I sold a Canadian rental property and made a profit of $600,000. I’m in the highest tax bracket. How much capital gains tax will I pay based on the recent changes to the capital gains tax rules?
Capital Gains Tax on Real Estate Sales in Canada
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Hi Chris,
The Government of Canada increased the capital gains inclusion rate from 50% to 67% for property sales made after June 24, 2024. You will owe $189,917 of capital gains tax based on the new rules, which is calculated as follows:
1) $250,000 x 50% inclusion rate x 53% marginal tax rate = $66,250
2) $350,000 x 67% inclusion rate x 53% marginal tax rate = $123,667
Total Capital Gains Tax Payable = ($66,250 + $123,667) = $189,917
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