top of your other income, so it’s taxed at your highest slabs. Alberta’s provincial rates for 2026 are below.
| Alberta taxable income | Provincial rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Federal slabs run from 14% to 33% on top of these, which is why one gain costs different people different amounts.
What does a $40,000 gain cost at different incomes?
We ran the same gain through our engine, with $20,000 of it taxable, on top of three salaries.
| Other taxable income | Extra tax on the gain |
|---|---|
| $40,000 | $4,496 |
| $90,000 | $6,100 |
| $200,000 | $8,459 |
Even at $200,000 the bill is about a fifth of the gain, because only half of it is counted. Measured against the whole $40,000 gain, that’s about 11% at $40,000 of other income and about 15% at $90,000. Mei in Red Deer, who sells some shares at a $40,000 profit while earning $90,000 otherwise, ends up with $33,900 of it after tax ($40,000 minus $6,100).
The capital gains tax calculator does this for you. Set the province to Alberta, enter your gain and your other income, and read the tax on the gain separately. If the sale also brings dividends, the dividend tax calculator handles those.
Which gains don’t follow this rule?
Some don’t. The federal government kept the higher lifetime capital gains exemption of $1,250,000 for 2025 (about ,275,000 for 2026) for qualifying small business shares and farm and fishing property. That’s a deduction with conditions, and we haven’t covered them here.
Gains inside a TFSA aren’t taxed at all, according to the CRA. Gains inside an RRSP aren’t taxed when they happen, but withdrawals are taxed as income. The TFSA calculator shows your room.
What about selling your home?
A home that was your principal residence is the big exception for many Albertans, but there’s a paperwork catch. On the CRA’s principal residence page, a sale of a property that was ever your principal residence still has to be reported on Schedule 3 and Form T2091(IND), even when no tax is owing because the gain is fully exempt. Skip that step and you can lose the exemption or face a penalty. Cottages, rentals and second properties follow other rules, so read the CRA’s page before you assume either way.
Mistakes to avoid on a sale
The biggest one is using the sale price as the gain. Take the sale price, subtract what you paid, then subtract the fees on both ends. Keep every receipt for tax time, and a long sentence like that one is a good reason to.
Another is forgetting that a loss can help. Capital losses reduce capital gains, and the CRA explains how on its own page. Mixing up the tax with the amount you receive is common as well. The money in your account after a sale is not the taxable figure.
Last, a sale in a year you also moved provinces isn’t covered here. The CRA’s guide on moving covers it, so read that first.
For a bigger picture, the income tax calculator shows your whole return with the gain included.
Our sources
Federal and Alberta rates are from the Canada Revenue Agency‘s 2026 tax rates page, checked on 30 September 2026. The half inclusion rate for 2025 is from the CRA, and the cancellation of the two-thirds proposal and the $1,250,000 exemption are from the Prime Minister’s release of 21 March 2025. The examples use our calculator engine. No level of government runs or endorses this site.
Frequently asked questions
Does Alberta charge its own capital gains tax?
No. The taxable part of a gain is added to your income and taxed at federal and Alberta rates.
What share of a gain is taxable?
The CRA says half for 2025. The rise to two-thirds was cancelled on 21 March 2025, but we couldn't find a CRA page that states the 2026 rate, so check before you file.
How much tax on a $40,000 gain in Alberta?
About $6,100 on top of a $90,000 income, from our engine. It's $4,496 at $40,000 and $8,459 at $200,000.
Is there an exemption for small business shares?
The lifetime exemption limit stays at $1,250,000 for qualifying small business shares and farm or fishing property. Conditions apply.
Are gains in a TFSA taxed?
No. The CRA says gains earned in a TFSA are generally tax-free.
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