Ontario Capital Gains Tax Rate Calculator

Calculate your Ontario capital gains tax with our free tax rate calculator. Get accurate results based on current provincial tax laws and understand how capital gains are taxed in Ontario.

How the Ontario Capital Gains Tax Calculator Works

Capital gains tax is a tax on the profit you make when you sell 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.

Capital Gains Formula

Capital Gains = Sale Price - Cost Basis

Capital Gains Tax = Capital Gains × Tax Rate

The Ontario government taxes capital gains at different rates depending on the type of asset and the holding period. The main types of assets are:

Residential property
Business property
Investment property
Other assets (stocks, bonds, etc.)

For residential property, the holding period determines the tax rate. If you held the property for more than one year, you pay the lower long-term capital gains tax rate. If you held it for less than one year, you pay the higher short-term capital gains tax rate.

How to Use the Ontario Capital Gains Tax Calculator

Using our Ontario Capital Gains Tax Calculator is simple. Just follow these steps:

Enter the sale price of your asset in the "Sale Price" field.
Enter the cost basis (what you originally paid for the asset) in the "Cost Basis" field.
Select the type of asset you're selling from the dropdown menu.
Enter the number of years you held the asset in the "Holding Period" field.
Click the "Calculate" button to see your capital gains tax.

Note: The calculator uses current Ontario tax rates as of the latest available data. Tax laws can change, so always consult with a tax professional for personalized advice.

Ontario Capital Gains Tax Rates

Ontario has different capital gains tax rates depending on the type of asset and the holding period. Here are the current rates:

Asset Type	Holding Period	Tax Rate
Residential Property	More than 1 year	50% of the capital gain
Residential Property	1 year or less	50% of the capital gain
Business Property	More than 1 year	50% of the capital gain
Business Property	1 year or less	50% of the capital gain
Investment Property	More than 1 year	50% of the capital gain
Investment Property	1 year or less	50% of the capital gain
Other Assets	More than 1 year	50% of the capital gain
Other Assets	1 year or less	50% of the capital gain

In addition to the capital gains tax, you may also be subject to provincial sales tax (PST) on the sale of certain assets. The PST rate in Ontario is currently 8%.

Ontario Capital Gains Tax Examples

Let's look at a few examples to see how the Ontario Capital Gains Tax Calculator works.

Example 1: Selling a Residential Property

You bought a residential property in 2015 for $300,000 and sold it in 2023 for $500,000. What is your capital gains tax?

Capital Gains = $500,000 - $300,000 = $200,000

Since you held the property for more than one year, you pay the long-term capital gains tax rate of 50%.

Capital Gains Tax = $200,000 × 50% = $100,000

Example 2: Selling a Business Property

You bought a business property in 2020 for $100,000 and sold it in 2022 for $150,000. What is your capital gains tax?

Capital Gains = $150,000 - $100,000 = $50,000

Since you held the property for more than one year, you pay the long-term capital gains tax rate of 50%.

Capital Gains Tax = $50,000 × 50% = $25,000

Example 3: Selling Other Assets

You bought a stock in 2018 for $10,000 and sold it in 2020 for $20,000. What is your capital gains tax?

Capital Gains = $20,000 - $10,000 = $10,000

Since you held the stock for more than one year, you pay the long-term capital gains tax rate of 50%.

Capital Gains Tax = $10,000 × 50% = $5,000

Frequently Asked Questions

What is capital gains tax?

Capital gains tax is a tax on the profit you make when you sell an asset for more than you paid for it. In Ontario, capital gains are taxed at different rates depending on the type of asset and the holding period.

How do I calculate my capital gains tax in Ontario?

You can calculate your capital gains tax in Ontario by subtracting the cost basis of the asset from the sale price. Then, multiply the capital gain by the applicable tax rate based on the type of asset and the holding period.

What is the capital gains tax rate in Ontario?

The capital gains tax rate in Ontario is 50% of the capital gain, regardless of the type of asset or the holding period. However, there are some exceptions and special rules for certain types of assets.

Do I have to pay capital gains tax on every sale?

No, you only have to pay capital gains tax on the profit you make when you sell an asset for more than you paid for it. If you sell an asset for less than you paid for it, you have a capital loss, which can offset capital gains from other sales.

Where can I find more information about capital gains tax in Ontario?

You can find more information about capital gains tax in Ontario on the Ontario government website. You can also consult with a tax professional for personalized advice.