CRA (canada.ca) · 2026
Capital gains tax on property in Ontario
Canada has no separate capital gains tax. One-half of the gain is added to your income for the year and taxed at your federal and Ontario marginal rates. That is why the province you live in changes the answer.
The Ontario figures, with their sources
- One-half of a capital gain is taxable in Canada, so a $100,000 gain on a property in Ontario adds $50,000 to income for the year.Source: CRA, Calculating and reporting your capital gains and losses.
- The top Ontario marginal rate for 2026 is 13.16%, charged on income over $220,000.Source: Canada Revenue Agency (canada.ca), current year tax rates and income brackets.
- On a $100,000 gain with $100,000 of other income, the estimated tax in Ontario is $17,486, which is 17.5% of the gain.Source: PropertyGainsTax, how the estimate is calculated.
A worked example for Ontario
A property bought for $300,000 and sold for $400,000 produces a gain of $100,000. One-half of that, $50,000, is added to income. For someone with $100,000 of other income living in Ontario, the estimated tax is $17,486, which is 17.5% of the gain. This is an estimate for general information, not tax advice.
Work out your own figures in the Canada calculator
Ontario tax brackets for 2026
| Taxable income | Ontario rate |
|---|---|
| $0 to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| over $220,000 | 13.16% |
Federal brackets, charged on top
| Taxable income | Federal rate |
|---|---|
| $0 to $58,523 | 14.00% |
| $58,523 to $117,045 | 20.50% |
| $117,045 to $181,440 | 26.00% |
| $181,440 to $258,482 | 29.00% |
| over $258,482 | 33.00% |
Common questions
Common questions
How much capital gains tax will I pay on a property in Ontario?
It depends on the gain and on your other income, because Canada has no separate capital gains tax. One-half of the gain is added to your income and taxed at your federal and Ontario marginal rates. On a $100,000 gain with $100,000 of other income, the estimated tax is $17,486, which is 17.5% of the gain. Enter your own figures in the Canada calculator to see the estimate for your sale.
What are the Ontario tax brackets used in this estimate?
Ontario charges 5.05% on income $0 to $53,891, 9.15% on income $53,891 to $107,785, 11.16% on income $107,785 to $150,000, 12.16% on income $150,000 to $220,000, 13.16% on income over $220,000. These are the 2026 brackets, taken from the published rates and last checked on 6 September 2026. Federal tax is charged on top.
Do I pay capital gains tax when I sell my home in Ontario?
Usually not. Where the property was your principal residence for every year you owned it, the gain is exempt, though the sale must still be reported on Schedule 3 and designated on Form T2091(IND). The exemption is federal, so it works the same way in every province and territory.
Every province and territory
- Capital gains tax in Alberta
- Capital gains tax in British Columbia
- Capital gains tax in Manitoba
- Capital gains tax in New Brunswick
- Capital gains tax in Newfoundland and Labrador
- Capital gains tax in Northwest Territories
- Capital gains tax in Nova Scotia
- Capital gains tax in Nunavut
- Capital gains tax in Prince Edward Island
- Capital gains tax in Quebec
- Capital gains tax in Saskatchewan
- Capital gains tax in Yukon
Sources
- Calculating and reporting your capital gains and losses (inclusion rate)
- Prime Minister cancels proposed capital gains tax increase, 21 March 2025
- Current year tax rates and income brackets, 2026 (federal and provincial)
- Revenu Québec, income tax rates for 2026
- Principal residence and other real estate (designation, half-hectare limit, flipping rule)
- Income Tax Folio S1-F3-C2, Principal Residence (exemption formula, paragraph 2.20)
Rates last checked against Canada Revenue Agency (canada.ca) on 6 September 2026. Estimates for general information only, not tax advice. A qualified adviser should be used for a decision.