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This calculator helps you calculate capital gains tax in Yukon on the sale of property, stocks, and other investments at the 50% capital gains inclusion rate (the proposed increase to two-thirds was cancelled in March 2025).
Quick answer: On a $200,000 capital gain in Yukon, $100,000 (50%) is added to your taxable income. With no other income, the tax on that $100,000 is about $24,174 before credits (20.40% on the first $58,523 and 29.50% on the rest); if your other income is already above $500,000, it is $48,000 (48.00%).
What is capital gains tax in 2026?
Capital gains tax is the tax you pay on the increase in value of an investment or asset from its original purchase price. When you sell an asset for more than you paid, the difference is a capital gain, and it is taxable. Capital gains can be:
- Realized — the gain is triggered when you sell the asset
- Unrealized — the value has increased but you have not sold yet (not taxable until sold)
Capital gains inclusion rate in 2026
The inclusion rate is the share of a capital gain added to your taxable income. It is 50% (1/2) for individuals, corporations and trusts, with no $250,000 threshold.
Budget 2024 proposed raising it to two-thirds on individuals’ gains above $250,000 a year, and on all 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.
Combined capital gains tax rates in Yukon
Your effective capital gains tax rate depends on your marginal tax bracket. Here are the combined federal + Yukon rates on capital gains:
| Taxable Income Bracket | Marginal Rate | Capital Gains Rate (50% inclusion) |
|---|---|---|
| Up to $58,523 | 20.40% | 10.20% |
| $58,523 – $117,045 | 29.50% | 14.75% |
| $117,045 – $181,440 | 36.90% | 18.45% |
| $181,440 – $258,482 | 41.80% | 20.90% |
| $258,482 – $500,000 | 45.80% | 22.90% |
| Over $500,000 | 48.00% | 24.00% |
For a detailed breakdown of all Yukon income brackets, see the Yukon tax brackets guide.
Example: capital gains on a $500,000 property sale
Suppose you sell a rental property in Whitehorse for $500,000 that you purchased for $350,000 with $10,000 in improvement costs:
| Item | Amount |
|---|---|
| Proceeds of disposition | $500,000 |
| Adjusted Cost Base (ACB) | $350,000 |
| Improvements & expenses | $10,000 |
| Capital gain | $140,000 |
| Taxable capital gain (50% inclusion) | $70,000 |
The $70,000 taxable portion is added to your other income and taxed at your marginal rate.
What is the Adjusted Cost Base (ACB)?
The Adjusted Cost Base (ACB) is the original cost of a capital property plus any costs associated with purchasing or improving the property, including:
- Purchase commissions and legal fees
- Improvements and renovations (not repairs)
- Accounting fees related to the acquisition
When you sell a capital property for more than the ACB, you have a capital gain. If you sell for less than the ACB, you have a capital loss, which can offset capital gains and reduce your taxable income.
Capital gains exemptions
Not all asset sales trigger capital gains tax:
- Principal Residence Exemption — your primary home is fully exempt
- Lifetime Capital Gains Exemption (LCGE) — up to $1,250,000 (2025) on qualifying small business shares and farm/fishing property
- TFSA gains — investments held inside a TFSA grow tax-free
- RRSP/RRIF — not subject to capital gains tax while inside the account (taxed as income on withdrawal)
Northern Residents Deduction
Yukon residents may also claim the Northern Residents Deduction, which reduces your overall taxable income by up to $22 per day. This can lower the marginal rate applied to your capital gains.
Frequently asked questions
How is capital gains tax calculated in Yukon?
Half of a capital gain (the 50% inclusion rate) is included in income. The included amount is taxed at your combined federal and Yukon marginal rate, ranging from 20.40% to 48.00% in 2026.
What is the capital gains inclusion rate in Canada for 2026?
50% on all capital gains, for individuals, corporations and trusts. The proposed two-thirds rate was cancelled on March 21, 2025.
Is the sale of a principal residence taxable in Yukon?
No. Your principal residence is exempt from capital gains tax under the Principal Residence Exemption, which applies across all of Canada.
Related guides
- Yukon tax brackets — Territorial and federal income tax rates
- Yukon sales tax calculator — Only 5% GST applies
- Yukon mortgage rates 2026 — Compare current rates in Whitehorse
- Yukon mortgage affordability calculator — How much home can you afford?
- Yukon real estate commission calculator — Commission on property sales
- Yukon land transfer tax calculator — Property transfer costs
- TFSA calculator — Tax-free investment growth
- FHSA calculator — First Home Savings Account (tax-free gain on first home)
- RRSP withdrawal calculator — Avoid capital gains with registered accounts
- Income percentile calculator — See how your income compares
- Alberta capital gains tax calculator — Compare to Alberta rates
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