HomeCalc — Canadian Mortgage & Tax Calculators

Canadian Capital Gains Tax Calculator

capital_gains_tax

Read-only

Estimate Canadian capital gains tax on selling real estate, stocks, crypto, a business or a rental. Applies the flat 50% inclusion rate, principal-residence exemption, lifetime capital gains exemption for QSBC shares, capital-loss offsets and rental CCA recapture, then taxes the gain on top of other income at federal + provincial brackets.

Input Schema

Name	Required	Description	Default
`isQSBC`	No	Business only: qualified small business corporation shares (LCGE)
`taxYear`	No	Tax year of the disposition
`province`	No	Province/territory of residence	Ontario
`assetType`	No	What was sold; decides which exemptions apply	real-estate
`landValue`	No	Rental only: land portion of the sale price (splits land vs building gain)
`salePrice`	Yes	Gross sale proceeds in CAD
`yearsOwned`	No	Years owned (for principal-residence proration)
`buyingCosts`	No	Land transfer tax, legal and other buying costs
`annualIncome`	No	Other annual income in CAD; the gain is taxed on top of it
`sellingCosts`	No	Commission, legal and other selling costs
`taxpayerType`	No	Who sold the asset	individual
`capitalLosses`	No	Capital losses (prior or current) to offset the gain
`lcgeRemaining`	No	Remaining lifetime capital gains exemption room in CAD
`purchasePrice`	Yes	Original purchase price in CAD
`yearsDesignated`	No	Years designated as your principal residence
`ccaClaimedToDate`	No	Rental only: total CCA claimed to date
`capitalImprovements`	No	Capital improvements added to the adjusted cost base
`isPrincipalResidence`	No	Real estate only: claim the principal residence exemption
`originalBuildingCost`	No	Rental only: original building cost for CCA recapture

Schema Changelog

Changes observed during successful MCP inspections.

Changed9 schema fields changedNov 2, 2026

removedInput schema / $schema

Removed value: -"https://json-schema.org/draft/2020-12/schema"

addedInput schema / examples

Added value: +[
+  {
+    "annualIncome": 85000,
+    "purchasePrice": 600000,
+    "salePrice": 900000,
+    "sellingCosts": 40000
+  }
+]

changedInput schema / properties / annualIncome / description

Previous value: -"Your other annual income in CAD — the gain stacks on top of this"New value: +"Other annual income in CAD; the gain is taxed on top of it"

addedInput schema / properties / assetType / description

Added value: +"What was sold; decides which exemptions apply"

changedInput schema / properties / buyingCosts / description

Previous value: -"Land transfer tax, legal fees, and other costs of acquiring"New value: +"Land transfer tax, legal and other buying costs"

changedInput schema / properties / capitalLosses / description

Previous value: -"Prior/current capital losses available to offset the gain"New value: +"Capital losses (prior or current) to offset the gain"

changedInput schema / properties / sellingCosts / description

Previous value: -"Realtor commission, legal fees, and other costs of selling"New value: +"Commission, legal and other selling costs"

addedInput schema / properties / taxpayerType / description
```
Added value: +"Who sold the asset"
```

changedInput schema / properties / yearsOwned / description

Previous value: -"Years the property was owned (principal-residence proration)"New value: +"Years owned (for principal-residence proration)"

First observedOct 15, 2026

TDQS

A3.6/5.0

Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint/openWorldHint=false/destructiveHint=false, so the safety profile is covered. The description adds real behavioral substance: the 50% inclusion rate, principal-residence and LCGE treatment, loss offsets, CCA recapture, and stacking on top of other income. It omits any caveat that results are an estimate rather than filing-grade tax advice.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Two sentences, front-loaded with the purpose, then a dense but purposeful list of the tax mechanics applied. Every clause maps to a real capability; the run-on second sentence is long but not padded.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness3/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 19-parameter calculator with no output schema, the description explains the method well but says nothing about the shape of the result (federal vs provincial breakdown, total tax, effective rate, exemption used). An agent cannot tell what it will get back or how to interpret it.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so every one of the 19 parameters is already documented with types, defaults, enums and meanings. The description adds only topical framing (which asset types and exemptions exist) and no parameter-level detail, so baseline 3 applies.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb ('Estimate') and resource ('Canadian capital gains tax') and enumerates the covered asset classes, which separates it from income_tax and land_transfer_tax. It does not explicitly name which sibling to use for overlapping scenarios (e.g. BC home flipping), so it falls short of full sibling differentiation.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Usage is only implied by the asset categories and exemption list; there is no explicit 'use this when... / use X instead' guidance. An agent facing a BC-flipping or general-income question gets no routing signal to bc_home_flipping_tax or income_tax.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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