How I Estimated My Capital Gains Tax Before Selling a Rental Property

My situation

I had a rental property that I'd owned for several years and was selling it. I knew I'd have a capital gain (sale price minus adjusted cost base and expenses), and that only 50% of the gain would be taxable. I didn't know how much tax I'd actually owe in my province.

Using the calculator

I used TrackMoola's Capital Gains Tax Calculator and entered my province (Ontario), my expected annual income for the year (including other income), the sale proceeds, my adjusted cost base (what I paid plus improvements), and the selling expenses (legal, commission).

What the numbers showed

The tool showed my total capital gain, the taxable portion (50%), and the estimated tax based on my marginal rate. It also showed my net after-tax profit—what I'd keep in my pocket. I was able to compare: if I had held this in a TFSA I would have saved the full tax amount (the calculator showed that too). For a non-registered sale, the estimate helped me set aside money for the CRA and plan for the next year.

My takeaway

I used the How-To Guide to confirm what counts as ACB and expenses. The calculator didn't give tax advice—it gave me an estimate so I could plan. Always file with a tax professional for actual reporting.

Try it yourself

Use the Capital Gains Tax Calculator with your province, income, proceeds, ACB, and expenses. This tool is for educational purposes only; we are not liable for any tax decisions.

Related: Dividend Tax Calculator, Account Type Comparison, Dividend Tax Calculator Real Story.