Ontario Capital Gain Tax Calculator

How the Ontario Capital Gain Tax Calculator Works

Ontario capital gains tax is calculated based on the difference between the sale price of an asset and its original cost, minus any allowable capital losses. The tax rate depends on your income level and the type of asset sold.

The calculator uses Ontario's progressive tax rates to determine your tax liability. For individuals with taxable income below $47,630, the capital gains tax rate is 50.52%. For those with taxable income between $47,630 and $95,259, the rate is 51.79%. For higher income levels, the rate increases to 53.07%.

How to Use the Calculator

1. Enter the sale price of your asset in the "Sale Price" field.
2. Enter the original cost of the asset in the "Original Cost" field.
3. Select your income level from the dropdown menu.
4. Click the "Calculate" button to see your capital gain tax.

The calculator will display your capital gain amount, the applicable tax rate, and your total capital gain tax.

Formula Used

The capital gain is calculated as:

The capital gain tax is then calculated based on your income level:

Where the tax rate depends on your taxable income:

• Taxable Income ≤ $47,630: 50.52%
• $47,630 < Taxable Income ≤ $95,259: 51.79%
• Taxable Income > $95,259: 53.07%

Worked Examples

Example 1: Low Income

If you sell an asset for $50,000 and it cost you $30,000, your capital gain is $20,000. If your taxable income is $40,000, your capital gain tax is:

Example 2: Medium Income

If you sell an asset for $100,000 and it cost you $60,000, your capital gain is $40,000. If your taxable income is $80,000, your capital gain tax is:

Example 3: High Income

If you sell an asset for $200,000 and it cost you $100,000, your capital gain is $100,000. If your taxable income is $120,000, your capital gain tax is: