Capital gains inclusion rate
The share of a capital gain that is taxable, and how the rules changed, with the date of each official statement.
Current inclusion rate
One-half (50%)
The CRA has reverted to administering the currently enacted capital gains inclusion rate of one-half. (CRA, January 31, 2025). This is the rate the CRA says it administers; the Department of Finance’s later statement (September 15, 2026) lists the proposed increase as cancelled.
Source: CRA: Update on the CRA's administration of the proposed capital gains taxation changes (page dated January 31, 2025) official
The rules by date
September 15, 2026
Increase cancelled
The Department of Finance's release lists "cancelling the proposed increase in the capital gains inclusion rate". The release gives no effective date for this item.
Department of Finance Canada news release, September 15, 2026: Productivity Mega Deduction official
September 15, 2026
Lifetime capital gains exemption
The same release lists "increasing the Lifetime Capital Gains Exemption limit to $1.275 million for eligible entrepreneurs". It gives no effective date, and we have not read the law or a CRA page that applies the figure, so we do not say it is in force.
Department of Finance Canada news release, September 15, 2026: Productivity Mega Deduction official
January 31, 2025
CRA keeps the one-half rate
The CRA "has reverted to administering the currently enacted capital gains inclusion rate of one-half", and says all capital gains realized before January 1, 2026 are subject to that rate (unless an exemption applies). Finance had announced a new effective date of January 1, 2026 for the proposed increase.
June 25, 2024
Lifetime exemption of $1.25 million
The CRA page says the increase of the lifetime capital gains exemption limit to $1.25 million keeps its start date, for dispositions on or after June 25, 2024, and that indexation resumes in 2026.
The proposal that was not adopted
The proposed increase would have taken the rate from one-half to two-thirds on gains above $250,000 a year for individuals, and on all gains for corporations and most trusts. It was proposed, then deferred, and the Department of Finance now lists it as cancelled (see above).
What the official pages do not say
- The CRA's own page on reporting capital gains (line 12700, page dated February 5, 2026) does not state the inclusion rate fraction, so the one-half rate on this page rests on the CRA's January 31, 2025 statement.
- The Department of Finance's September 15, 2026 release gives no effective date for the cancellation or for the $1.275 million exemption limit.
- We show no rules for provincial treatment, principal residence, or specific exemptions: they are not covered here.
What changed
- Sep 15, 2026Finance lists the proposed inclusion rate increase as cancelled, and a $1.275 million lifetime exemption limit.
- Jan 31, 2025The CRA said it administers the one-half inclusion rate.
Dates are the dates of the official statements.
Before you rely on this
Whether and how much of a gain is taxable depends on the type of property, any exemption, and your situation. This page states only the inclusion rate and dated official statements. Confirm with the CRA or a tax professional. General information, not tax advice.