
Capital gains tax is the tax you pay on profit from selling property or investments. In simpler terms, this tax directly affects how much money you'll keep after selling your home.
In Canada, only a portion of your profit (currently 50%) gets added to your taxable income. This means if you sell an investment property and make $100,000 profit, only $50,000 gets taxed. The actual tax you pay depends on your income bracket. Higher earners pay a higher percentage on those profits.
The Principal Residence Exemption lets you sell your main home completely tax-free, which means capital gains tax becomes especially important for people with a second home or an income-earning property.
If you're getting ready to sell a home that may be eligible for
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