Capital Gains Tax Calculator for Property in Canada
Estimate capital gains tax on a non-principal residence in Canada — investment property, cottage, or second home.
Land transfer tax, legal fees
Renovations that added value, kept receipts
Commission, legal
Your top tax bracket — combined federal + provincial
Estimated capital gains tax
$47,751
50% of your $220,000 gain is taxable at your marginal rate.
Applies to non-principal residences only. The inclusion rate is 50% on all capital gains — the proposed increase to 66.67% on gains above $250K was cancelled in March 2025 and never took effect. A home sold within 12 months of purchase is generally taxed as fully taxable business income under the residential flipping rule, not as a capital gain (some life events are exempt). Consult a tax professional for your specific situation.
How the calculator works
The capital gain is the sale price minus the selling costs and the adjusted cost base: what the property cost you, plus buying costs such as land transfer tax and legal fees, plus capital improvements. Half of the gain is taxable in Canada, added to your income for the year of the sale and taxed at your marginal rate, which is why the tax comes to about half your marginal rate on the gain.
It leaves out a few things that can apply to your sale: recapture of capital cost allowance claimed on a rental building, which is taxed in full; the principal residence exemption, which makes the sale of your home tax-free; and the flipping rule, which taxes a home sold within 365 days of buying it as business income. Our guide to capital gains tax on real estate in Canada explains each of them, with a worked example of a rental sale.
Related guides & tools
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