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Capital Gains Inclusion Rate

Also known as: Capital gains tax inclusion rate · 50% inclusion

Half of a capital gain is included in taxable income federally, and that has not changed. Ottawa proposed raising it to 66.67% on gains above $250,000 in 2024, then cancelled the plan on March 21, 2025.

The capital gains inclusion rate is the proportion of a realized capital gain that is included in taxable income. The rate has been 50% federally since October 18, 2000. The April 2024 federal budget proposed raising the inclusion rate to 66.67% on capital gains over $250,000 per individual per year (and on all gains realized by corporations and most trusts), but the proposal was officially cancelled by the Government of Canada on March 21, 2025; the rate remains 50% for all dispositions.

For non-principal-residence real estate (investment properties, rental units), the 50% inclusion rate applies to the entire gain on disposition. Principal residences are typically exempt under the Principal Residence Exemption, though the sale must still be reported on Schedule 3 of the personal tax return and Form T2091(IND) to claim the exemption.

BC Home Flipping Tax — A BC tax on the profit when you sell a home you have owned less than 730 days.
Federal Anti-Flipping Rule — A federal rule that treats the profit on a home sold within 365 days as fully taxable business income rather than a capital gain.
Capital Gains × Principal Residence Exemption (PRE) — How the federal principal residence exemption meets the 50% capital gains inclusion rate when you sell a BC property.

@misc{bronsonjob-ca_capital_gains_inclusion_rate,
  author       = {Job, Bronson},
  title        = {{Federal capital gains inclusion rate}},
  howpublished = {BC Real Estate Codex},
  year         = {2000},
  url          = {https://www.bronsonjob.com/codex#ca.capital_gains.inclusion_rate},
  urldate      = {2026-11-04},
  note         = {Fact ID: ca.capital_gains.inclusion_rate, version 2.}
}

APA — Press, journalism

Job, B. (2000). Federal capital gains inclusion rate. *BC Real Estate Codex*. Retrieved 2026-11-04, from https://www.bronsonjob.com/codex#ca.capital_gains.inclusion_rate

Plain link — Slack, email, Twitter

Federal capital gains inclusion rate — Bronson Job PREC, BC Real Estate Codex (2026-11-04). https://www.bronsonjob.com/codex#ca.capital_gains.inclusion_rate

Fact id: ca.capital_gains.inclusion_rate · v2 · machine-readable: /api/v1/facts/by-id/ca.capital_gains.inclusion_rate.json

License: This definition is licensed under CC BY 4.0. Cite as: "Capital Gains Inclusion Rate", BC Real Estate Glossary by Bronson Job, https://www.bronsonjob.com/glossary/capital-gains-inclusion-rate.

Bronson Job PREC, REALTOR® at Momentum Realty Inc.. GVR Member #6015742 · FVREB Member #FJOBBR

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See also