Canada Capital Gains Tax Calculator 2023
Estimate taxable capital gains and resulting federal and provincial income tax impact
Introduction
🎯 What
Canada Capital Gains Tax Calculator 2023.
👥 Who
Individuals, investors, landlords, small businesses.
💡 Why
To estimate taxable capital gains and resulting federal and provincial income tax impact.
REQUIRED INPUTS
Tax Information
CALCULATOR OUTPUT
Enter transaction details
Detailed Calculation Breakdown
Capital Gains Overview
- Capital gains arise when selling a capital asset for more than its adjusted cost base (ACB)
- Common assets: real estate (non-principal residence), stocks, ETFs, bonds, mutual funds, cryptocurrency, business assets
- Only a portion of capital gains is taxable (inclusion rate)
- Applies to individuals, corporations, and trusts
Capital Gains Inclusion Rules 2023
- Individuals: Inclusion rate: 50%
- Corporations & Trusts: Inclusion rate: 66.67% (2/3)
taxable_capital_gain = net_capital_gain × inclusion_rate
Net Capital Gain Logic
adjusted_cost_base = purchase_price + capital_improvements
net_gain = sale_price − adjusted_cost_base − selling_expenses
IF net_gain < 0:
capital_loss = ABS(net_gain)
Tax Slabs Explanation
- Capital gains are not taxed separately
- Added to income after inclusion rate
- Taxed using federal and provincial progressive brackets
Allowances & Deductions
- ✔ Capital losses (current & carryforward)
- ✔ Principal residence exemption
- ✔ RRSP deductions
- ✔ Basic personal amount
- ✔ Provincial credits
Examples
Example 1:
- Asset: Stocks
- Buy: 20,000
- Sell: 40,000
- Gain: 20,000
- Taxable (50%): 10,000
- Tax applied using income brackets
Example 2:
- Rental property (non-principal residence)
- Gain: 100,000
- Taxable: 50,000
- Added to income and taxed with progressive rates
Frequently Asked Questions
Q: Are capital gains taxed at a flat rate?
A: No, they are added to income after inclusion.
Q: Is principal residence taxable?
A: No, if exemption applies.
Q: Can losses reduce salary income?
A: No, only capital gains.
Q: Does this include AMT?
A: No, Alternative Minimum Tax not included.
Q: Are corporate gains treated differently?
A: Yes, inclusion rate is 66.67% for corporations and trusts.
DISCLAIMER
- This calculator is for informational and Google AdSense content use only.
- Rates and rules are based on standard 2023 CRA guidelines.
- Figures are estimates and not legal, tax, or financial advice.
- Always confirm with CRA or a licensed tax professional.