Capital Gains Tax Calculator

Estimate taxes on the sale of an investment property in Canada

Property Details
Enter the purchase and sale information
$
$
$

Legal fees, land transfer tax, inspection

$

Agent commissions, legal fees, staging

$

Renovations that increased the property's value (not repairs/maintenance)

Your Tax Situation
Used to estimate your marginal tax rate
$

Employment income, business income, etc. (before tax)

Capital Gain Calculation
Sale price$850,000
Less: Sale costs−$35,000
Net proceeds$815,000
Less: Adjusted cost base−$665,000
Purchase price + costs + improvements$600,000 + $25,000 + $40,000
Total capital gain$150,000
Tax Estimate
Based on the 50% inclusion rate
Capital gain$150,000
Inclusion rate50%
Taxable capital gain$75,000
Your other income$90,000
Total income (with gain)$165,000
Federal tax on gain$18,608
Provincial tax on gain (Ontario)$8,261
Estimated total tax$26,868

Effective Tax Rate

17.9%

on total gain

Tax Payable

$26,868

federal + provincial

Net After Tax

$123,132

your profit

Important Disclaimer

This calculator provides estimates only and should not be relied upon for tax planning purposes. Actual tax owing depends on your complete tax situation, including deductions, credits, other income sources, and the specific rules that apply to your property. Properties sold within 12 months may be subject to the residential property flipping rule (taxed as business income at 100%, not 50%). Always consult a qualified tax professional for advice specific to your situation.

Understanding the Adjusted Cost Base (ACB)

Your ACB includes the original purchase price plus costs that added to the property's value. Eligible costs include:

  • Legal fees and land transfer tax paid at purchase
  • Capital improvements (kitchen renovation, new roof, additions)
  • Real estate agent commissions on sale
  • Legal fees on sale and staging costs

Read our full capital gains tax guide for a detailed explanation.

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