How the Capital Gains Tax Calculator works
Estimate tax on a capital gain. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this capital gains tax calculator to estimate tax on an investment or asset sale. It is useful for planning a sale before fees, inclusion rates and marginal tax rates turn a gain into an after-tax number.
Formula
Estimated tax = (sale price - purchase price - costs) x inclusion rate x marginal tax rate
- Purchase price is the original cost basis used for the estimate.
- Sale price is the expected or actual selling price.
- Costs reduce the capital gain.
- Inclusion rate and marginal tax rate estimate taxable gain and tax owing.
Worked example
For a $50,000 purchase, $80,000 sale, $1,000 in costs, 50% inclusion rate and 30% marginal tax rate, the calculator estimates tax on the taxable portion of the gain.
Common mistakes
- Ignoring adjusted cost base, commissions or selling costs.
- Using the wrong inclusion rate for your jurisdiction or year.
- Forgetting that losses, exemptions or account type can change tax treatment.
FAQs
Is capital gains tax based on the full sale price?
No. It is generally based on the gain, not the full proceeds, and may use an inclusion rate.
Does this apply inside registered accounts?
Tax treatment can differ by account type. Registered accounts may not use normal capital gains rules.
Should I verify the inclusion rate?
Yes. Tax rules can change and can vary by jurisdiction.