We use cookies to run this site, measure traffic, and improve your experience. You can change this any time from the "Cookie preferences" link in the footer. See our Privacy Policy.
Canadian Capital Gains Tax on Inherited Property Calculator
Canadian Capital Gains Tax on Inherited Property Calculator
See roughly what tax may be owing on property after a death in Canada.
When someone dies in Canada, the Canada Revenue Agency treats them as having sold everything they owned the moment before death, at what it was worth that day. If a property went up in value while they owned it, part of that increase is taxed on their final return. Use the estate tab to estimate that amount. Use the beneficiary tab if you already received a property and are selling it now, to estimate tax on any growth in value since it came to you.
How the property was owned changes the answer. If two people held it in joint tenancy, it passes straight to the survivor and the estate usually has nothing to report. If they held it as tenants in common, only the deceased’s share goes through the estate, and only that share is taxed. Both tabs ask about this and adjust the numbers for you.
How the property was owned
Check the title document if you are not sure. It sets out who owned the property and on what terms.
The share shown on title. Two equal owners is 50% each. Enter the whole property’s figures below and we apply this share.
In a joint tenancy, the property passes to the surviving owner by right of survivorship. The estate normally reports no capital gain on it, so there is usually nothing to calculate here. One caution: if the joint owner was added for convenience only and did not truly own a share, the Canada Revenue Agency may still treat the whole property as the deceased’s. Ask a lawyer if that describes your situation.
What the property cost
The purchase price, plus legal fees and other costs of buying. Tax rules call this the adjusted cost base, or ACB.
Work that added lasting value, such as an addition or a new roof. Repairs, painting and upkeep do not count.
The value on the day the person died, ideally from a qualified appraiser. The Canada Revenue Agency calls this fair market value.
Exemptions that may reduce or cancel the tax
Tax rate
We use this to fill in a starting tax rate. Adjust the rate alongside if it does not fit.
We fill in the highest combined federal and provincial rate for that province. Lower it if the final return sits in a smaller bracket.
Rates shown are the top combined marginal rates for the 2024 and 2025 tax years and should be confirmed against the current year.
How you own the property
If the property came to you and one or more other people, each of you is taxed only on your own share.
The share held in your name on title. Enter the whole property’s figures below and we apply your share.
What the property was worth when you got it
What the whole property was worth on the day it was put in your name. This becomes your starting value for tax, so any growth is measured from here.
Work that added lasting value since you received it. Repairs and upkeep do not count.
The sale
The full sale price of the property, before any costs come off.
Real estate commission, legal fees, staging and similar costs.
Claiming it as your main home
Tax rate
We use this to fill in a starting tax rate. Adjust the rate alongside if it does not fit.
We fill in the highest combined federal and provincial rate for your province. Lower it if your income sits in a smaller bracket.
Rates shown are the top combined marginal rates for the 2024 and 2025 tax years and should be confirmed against the current year.
Disclaimer. This calculator provides estimates only based on rules currently in effect, including the flat 50% inclusion rate on capital gains and the $1.25M Lifetime Capital Gains Exemption limit for qualified small business shares, farming, and fishing property. A 66.67% inclusion rate on annual capital gains above $250,000 was proposed under the previous federal government, but it was never enacted into law. It was deferred in January 2025 and cancelled in March 2025, so the 50% rate has applied throughout. It does not account for alternative minimum tax, capital cost allowance recapture, undepreciated capital cost, depreciable property rules, foreign property considerations, or interactions with other income. Actual tax owing depends on the full personal tax situation, and rules change. Consult a Canadian estate or tax lawyer before acting on these figures. The team at Onyx Law Group can help executors and beneficiaries work through the calculation with their specific circumstances. Some exemptions may only be available for up to three years after the date of death. We strongly recommend you consult with an accountant.
Past results are not indicative of future outcomes; every case turns on its own facts. The information on this site is for general information only and is not legal advice.
