Capital Gains Inclusion Rate
The portion of a capital gain that is added to your taxable income, raised above $250,000 from June 25, 2024.
Capital gains in Canada are not taxed at a flat rate, only a portion is included in your taxable income and taxed at your marginal rate. The longstanding rate was 50%. Effective June 25, 2024, the federal government raised the inclusion rate to 66.67% on annual gains above $250,000 for individuals (corporations and most trusts get the higher rate on every dollar). The first $250,000 of personal gains each year stays at 50%. The principal residence exemption still wipes out the gain on your main home. Gains inside a TFSA, RRSP, or FHSA are not taxed at all.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.