Capital Gains Tax Calculator

Capital Gains Tax Guide for US & Canadian Investors

Capital gains tax applies when you sell an asset — stocks, crypto, real estate, or other investments — for more than you paid. Understanding how capital gains are taxed can help you make smarter timing and planning decisions. Our calculator covers both the US and Canadian tax systems, helping investors in both countries estimate their tax liability.

US Capital Gains Tax Rules (2024-2026)

Short-term gains (held less than 1 year) are taxed as ordinary income at your marginal rate — anywhere from 10% to 37%. Long-term gains (held 1+ year) receive preferential rates: 0% for lower incomes, 15% for most taxpayers, and 20% for high earners. The Net Investment Income Tax (NIIT) adds an additional 3.8% for individuals earning over $200,000 (single) or $250,000 (married filing jointly).

Canadian Capital Gains Tax Rules

Canada uses an "inclusion rate" system. For capital gains up to $250,000, only 50% of the gain is added to your taxable income. For gains above $250,000, the inclusion rate is 66.67%. The included amount is then taxed at your marginal federal + provincial rate. Principal Residence Exemption: Your primary home's capital gain is completely tax-free in Canada — a major tax advantage not available to most US homeowners (though the US offers a $250K/$500K exclusion).

Crypto & Digital Assets

Both the US and Canada treat cryptocurrency as property/capital property. Every trade, swap, or sale is a taxable event. The IRS and CRA both require reporting of all crypto transactions. In the US, crypto follows the same short-term/long-term rules as stocks. In Canada, crypto gains use the standard 50% inclusion rate.

Tax-Saving Strategies

Hold for over 1 year (US): This simple step can cut your tax rate roughly in half. Tax-loss harvesting: Sell losing investments to offset gains. In the US, you can deduct up to $3,000 of net capital losses against ordinary income annually. In Canada, capital losses can only offset capital gains. Use tax-advantaged accounts: US investors can use Roth IRAs and 401(k)s; Canadians can use TFSAs and RRSPs to shelter gains entirely. Charitable giving: Donating appreciated assets directly to charity avoids capital gains tax in both countries while providing a tax deduction.