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.
Related terms
- 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.
See also
Use any of these formats. Codex content is licensed under CC BY 4.0 — attribution required.
@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 = {2026-05-08},
note = {Fact ID: ca.capital_gains.inclusion_rate, version 2.}
}Job, B. (2000). Federal capital gains inclusion rate. *BC Real Estate Codex*. Retrieved 2026-05-08, from https://www.bronsonjob.com/codex#ca.capital_gains.inclusion_rate
Federal capital gains inclusion rate — Bronson Job PREC, BC Real Estate Codex (2026-05-08). 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
Verified sources (2)· re-verified 2026-08-02Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CRAretrieved 2026-05-08Line 12700 — Capital gainshttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains.html
- Government of Canadaretrieved 2026-08-02· published 2025-03-21What’s new for capital gains — inclusion rate stays at one-halfhttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/whats-new-capital-gains.html
ca.capital_gains.inclusion_rate · v2View in Codex →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.
