Capital gains tax 2026 (Quebec resident)
Enter the capital gain (proceeds minus ACB and selling costs), your other taxable income, and any lifetime capital gains exemption (LCGE) applied to this gain. The inclusion rate stays at 50% in 2026; the proposed increase to two-thirds was cancelled on March 21, 2025.
2026 indicative cap: $1,275,000 of eligible capital gains (small business shares or farm/fishing property).
Quebec resident all year. No loss carryforwards, principal residence, or qualifying securities donations. Same federal and Quebec engine as the RRSP calculator.
- Taxable capital gain (50%)
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- Additional tax on the gain
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- Federal share (after abatement)
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- Quebec share
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- Effective rate on gross gain
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- Marginal rate on the gain (with inclusion)
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Sources. Income Tax Act, s. 38 (new tab) · CRA — calculating capital gains (new tab) · PMO — inclusion rate increase cancelled (March 21, 2025) (new tab) · CRA — 2026 indexation (LCGE $1,275,000) (new tab) · Revenu Québec — 2026 rates (new tab) · Last updated: 27 October 2026
Frequently asked questions
What inclusion rate applies in 2026?
The law in force sets 50% (Income Tax Act s. 38). The federal government cancelled the proposed increase to two-thirds announced in 2024, so it does not apply to 2026 gains.
What is the $1,275,000 LCGE?
The lifetime capital gains exemption shelters up to $1,275,000 of eligible capital gains in 2026 (indexation resumed). Only the portion of the gain above the LCGE is included at 50% in income.
Does Quebec tax gains differently?
The federally taxable capital gain is added to Quebec taxable income and taxed at 2026 provincial brackets. This model does not add a separate Quebec surtax on gains.
Is a principal residence included?
No. The principal residence exemption is not modeled. Enter only taxable gains (shares, rental condo, cottage, etc.).
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