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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

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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.

Canadian Capital Gains Tax calculators

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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

It unlocks right here on the page — we don’t send emails. The Money Pocket (IZ Labs Kft.) stores your address and never sells it. Privacy policy.

Curated byThe Money Pocket team
Updated

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.

Canadian Capital Gains Tax guides

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