Capital Gains Inclusion Rate
Also known as: Capital gains tax inclusion rate · 50% inclusion
The proportion of a capital gain included in taxable income — currently 50% federally; the 2024 proposal to raise the rate to 66.67% on gains over $250,000 was cancelled 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 provincial tax on profit from residential property sales held under 730 days, effective January 1, 2025 — 20% if held under 365 days, phasing linearly to 0% over days 366-729.
- Federal Anti-Flipping Rule — A federal rule (effective January 1, 2023) deeming residential property sales held less than 365 days to be 100%-included business income, with no Principal Residence Exemption available, unless a qualifying life-event applies.
- Capital Gains × Principal Residence Exemption (PRE) — How the federal Principal Residence Exemption interacts with the 50% capital-gains inclusion rate for BC sellers — only one property per family per year can be designated, and PRE never auto-applies; every principal-residence disposition since 2016 must be reported on Schedule 3 with Form T2091(IND).
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 = {2026},
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. (2026). 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, 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)Click 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 2026-05-08· published 2025-03-21Government Cancels Proposed Capital Gains Inclusion Rate Increasehttps://www.canada.ca/en/department-finance/news/2025/03/government-of-canada-cancels-proposed-capital-gains-inclusion-rate-increase.html
ca.capital_gains.inclusion_rate · v2View in Codex →