Canada Capital Gain Tax
Currently 50.00% of realized capital gains are taxed in Canada at an individual's tax rate. Some exceptions apply, such as selling one's primary residence which may be exempt from taxation.[2] Capital gains made by investments in a Tax-Free Savings Account (TFSA) are not taxed.
For example, if your capital gains (profit) is $100, you are only taxed on $50 at your marginal tax rate. That is, if you were in the top tax bracket, you would be taxed at approximately 43%. A formula for this example using the top tax bracket would be as follows:
Capital gain x 50.00% x marginal tax rate = capital gain tax
= $100 x 50.00% x 43%
= $50 x 43%
= $21.50
Currently 50.00% of realized capital gains are taxed in Canada at an individual's tax rate. Some exceptions apply, such as selling one's primary residence which may be exempt from taxation.[2] Capital gains made by investments in a Tax-Free Savings Account (TFSA) are not taxed.
For example, if your capital gains (profit) is $100, you are only taxed on $50 at your marginal tax rate. That is, if you were in the top tax bracket, you would be taxed at approximately 43%. A formula for this example using the top tax bracket would be as follows:
Capital gain x 50.00% x marginal tax rate = capital gain tax
= $100 x 50.00% x 43%
= $50 x 43%
= $21.50