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§ Calculator · Tax

Capital gains tax

What this is

Tax on selling investments at a profit

In Canada, only 50% of a capital gain is taxable (the “inclusion rate”). That taxable half is added to your other income and taxed at your marginal rate. Most generous form of investment income in Canada, beats interest, beats dividends from foreign stocks, beats RRSP withdrawals.

  • ·$100k capital gain → $50k taxable → taxed at your marginal rate.
  • ·Inclusion rate is 50% today. A 2024 proposal raised it to 66.7% above $250k/yr but was reversed.
  • ·Best account to hold growth stocks: non-registered for the capital-gains tax break, OR TFSA for tax-free, NOT RRSP (RRSP converts capital gains into fully-taxed income on withdrawal).

Taxable portion (50%)

$60,000

Tax on the gain

$23,328

Effective rate

19.4%

You keep

$96,672

Educational. Not financial advice. Capital gains realized inside an RRSP / RRIF / FHSA are NOT taxed at the inclusion rate, they’re taxed as ordinary income when you withdraw.

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Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.