The federal government is raising the inclusion rate to two-thirds from one-half on capital gains above $250,000 realized annually by individuals and on all capital gains realized by corporations and trusts.

The proposed higher new rate kicks in June 25, 2024, the government announced in Budget 2024.­

Right now, only 50 percent of capital gains are taxable. That person who sold a house for $100,000 more than they paid for, it is taxed only on $50,000 of the profit.

The tax system also provides a lifetime capital gains exemption in the instance of an individual selling their small business or a qualifying farm or fishing property. That exemption will remain and budget 2024 proposes expanding it to $1.25 million of eligible capital gains, up from just over $1 million currently.

The tax measure is expected to net the government $19.3-billion over the next five years – $8.8-billion from individuals and $10.5-billion from companies – in a bid to offset roughly $53-billion in new spending. It’s by far the largest revenue measure in the budget and the first change to capital gains taxes in a quarter-century.

Source: https://globalnews.ca/news/10427688/capital-gains-tax-changes-budget-2024/