Are you wondering what the capital gain tax rates are in Canada? Look no further! As a Canadian, it’s important to understand how capital gains are taxed in our country, especially if you’re planning on selling a property or investment.
First, let’s define what a capital gain is. In simple terms, a capital gain is the profit you make when you sell an asset for more than you paid for it. This could be a piece of real estate, a stock, or even a collectible item.
In Canada, capital gains are taxed at a lower rate than regular income. Only 50% of your capital gain is included in your taxable income. This means that if you made a capital gain of $100,000, only $50,000 would be added to your taxable income for the year.
What Are The Actual Tax Rates For Capital Gains In Canada
The full detailed tax tables, per province, can be found below.
Here’s an example with $75,000 regular income and a $100,000 capital gains, in Ontario:
The first $49,231 would be taxed at 20.05%, totaling $9,871.82;
The next $4,128 would be taxed at 24.15%, totaling $996.91;
The last $21,641 of income would be taxed at 29.65%, totaling $6,416.56;
The capital gains will be included at a 50% rate on top of that;
The first $11,698 of capital gains would be taxed at 29.65%, totaling $3,468.46
The next $11,765 of gains would be taxed at 31.48%, totaling $3,703.62
The next $3,672 of gains would be taxed at 33.89%, totaling $1,244.44
The next $4,582 of gains would be taxed at 37.91%, totaling $1,737.04
The last $18,283 of gains would be taxed at 43.41%, totaling $7,936.65
The total taxes on the income and the capital gain would therefore be $35,375.50
It’s important to note that there are some exceptions to these tax rates. For example, if you sell a personal residence that has been your primary residence for the entire time you owned it, you may be eligible for the principal residence exemption. This would therefore save you money on taxes. This means that you won’t have to pay any capital gains tax on the sale of your home.
Additionally, there are special rules for certain types of assets, such as farm property and small business shares. These rules can help to reduce the amount of capital gain tax you have to pay. Capital gains are also exempt on a primary residence.
Federal Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $53,359
15%
7.5%
more than $53,359 to $106,717
20.5%
12.25%
more than $106,717 to $165,430
26%
13%
more than $165,430 to $235,675
29.32%
14.66%
more than $235,675
33%
16.5%
Combined Alberta Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $53,359
25%
12.5%
more than $53,359 to $106,717
30.5%
15.25%
more than $106,717 to $142,292
36%
18%
more than $142,292 to $165,430
38%
19%
more than $165,430 to $170,751
41.32%
20.66%
more than $170,751 to $227,668
42.32%
21.16%
more than $227,668 to $235,675
43.32%
21.66%
more than $235,675 to $341,502
47%
23.5%
more than $341,502
48%
24%
Combined British Columbia Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $45,654
20.06%
10.03%
more than $45,654 to $53,359
22.7%
11.35%
more than $53,359 to $91,310
28.2%
14.1%
more than $91,310 to $104,835
31%
15.5%
more than $104,835 to $106,717
32.79%
16.4%
more than $106,717 to $127,299
38.29%
19.15%
more than $127,299 to $165,430
40.7%
20.35%
more than $165,430 to $172,602
44.02%
22.01%
more than $172,602 to $235,675
46.12%
23.06%
more than $235,675 to $240,716
49.8%
24.9%
more than $240,716
53.5%
26.75%
Combined Manitoba Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $36,842
25.8%
12.9%
more than $36,842 to $53,359
27.75%
13.88%
more than $53,359 to $79,625
33.25%
16.63%
more than $79,625 to $106,717
37.9%
18.95%
more than $106,717 to $165,430
43.4%
21.7%
more than $165,430 to $235,675
46.72%
23.36%
more than $235,675
50.4%
25.2%
Combined New Brunswick Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $47,715
24.4%
12.2%
more than $47,715 to $53,359
29%
14.5%
more than $53,359 to $95,431
34.5%
17.25%
more than $95,431 to $106,717
36.5%
18.25%
more than $106,717 to $165,430
42%
21%
more than $165,430 to $176,756
45.32%
22.66%
more than $176,756 to $235,675
48.82%
24.41%
more than $235,675
52.50%
26.25%
Combined Newfoundland Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $41,457
23.7%
11.85%
more than $41,457 to $53,359
29.5%
14.75%
more than $53,359 to $82,913
35%
17.5%
more than $82,913 to $106,717
36.3%
18.15%
more than $106,717 to $148,027
41.8%
20.9%
more than $148,027 to $165,430
43.8%
21.9%
more than $165,430 to $207,239
47.12%
23.56%
more than $207,239 to $235,675
49.12%
24.56%
more than $235,675 to $264,750
52.8%
26.4%
more than $264,750 to $529,500
53.8%
26.9%
more than $529,500 to $1,059,000
54.3%
27.15%
more than $1,059,000
54.8%
27.4%
Combined Nova Scotia Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $25,000
23.79%
11.90%
more than $25,000 to $29,590
24.32%
12.16%
more than $29,590 to $53,359
30.48%
15.24%
more than $53,359 to $59,180
35.98%
17.99%
more than $59,180 to $74,999
37.7%
18.85%
more than $74,999 to $93,000
37.17%
18.59%
more than $93,000 to $106,717
38%
19%
more than $106,717 to $150,000
43.5%
21.75%
more than $150,000 to $165,430
47%
23.5%
more than $165,430 to $235,675
50.32%
25.16%
more than $235,675
54%
27%
Combined Ontario Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $49,231
20.05%
10.03%
more than $49,231 to $53,359
24.15%
12.08%
more than $53,359 to $86,698
29.65%
14.83%
more than $86,698 to $98,463
31.48%
15.74%
more than $98,463 to $102,135
33.89%
16.95%
more than $102,135 to $106,717
37.91%
18.95%
more than $106,717 to $150,000
43.41%
21.70%
more than $150,000 to $165,430
44.97%
22.48%
more than $165,430 to $220,000
48.29%
24.14%
more than $220,000 to $235,675
49.85%
24.92%
more than $235,675
53.53%
26.76%
first $49,231
20.05%
10.03%
Combined Prince Edward Island Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $31,984
24.8%
12.4%
more than $31,984 to $53,359
28.8%
14.4%
more than $53,359 to $63,969
34.3%
17.15%
more than $63,969 to $100,664
37.2%
18.6%
more than $100,664 to $106,717
38.87%
19.44%
more than $106,717 to $165,430
44.37%
22.19%
more than $165,430 to $235,675
47.69%
23.85%
more than $235,675
51.37%
25.69%
Combined Quebec Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $49,275
27.53%
13.76%
more than $49,275 to $53,359
32.53%
16.26%
more than $53,359 to $98,540
37.12%
18.56%
more than $98,540 to $106,717
41.12%
20.56%
more than $106,717 to $119,910
45.71%
22.86%
more than $119,910 to $165,430
47.46%
23.73%
more than $165,430 to $235,675
50.23%
25.12%
more than $235,675
53.31%
26.65%
Combined Saskatchewan Capital Gains Table For 2023
2023 Taxable Income
Taxable Rate
Capital Gains Rate
first $49,720
25.5%
12.75%
more than $49,720 to $53,359
27.5%
13.75%
more than $53,359 to $106,717
33%
16.5%
more than $106,717 to $142,058
38.5%
19.25%
more than $142,058 to $165,430
40.5%
20.25%
more than $165,430 to $235,675
43.82%
21.91%
more than $235,675
47.5%
23.75%
So, to sum it up, the capital gain tax rates in Canada depend on your province, your taxable income for the year and the type of asset you’re selling.
Understanding capital gain tax rates in Canada is important for any Canadian looking to sell an asset. By knowing the tax rates and any potential exemptions or special rules, you can make informed decisions about your financial future.
