Fully Exempt -- No Tax Owed
Because you lived in this property as your principal residence for the entire period you owned it, the full capital gain is exempt from tax under the principal residence exemption.
Total Gain
$182,500.00
Exemption
$182,500.00
Estimated Tax
$0.00
50% Inclusion Amount
$0.00
Net Proceeds
$712,500.00
Understanding capital gains tax on property sales in Canada
If you lived in a property as your main home, you can claim the principal residence exemption. The exemption covers (years designated + 1) / years owned of the total gain. If you lived in the home for the entire time you owned it, the full gain is tax-free. You can only designate one property as your principal residence per year.
In Canada, only 50% of a capital gain is taxable (for gains up to $250,000; above that the rate rises to 66.7%). After applying any exemptions, the remaining gain is multiplied by 50%, and that amount is added to your other income for the year. You pay tax at your marginal rate on the included amount.
Selling costs include real estate agent commissions (typically 3-5% of sale price), legal fees, mortgage discharge fees, staging costs, and any repairs required as a condition of sale. These costs reduce your capital gain because they are subtracted from the sale proceeds when calculating your adjusted cost base.
CRA-Aligned: This calculator uses the 50% capital gains inclusion rate and current federal/provincial tax brackets for 2025. The principal residence exemption formula follows CRA guidelines. Consult a tax professional for your specific situation.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
Related Calculators
Capital Gains Tax Calculator
Calculate CGT with 50% inclusion rate (66.7% over $250K) on capital gains.
Mortgage Calculator
Calculate Canadian mortgage payments with CMHC insurance, stress test, and land transfer tax.
Rental Property Tax Calculator
Calculate tax on rental income with expenses, CCA, and mortgage interest.
Property ROI Calculator
Calculate total return on investment for rental properties with appreciation.