Ontario Canada Capital Gains Tax Calculator

Calculate your Ontario capital gains tax in Canada with this free calculator. Understand how to report and pay taxes on capital gains in Ontario.

How Ontario Capital Gains Tax Works

Capital gains tax is a tax on the profit you make from selling an asset for more than you paid for it. In Ontario, capital gains are taxed differently depending on the type of asset you sell and how long you held it.

Types of Capital Gains

There are two main types of capital gains in Ontario:

Short-term capital gains: These occur when you sell an asset for a profit within 12 months of acquiring it. Short-term gains are taxed as ordinary income.
Long-term capital gains: These occur when you sell an asset for a profit after holding it for more than 12 months. Long-term gains are taxed at a lower rate than ordinary income.

Tax Rates for Capital Gains

The tax rates for capital gains in Ontario are as follows:

Type of Gain	Tax Rate
Short-term capital gains	Taxed at your marginal income tax rate
Long-term capital gains	50% of the gain (for most assets)

Note: The long-term capital gains tax rate may be different for certain assets, such as residential property or small business stock.

Calculation Method

To calculate your Ontario capital gains tax, follow these steps:

Determine the cost basis of the asset (what you originally paid for it).
Determine the selling price of the asset.
Calculate the capital gain or loss by subtracting the cost basis from the selling price.
Determine whether the gain is short-term or long-term.
Apply the appropriate tax rate to the capital gain.

Capital Gain = Selling Price - Cost Basis

Capital Gains Tax = Capital Gain × Tax Rate

Example Calculation

Suppose you bought a stock for $10,000 and sold it for $15,000 after holding it for 18 months. Here's how to calculate your capital gains tax:

Capital Gain = $15,000 - $10,000 = $5,000
Since you held the stock for more than 12 months, this is a long-term capital gain.
Capital Gains Tax = $5,000 × 50% = $2,500

Worked Examples

Example 1: Short-Term Capital Gain

You bought a stock for $5,000 and sold it for $7,000 after holding it for 6 months.

Capital Gain = $7,000 - $5,000 = $2,000
Since you held the stock for less than 12 months, this is a short-term capital gain.
Capital Gains Tax = $2,000 × (your marginal income tax rate)

Example 2: Long-Term Capital Gain

You bought a house for $300,000 and sold it for $400,000 after holding it for 3 years.

Capital Gain = $400,000 - $300,000 = $100,000
Since you held the property for more than 12 months, this is a long-term capital gain.
Capital Gains Tax = $100,000 × 50% = $50,000

Frequently Asked Questions

What is the difference between short-term and long-term capital gains?: Short-term capital gains are taxed at your marginal income tax rate, while long-term capital gains are taxed at a lower rate (usually 50%).
How do I report capital gains in Ontario?: You must report capital gains on your annual tax return using Form T1 General. You will need to provide details of each asset you sold, the cost basis, selling price, and the date of acquisition.
Are there any exemptions for capital gains tax in Ontario?: Yes, there are several exemptions, including the principal residence exemption, small business stock exemption, and the life estate exemption.
What happens if I have a capital loss?: Capital losses can be used to offset capital gains or other income in the same year. Any unused losses can be carried forward to future years.
Can I deduct capital losses from my income?: Yes, you can deduct capital losses from your income to reduce your taxable income. However, you cannot claim a refund for capital losses.