Canadian Capital Gains Tax Guide: ACB, Losses, Exemptions & Calculators

Complete Canadian capital gains tax resource. Calculate ACB, plan capital losses, understand the inclusion rate, and claim exemptions. CRA-accurate guides and free calculators.

4 calculators 7 guides

ACB Calculator — Adjusted Cost Base for Stocks (Canada)Canada Capital Loss Planner: Carryforward and Carryback Canadian Capital Gains Tax Calculator

Canadian Capital Gains Tax calculators

Free, private, and instant — every calculator runs in your browser.

CalculatorACB Calculator — Adjusted Cost Base for Stocks (Canada)Calculate the weighted-average adjusted cost base (ACB) of Canadian stocks and ETFs bought in several lots, with ACB per share, capital gain, and tax.CalculatorCanada Capital Loss Planner: Carryforward and CarrybackPlan how to use Canadian capital losses: offset this year's gains, apply carryforwards on line 25300, or carry a net capital loss back 3 years with Form T1A.CalculatorCanadian Capital Gains Tax CalculatorEstimate Canadian capital gains tax by province: ACB, selling costs, the 50% inclusion rate, loss carryforwards, and after-tax proceeds, per CRA guide T4037.CalculatorPrincipal Residence Exemption Calculator CanadaEstimate how much of a Canadian home sale is tax-free under the principal residence exemption, using the CRA's one-plus formula from Form T2091(IND).

Free · 1-page PDF-ready sheet

Canadian capital gains rules, on one page

Inclusion rate, ACB math, superficial-loss rules, and carryback windows — the CRA rules you actually need at tax time.

The 50% inclusion rate and how it is applied
Adjusted cost base (ACB) formula with an example
Superficial-loss 30-day rule
Capital-loss carryback (3 years) and carryforward

Curated byThe Money Pocket team

Updated October 9, 2026

Canada taxes capital gains differently from the US — and the rules have nuances that can save (or cost) you thousands. From calculating your Adjusted Cost Base (ACB) correctly to understanding the 50% inclusion rate and claiming the Lifetime Capital Gains Exemption, this hub covers everything Canadian investors need.

How Canadian Capital Gains Tax Works

When you sell a capital property in Canada at a profit, only a portion of that gain is included in your income — this is the inclusion rate. For most taxpayers, the inclusion rate is 50%: you include half the gain in income and pay tax at your marginal rate on that half.

The Inclusion Rate

50% for most individual taxpayers (on gains up to $250,000 annually)
Effective federal rates range from approximately 7.5% to 26.7% depending on your province and income

Adjusted Cost Base (ACB)

Your ACB is the foundation of every capital gains calculation. It includes:

Purchase price
Buying commissions and fees
Reinvested dividends (DRIP)
Return of capital adjustments

The identical properties rule means you must average the ACB across all shares of the same class — you can't choose which "lot" you're selling.

Key Canadian Capital Gains Concepts

Schedule 3 Reporting

All capital dispositions must be reported on Schedule 3 of your T1 return. Net capital gains flow to Line 12700 of your income.

Capital Loss Carryback and Carryforward

Capital losses can be carried back 3 years to recover taxes paid, or carried forward indefinitely to offset future gains. Form T1A handles carrybacks; Line 25300 tracks carryforwards.

Lifetime Capital Gains Exemption (LCGE)

Canadians can shelter up to $1,250,000 (indexed annually) of gains on qualifying small business corporation shares, farm property, or fishing property. This is one of the most valuable tax breaks available to Canadian business owners.

Principal Residence Exemption

Your home is generally exempt from capital gains tax under the principal residence exemption. Form T2091 must be filed in the year of sale — including years where the gain is fully exempt.

Crypto and the CRA

The CRA treats cryptocurrency as a commodity, not currency. Every disposition (sale, trade, purchase) is a taxable event. Mining and staking income may be business income rather than capital gains.

Capital Gains Tax Hub — US capital gains tax rules and strategies
Canadian Disability Tax Hub — Other CRA deductions available to Canadians
Federal Income Tax Hub — Understanding tax brackets and marginal rates
Estate Planning Hub — Deemed disposition on death in Canada

Canadian Capital Gains Tax guides

GuideCapital Gains Inclusion Rate in CanadaCanada's capital gains inclusion rate is 50% for 2025 and 2026. See what it means, how it changed since 1988, and what happened to the two-thirds proposal.GuideCapital Gains Tax on Crypto in CanadaHow the CRA taxes crypto-assets: taxable dispositions, capital gain vs business income, average cost, staking and mining, and Schedule 3 reporting.GuideCapital Losses in Canada: Carry Back and Carry ForwardHow Canadian capital losses work: net them against gains, carry a net capital loss back three years with Form T1A, or forward indefinitely on line 25300.GuideHow Capital Gains Tax Works in CanadaA plain-English guide to Canadian capital gains tax for 2025 and 2026: what triggers it, the 50% inclusion rate, ACB, exemptions, losses, and Schedule 3.GuideHow to Calculate Adjusted Cost Base (ACB) in CanadaHow to calculate ACB for shares, mutual funds, ETFs, US-dollar stocks, real estate, inherited property, and employee shares, with CRA rules and worked examples.GuideLifetime Capital Gains Exemption (LCGE) in CanadaThe LCGE shelters $1.25 million of gains on qualified small business shares and farm or fishing property in 2025 and $1.275 million in 2026. How it works.GuidePrincipal Residence Exemption in Canada ExplainedHow Canada's principal residence exemption works: who qualifies, the one-plus formula, cottages, renting out your home, flipping, and Form T2091.