Capital gains tax calculator Ontario
Capital gains tax calculator Ontario: type what you paid and what you sold for, and the calculator below opens preset for Ontario and runs both taxes on your gain. Ottawa taxes half the gain through the federal brackets, then Ontario taxes that same half through its own rates, surtax included.
The size of the bill follows your other income. The taxable half lands on top of it, and each level taxes whatever crosses into its higher brackets. One gain, two calculations, one combined figure.
How it works
One gain, two taxes
Canada taxes capital gains through an inclusion rate. The rate is 50%: sell an asset for more than its cost and half the gain becomes taxable income, reported on line 12700 of your return. The other half of the gain stays tax free, whatever your income.
The federal layer taxes that half through the 2026 federal brackets, 14% on the first $58,523 of income rising to 33% above $258,482. Your marginal rate on the gain is the bracket the gain lands in, not a flat capital gains rate.
Ontario then taxes the same taxable half a second time. The province keeps no capital gains rate of its own. Its brackets run from 5.05% to 13.16% above $220,000, and its surtax stacks on top of the result.
Both layers are worked out the way a return does it: the tax on all your income with the gain, minus the tax on your income without it. Every bracket crossed and every credit movement is captured in one difference.
Ontario's tables
Ontario rates and the surtax for 2026
Ontario's tax on the gain is its brackets applied to your taxable income with the taxable half included, less a basic personal amount credit of $12,989 at 5.05%. That result is basic Ontario tax. The surtax then adds 20% of basic tax above $5,818 and a further 36% above $7,446 for 2026.
The $150,000 and $220,000 bracket thresholds are fixed amounts that do not rise with indexation. A taxable gain can push basic Ontario tax across a surtax threshold even when your salary never did; the worked example below crosses the first one.
Ontario brackets for 2026, as the calculator applies them
| Ontario bracket | Rate |
|---|---|
| The first $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Above $220,000 | 13.16% |
Worked example
A $40,000 share gain draws $6,115 of tax
You buy shares for $30,000 on March 10, 2021 and sell them for $70,000 on August 14, 2026, with $85,000 of other income. The gain is $40,000. Five years of holding earns nothing here: Canada has no holding-period discount, so the dates matter for the paperwork, never for the tax.
50% of the gain, $20,000, lands in your income. The federal tax on it is $4,100, all inside the 20.5% bracket at that income. Ontario's tax on the same half is $2,015, and the surtax is part of that figure: the gain lifts basic Ontario tax across the $5,818 threshold, so the 20% surtax takes its slice. Combined, the two layers draw $6,115.
One share sale in the 2026 return, Ontario resident
| Step | Amount |
|---|---|
| Sale proceeds | $70,000 |
| Cost base (purchase price) | $30,000 |
| Capital gain | $40,000 |
| Taxable half at the 50% inclusion rate | $20,000 |
| Federal tax on the gain at $85,000 income | $4,100 |
| Ontario tax on the gain, surtax included | $2,015 |
| Combined tax on the gain | $6,115 |
Questions
Frequently asked questions
How much is capital gains tax in Ontario?
50% of the gain is taxable income. The federal side runs 14% to 33% in 2026 depending on your income, and Ontario adds 5.05% to 13.16% plus any surtax. On the worked example, a $40,000 gain for someone earning $85,000 draws $6,115.
Does Ontario have its own capital gains rate?
No. One inclusion rate halves the gain once, and both the federal brackets and Ontario's own brackets and surtax tax that same half. There is no separate provincial capital gains schedule.
What is the Ontario surtax?
A surcharge on basic Ontario tax, which is bracket tax less the basic personal amount credit. For 2026 it is 20% of basic tax over $5,818 plus 36% of basic tax over $7,446.
Is there a holding period that lowers the tax?
No. The inclusion rate is 50% whether you held the asset a month or a decade. Canada's calendar has no long-term rate, so a disposal's dates matter for reporting order only.
Does the lifetime capital gains exemption shelter share gains?
Only qualified small business corporation shares and qualified farm or fishing property. Shares traded on a stock exchange, ETFs, mutual funds and crypto never qualify.
What does the province select in the calculator do?
It swaps the provincial layer's tables. Ontario is preset on this page; pick another province or territory and its own brackets and credits take over, with the federal layer unchanged.
Sources
Where these figures come from
Also on capitalgainstax.net