Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
This calculator helps you calculate capital gains tax in Alberta on the sale of property and stocks. Capital gains are included in income at 50%; the two-thirds rate proposed in the 2024 federal budget was cancelled in March 2025 and never took effect.
What is capital gains tax?
Capital gains tax is a fee paid on the increase in value of investments or assets from their original purchase price. When sold for more than the purchase price, this results in a capital gain, which is taxable. Capital gains can be “realized” when sold, or “unrealized” when value increases but the asset isn’t sold yet. While unrealized gains aren’t taxed until sold, it’s essential to consult a tax professional for personalized advice due to varying financial situations.
What is a capital gains loss?
A capital loss occurs when you sell an investment or asset for less than its original purchase price. This loss is the difference between the purchase price and the lower sale price. Similar to capital gains, capital losses can be “realized” when the sale occurs, or “unrealized” when the asset’s value decreases but hasn’t been sold. While unrealized losses can indicate a drop in value, they aren’t counted for tax purposes until the asset is sold. Realized capital losses can offset capital gains and reduce taxable income. As with all financial matters, consulting a tax professional is advisable to understand the implications for your specific situation.
How to avoid or reduce capital gains in Alberta
There are strategies that can be used to reduce or fully avoid paying capital gains in Canada. Since capital gains and losses can be netted against each other, capital losses incurred can be used to reduce your overall capital gain and the overall tax that you will have to pay.
Capital losses can be realized by selling off low performing stocks which can then be applied to capital gains. However, it is important that you follow the rules outlied by the CRA as purchasing these stocks quickly back can be deemed as a superficial loss. If the CRA deems a superficial loss you will be unable to use the losses to offset the capital gains.
If you are to sell your primary residence you may be able to avoid paying capital gains through the primary residence exemption so long as you meet the criteria.
Alberta capital gain tax rates
These are the 2026 combined federal and Alberta marginal rates on other income (wealthvieu calculation from the CRA’s 2026 rates in the T4127 payroll formulas). A taxable capital gain is added to your income and taxed at these rates.
| 2026 Taxable Income | Combined Marginal Tax Rate |
|---|---|
| first $58,523 | 22.00% |
| over $58,523 up to $61,200 | 28.50% |
| over $61,200 up to $117,045 | 30.50% |
| over $117,045 up to $154,259 | 36.00% |
| over $154,259 up to $181,440 | 38.00% |
| over $181,440 up to $185,111 | 41.00% |
| over $185,111 up to $246,813 | 42.00% |
| over $246,813 up to $258,482 | 43.00% |
| over $258,482 up to $370,220 | 47.00% |
| over $370,220 | 48.00% |
Capital gains inclusion rate in Canada
The inclusion rate is the share of a capital gain that is added to your taxable income. It is 50% (1/2) for all capital gains, with no $250,000 threshold.
Budget 2024 proposed raising the inclusion rate from one-half to two-thirds on capital gains above $250,000 a year for individuals, and on all capital gains of corporations and trusts, from June 25, 2024. The government deferred the change to January 1, 2026 and then cancelled it on March 21, 2025, so the two-thirds rate never took effect.
What is a capital gain in Canada?
A capital gain occurs in Canada when you sell capital property for more than the adjusted cost base if you were to sell the capital property for less than the adjusted cost base (ABC) you would have a capital loss.
Adjusted Cost Base (ABC): The initial cost of the capital property plus any other costs asociated with purchasing or making improvements the capital property, such as commissions, accounting and legal fees or improvements.
How to calculate tax on capital gains?
The formula to calculate tax on captail gains includes calculating the capital gain and multiplying the capital gain by the inclusion rate and tax rate.
Proceeds of disposition less Adjusted cost base (ACB) plus Expenses equals Captial gain / loss
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