Are gains on shares and ETFs taxable in Canada?

Yes. When you sell shares or ETFs for more than you paid, the profit is a capital gain. As per Canadian tax law, 50% of the capital gain is included in your income for the year (the standard inclusion rate), and that included half is taxed at your marginal tax rate, which depends on your province and total income. Canada does not apply a separate short-term or long-term rate. This is not tax advice.

How is the tax calculated in 2026?

Take your capital gain (sale amount minus purchase amount), include 50% of it in your income under the standard inclusion rate, then apply your marginal tax rate to that included half. Because the marginal rate depends on your province and income, this tool asks you to enter it and does not invent any rate. Gains inside a registered account such as a TFSA are generally not taxed, and an RRSP defers tax until withdrawal.

Yes. A capital loss can be used against capital gains: it first offsets gains in the same year, and any excess can be carried back three years or carried forward indefinitely against future capital gains, subject to the rules. Keep your broker statements as proof. This is not tax advice.

Free tool

Capital Gains Tax Calculator 2026

Enter your purchase and sale amounts to see your gain in C$. Gains on shares, ETFs and crypto are taxed as per Canadian tax law (CRA) — only part of the gain is included in income at your marginal rate. This tool shows your gross gain, not tax advice.

Total purchase amount (C$)

Total sale amount (C$)

Your marginal tax rate (%)

This tool is for information and guidance only. It applies the standard 50% capital gains inclusion rate as per Canadian tax law and then the marginal tax rate you enter; it does not invent a rate. Results do not account for your full personal situation, provincial differences, registered accounts (TFSA / RRSP), commissions or other rules, and crypto held as a business is taxed differently. This is not tax advice and does not replace a professional opinion. Rules can change. When in doubt, consult the Canada Revenue Agency (CRA) or a qualified adviser.

The principle: the 50% capital gains inclusion

In Canada, when you sell shares or ETFs for more than you paid, the profit is a capital gain. As per Canadian tax law, 50% of that gain is included in your income for the year (the standard inclusion rate), and the included half is then taxed at your marginal tax rate, which depends on your province and total income. Canada does not apply a separate short-term or long-term rate, so how long you held the asset does not change the inclusion.

Markets and intermediaries are overseen by CIRO and the provincial securities commissions coordinated through the Canadian Securities Administrators (CSA), and trades take place on exchanges such as the TSX and TSXV.

Stocks and ETFs

Shares: the gain on a sale is a capital gain, of which 50% is included in income and taxed at your marginal rate.

ETFs: most ETFs are treated the same way on disposal. Some funds also distribute income during the year (dividends, interest or capital gains), which is taxed separately, so check your annual tax slips.

Gains realised inside a registered account such as a TFSA are generally not taxed, and an RRSP defers tax until withdrawal. The 50% inclusion applies to gains in a non-registered (taxable) account.

Dividends

Dividends are taxed separately from capital gains. Eligible Canadian dividends benefit from the dividend tax credit, while foreign dividends are taxed as income and may have foreign withholding tax. This is a different treatment from the gain on the sale of the shares. Keeping your annual broker statements helps with reporting.

What about crypto?

The Canada Revenue Agency (CRA) generally treats crypto as a commodity. For an investor, disposing of crypto (selling it, trading one coin for another, or spending it) can trigger a capital gain with the same 50% inclusion. If you trade as a business, the profit can instead be fully taxable as business income. The tool applies the 50% capital gains inclusion for crypto.

What you need to report

Capital gains and losses are reported on your income tax return for the year of the disposal. Your broker provides account statements to support this. This content is for information only and is not investment or tax advice.

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Frequently asked questions

Are gains on shares and ETFs taxable in Canada?: Yes. When you sell shares or ETFs for more than you paid, the profit is a capital gain. As per Canadian tax law, 50% of the capital gain is included in your income for the year (the standard inclusion rate), and that included half is taxed at your marginal tax rate, which depends on your province and total income. Canada does not apply a separate short-term or long-term rate. This is not tax advice.
How is the tax calculated in 2026?: Take your capital gain (sale amount minus purchase amount), include 50% of it in your income under the standard inclusion rate, then apply your marginal tax rate to that included half. Because the marginal rate depends on your province and income, this tool asks you to enter it and does not invent any rate. Gains inside a registered account such as a TFSA are generally not taxed, and an RRSP defers tax until withdrawal.
Can I use my losses?: Yes. A capital loss can be used against capital gains: it first offsets gains in the same year, and any excess can be carried back three years or carried forward indefinitely against future capital gains, subject to the rules. Keep your broker statements as proof. This is not tax advice.
Is crypto taxed the same way as shares?: Broadly, yes, for investors. The Canada Revenue Agency (CRA) generally treats crypto as a commodity, so disposing of it (selling, trading one coin for another, or spending it) can trigger a capital gain with the same 50% inclusion. If you trade as a business, however, the profit can instead be fully taxable as business income. The tool applies the 50% capital gains inclusion for crypto and flags the business-income case.
What do I need to report?: Capital gains and losses are reported on your income tax return for the year of the disposal. Your broker provides account statements, and in Canada markets and intermediaries are overseen by CIRO and the provincial securities commissions (CSA), with trades taking place on exchanges such as the TSX and TSXV. Keep your annual broker statements as proof. This is not tax advice.