Canada Capital Loss Planner — Carryforward & Carryback Calculator
Calculate how to apply Canadian capital losses to offset gains. Handle carryforwards from prior years and carrybacks to 2022–2024 to recover past taxes. Based on CRA T4037.
Canadian Capital Gains Tax Guide HubMake every loss count. Enter your 2025 gains and losses, apply carryforward losses from prior years, or carry a 2025 net loss back to 2022–2024 to recover taxes already paid.
Enter net capital losses from prior years you want to apply in 2025. These were incurred at the same 50% inclusion rate — no adjustment needed.
Carryback to prior years (optional)
If you have a net capital loss in 2025, you can apply it against taxable capital gains from the 3 prior years (2022, 2023, 2024) to get a refund.
💰 Tax Savings from Loss Offset
Net capital losses from prior years at a different inclusion rate require adjustment. This calculator assumes all losses are at the 50% inclusion rate. Use CRA Form T1436 if you have losses from years with different inclusion rates. Carryback refund estimates use your current marginal rate as an approximation.
How capital loss offsetting works in Canada
Capital losses can only be used to offset capital gains — they cannot be applied against employment income, business income, or other sources. Here is how the sequence works:
- Current year: Apply 2025 capital losses against 2025 capital gains first
- Carryforward: Apply net capital losses from prior years to remaining 2025 gains (claim on line 25300)
- Carryback: If you still have a net capital loss in 2025, carry it back to reduce taxable capital gains in 2022, 2023, or 2024 — and get a refund
Carryforward — no time limit
Net capital losses can be carried forward indefinitely. There is no expiry. A loss from 2012 is just as usable in 2025 as a loss from last year.
The only complication is when the losses were incurred at a different inclusion rate. For example, losses from 2000 (when the rate was 2/3) need to be adjusted if you're applying them against 2025 gains at 50%. The CRA provides Form T1436 (Capital Gains Worksheet) to handle this math.
Carryback — 3 years back
You can apply a 2025 net capital loss to taxable capital gains from 2022, 2023, or 2024, in any order. To do so, file Form T1A, Request for Loss Carryback, with your 2025 return. The CRA will reassess the prior year and issue a refund.
The carryback amount is applied to the taxable capital gain (i.e., the gain after the inclusion rate was already applied). The refund is calculated at the marginal rate you were in during the prior year.
Line references
| Amount | Line on T1 |
|---|---|
| Taxable capital gains | Line 12700 |
| Capital gains deduction | Line 25400 |
| Net capital losses of other years | Line 25300 |
| Net capital loss for the year | Used on Form T1A for carryback |
Related tools and guides
- Canadian Capital Gains Tax Calculator
- ACB Calculator for Stocks
- Capital Losses in Canada: Carryback & Carryforward Guide
- How Capital Gains Tax Works in Canada (2025)
- Capital Gains Inclusion Rate — History & 2025
Disclaimer: Losses from years with different inclusion rates require adjustment using Form T1436. This calculator assumes 50% inclusion rate for all losses. Consult a qualified Canadian tax professional.