# Capital Gains Tax on Investments and Property

> The extra tax on a sale depends on your other income. Enter price, cost and fees to see the capital gains tax in your province

Sell an investment for $95,000 more than it cost and this calculator adds $47,500 to your taxable income. For someone in Ontario with $90,000 of other income, that means about $17,451 of extra tax.

## How does a gain turn into tax?

The tool takes the sale price and removes what you paid (the adjusted cost base) and your selling costs. What's left is the gain, and it's the only number the rest depends on. Half of it joins the rest of your income for the year, and the extra tax is your bill with that half minus your bill without it.

So a gain never gets a flat rate of its own. It's stacked on top of your other income, which is why the same sale costs a lot more if you earn a high salary and a lot less in a low income year, and why two friends selling the same shares can pay very different bills.

## What does the same sale cost in different situations?

The figures below use a $250,000 sale, a $150,000 cost and $5,000 of selling costs, so the gain is $95,000.

| Situation | Extra tax | Share of the gain | Gain you keep |
| --- | --- | --- | --- |
| Ontario, $90,000 other income | $17,451 | 18.4% | $77,549 |
| Ontario, $50,000 other income | $13,479 | 14.2% | $81,522 |
| Alberta, $90,000 other income | $15,551 | 16.4% | $79,449 |

The lower earner pays about $3,970 less on the same gain, and the Alberta seller saves roughly $1,900 compared with Ontario. Other income is the biggest lever in the table. If you have any say over when you sell, try a few figures before you pick a year, because that's where the real money is.

## Where does the gain go on my return?

You work it out on Schedule 3 and carry the result to line 12700. The CRA's page on [line 12700, taxable capital gains](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains.html) says that if your taxable gains for the year were more than your allowable capital losses, you include the difference there.

Say Dana in Winnipeg sells a rental condo and a handful of shares in the same year. Both gains land on the same return at tax time, so add the two sale prices, the two costs and the two sets of selling costs, and enter the totals. Running the sales one by one would understate the bill, because the second gain sits on top of the first and gets taxed at a higher step.

## What does the tool skip?

- Use your adjusted cost base, not the purchase price alone. That's what the label asks for, and buying costs may belong in it.

- Selling costs such as commissions reduce the gain, so type them in their own box.

- A loss shows zero tax. The tool doesn't carry a loss to another year or match it against other gains.

- Your main home is usually exempt. The lifetime exemption for qualified small business shares and farm or fishing property is an option: tick the box and enter the amount you have left. The Department of Finance and the CRA put the limit at $1,250,000 for 2025, and indexing starts again in 2026, so check the current figure on the CRA's capital gains deduction page before you enter it. The exemption can trigger alternative minimum tax, which isn't included.

- A partial sale, shares bought at different prices or foreign currency need an adjusted cost base you work out first.

Check the result against your own records before you sell, and don't trust a number you can't trace to a statement. A gain also raises your income for the year, so it can change other amounts that depend on income, and those are outside this tool.

## Which other calculators go with this one?

To compare a gain with pay at the margin, use the [marginal tax rate calculator](https://tax-services.ca/calculators/income-tax/marginal-tax-rate). If you also get dividends, the [dividend tax calculator](https://tax-services.ca/calculators/income-tax/dividend-tax) is the one you'll want for those. Selling a house you rented out rather than lived in? The [home sale proceeds calculator](https://tax-services.ca/calculators/real-estate/home-sale-proceeds) covers commissions and the mortgage payout, and the [income tax calculator](https://tax-services.ca/calculators/income-tax/income-tax-calculator) gives the full yearly bill.

## Our sources

The tool counts half of each gain as income and applies the 2026 federal and provincial tax steps published on Canada.ca and by each province. We last checked them on 29 September 2026. This site has no connection with the CRA or any government body, and the result is an estimate.

---
Source: https://tax-services.ca/calculators/income-tax/capital-gains-tax
Last updated: 2026-10-07
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer