Effective Date: June 25, 2024. Capital gains realized on or after June 25, 2024 are subject to the new inclusion rates. Gains realized before this date continue to use the old 50% inclusion rate for that tax year.
Old vs. New Inclusion Rate Calculator
2024 Capital Gains Inclusion Rate Summary
| Owner Type | Old Rate (Before June 25, 2024) | New Rate (After June 25, 2024) |
|---|---|---|
| Individual (gains ≤ $250,000/yr) | 50% inclusion | 50% inclusion (unchanged) |
| Individual (gains > $250,000/yr) | 50% on entire gain | 50% on first $250K + 66.67% on portion above $250K |
| Canadian-Controlled Private Corporation (CCPC) | 50% inclusion on all gains | 66.67% on all gains — no threshold |
| Trust | 50% inclusion on all gains | 66.67% on all gains — no threshold |
Lifetime Capital Gains Exemption (LCGE) — Increased to $1.25M
The 2024 Federal Budget also increased the Lifetime Capital Gains Exemption (LCGE) to help offset some of the inclusion rate impact for small business owners. The exemption applies to capital gains from:
- Qualified Small Business Corporation (QSBC) Shares
- Qualified Farm Property
- Qualified Fishing Property
New LCGE Amount: $1,250,000 CAD (increased from $1,016,602 in 2023), effective June 25, 2024. The first $1.25M in qualifying capital gains can be completely sheltered from income tax using this exemption.
Principal Residence Exemption Unchanged: The sale of your principal residence remains fully exempt from capital gains tax regardless of these changes. The new inclusion rates apply only to non-principal-residence assets such as investment properties, stocks, crypto, and business assets.