Landlord Tools
Capital Gains Tax Calculator Canada — Rental Property Sale
Estimate capital gains tax owing when selling a Canadian rental or investment property. Calculates your ACB, 50% taxable gain, and estimated federal + provincial tax.
Sale Details
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Adjusted Cost Base (ACB)
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Tax
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Frequently Asked Questions
How is capital gains tax calculated on a rental property in Canada?+
Capital gain is calculated as your net sale proceeds (sale price minus selling costs) minus your Adjusted Cost Base (ACB — purchase price plus buying costs plus capital improvements). In Canada, 50% of the capital gain is included in your income and taxed at your marginal rate.
What is the Adjusted Cost Base (ACB) of a rental property?+
The ACB is the original purchase price plus all costs of acquisition (legal fees, land transfer tax) plus the cost of capital improvements made during ownership. It does not include maintenance or repairs. A higher ACB reduces your capital gain when you sell.
What is CCA recapture and how does it affect my taxes?+
If you claimed Capital Cost Allowance (CCA) during ownership and sell the property for more than its Undepreciated Capital Cost (UCC), the difference is recaptured and added to your income at 100% — not the 50% capital gains rate. Recapture can significantly increase your tax bill on sale.
Is there a principal residence exemption for rental properties?+
No — the principal residence exemption only applies to a property that was your principal place of residence for all years of ownership. A dedicated rental property does not qualify for the exemption, though a property that was partly rented and partly your home may receive a partial exemption.