General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
The profit you make when you sell an investment for more than you paid. In Canada, only half of the gain is taxed.
Technical definition
A capital gain arises when a capital property is disposed of for proceeds exceeding its adjusted cost base (ACB) plus outlays and expenses. Under the current inclusion rate, 50% of the gain is added to taxable income and taxed at the individual's marginal rate. Capital losses can offset capital gains but not other income.
Examples
- • You buy shares for $10,000 and sell for $16,000. Your capital gain is $6,000, of which $3,000 (50%) is added to taxable income. At a 30% marginal rate, you owe $900.
- • You sell your principal residence at a gain — it's exempt from capital gains tax under the principal residence exemption.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.