What is the capital gains inclusion rate in Canada right now?
This answer covers Canadian federal tax law, which applies in every province.
The capital gains inclusion rate in Canada is one-half. That means one-half of a capital gain is the taxable capital gain, and one-half of a capital loss is the allowable capital loss. The CRA says it is administering the enacted one-half rate, so gains realized before 2026 are taxed at one-half, subject to any exemption that applies.
The 2024 proposal would have raised the rate to two-thirds for individuals on annual gains above $250,000 and for corporations and most trusts on all gains. That increase was later cancelled, and Finance Canada says the government confirmed in Budget 2025 that it would not proceed. Because it never took effect, one-half applies to gains realized in 2024, 2025 and 2026.
Exception: the Lifetime Capital Gains Exemption increase was not cancelled. Budget 2025 confirmed a limit of $1.25 million of eligible capital gains for dispositions after June 24, 2024. The rate only tells you what portion of a gain is taxable. Your tax depends on your other income, your losses and any exemptions, and future budgets can change the rules, so confirm with an accountant before a large sale.
Key takeaways
- The taxable capital gain is one-half of the capital gain, and the allowable capital loss is one-half of the capital loss.
- The proposed increase to two-thirds was cancelled, so one-half applies to gains realized in 2024, 2025 and 2026.
- The proposal would have applied to corporations and most trusts on all gains, but the government decided not to proceed.
- The Lifetime Capital Gains Exemption increase to $1.25 million was not cancelled.