British Columbia 2025 Capital Gains Tax Calculator
This calculator helps estimate the capital gains tax in British Columbia for the 2024 tax year. This calculator also compares the capital gain you would pay based on the current inclusion rate and compares it to the new inclusion rate introduced in the 2024 budget which will come into effect on January 1, 2026.
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.
Capital gains tax rates in British Columbia
This table shows the British Columbia provincial tax rates for the 2024 tax year as well as the federal rate combined.
| 2024 Taxable Income | Other Income Marginal Tax Rate |
|---|---|
| first 47937 | 20.06% |
| over $47,937 up to $55,867 | 22.7% |
| over $55,867 up to $95,875 | 28.2% |
| over $95,875 up to $110,076 | 31.% |
| over $110,076 up to $111,733 | 32.79% |
| over $111,733 up to $133,664 | 38.29% |
| over $133,664 up to $173,205 | 40.7% |
| over $173,205 up to $181,232 | 44.02% |
| over $181,232 up to $246,752 | 46.12% |
| over $246,752 up to $252,752 | 49.8% |
| over $252,752 | 53.5% |
Here are the 2025 tax rates for Canada and British Columbia combined. While the tax rates for 2025 stayed the same when compared to 2024, the taxable income amounts within each bracket has changed from the prior year. For example, the first combined bracked in 2024 was taxed at 20.06% on the first $47,937 of income which is now 20.06% on the first $49,279 in 2025.
| 2025 Taxable Income | Other Income Marginal Tax Rate |
|---|---|
| first $49,279 | 20.06% |
| over $49,279 up to $57,375 | 22.7% |
| over $57,375 up to $98,560 | 28.2% |
| over $98,560 up to $113,158 | 31.% |
| over $113,158 up to $114,750 | 32.79% |
| over $114,750 up to $137,407 | 38.29% |
| over $137,407 up to $177,882 | 40.7% |
| over $177,882 up to $186,306 | 44.02% |
| over $186,306 up to $253,414 | 46.12% |
| over $253,414 up to $259,829 | 49.8% |
| over $259,829 | 53.5% |
New capital gains tax in Canada
New changes were made to capital gains tax in Canada which target high income individuals who realize substantial capital gains each year. This change can also have a impact on individuals who are disposing of other personal property that would not be expempt under the principal tax exemption such as cottages, rental properties, farms and shares of private corporations.
There were changes to the tax in Canada that came into effect on June 25th, 2024 these are the changes and how they will impact tax on capital gains.
- The amount of capital gains that will be increased from 50% (1/2) to 67% (2/3) on capital gains in excess of $250,000 in a year.
- For capital gains that are under $250,000 in a year the inclusion rate for individuals will remain at 50%.
- The inclusion rate for capital gains for corporations and trusts will increase to 67% on all capital gains.
Capital gains tax inclusion rates under new rules
These are the new inclusion rates under the rules effective June 25th, 2024:
| Amount of Capital Gain | Inclusion Rate |
|---|---|
| Below $250,000 | 50% (1/2) |
| Above $250,000 | 67% (2/3) |
British Columbia capital gains tax on property
In British Columbia there is capital gain tax that will need to be calculated on the sale of property. The tax that you will need to pay are based on a few factors such as your current marginal tax rate, applicable tax credits and the total amount of the capital gain that you have realized.
Since capital gains are included as income on your personal tax return, you will have to pay taxes based on your marginal tax rate for British Columbia as well as the federal tax rate.
There is an inclusion rate on capital gains which helps to determine how much should be included as a part of income. While this inclusion rate is currently 50% of the capital gains, there is a proposed new inclusion rate that was introduced in the federal 2024 budget. This change would increase the inclusion rate to 67% for capital gains in excess of $250,000 for individuals in a year. While this inclusion rate was supposed to take effect June 25th, 2024 it has been deferred to January 1, 2026.
This British Columbia capital gains tax calculator uses the current inclusion rates and compares them to the new inclusion rate to show the difference in recognizing capital gains now vs. when the new inclusion rate would be introduced. If you are selling your primary residence in British Columbia, the principal residency exemption will allow you to avoid paying capital gains tax on any capital gain that arises.
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
