Capital Gains
In 2024, Canada implemented significant changes to its capital gains tax laws, which will have a considerable impact on many investors and property owners. Here’s what you need to know:
What is Capital Gains Tax?
Capital gains tax is applied to the profit made when you sell an asset, such as stocks, real estate, or other investments, for more than its purchase price. This profit, known as a capital gain, is subject to taxation.
How Does Capital Gains Tax Work?
In Canada, only a portion of your capital gains is taxable. As of 2025, the capital gains inclusion rate remains at 50%, meaning that only half of your realized capital gains are added to your taxable income.
While the federal government proposed increasing the inclusion rate in the 2024 budget—from 50% to 66.67% for individuals with gains over $250,000 annually—these changes have not yet been enacted into law. Until legislation is passed, the 50% inclusion rate continues to apply to individuals, corporations, and trusts.
For example: If you realize a capital gain of $100,000, only $50,000 would be taxable income. This taxable portion is then taxed at your marginal income tax rate.
See the Impact Live with Optiml
Understanding how capital gains tax affects your financial future is crucial. Optiml allows you to see the impact of this in real-time, helping you make informed decisions. Our cutting-edge software calculates the tax implications of your capital gains instantly, so you can adjust your strategies and optimize your financial plan accordingly.
With Optiml, you don't need to guess or wait to see how these potential tax changes might affect you—you can explore scenarios, plan your moves, and ensure you're taking full advantage of the current tax landscape, all from the comfort of your home.
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