Capital Gains 2026: What Changed (And What Didn’t)

Capital gains are a key component of Canadian personal and corporate taxation. In 2026, a proposed change that many taxpayers were expecting did not go into effect. Understanding why the inclusion rate stayed at 50% and how the Lifetime Capital Gains Exemption (LCGE) adjustments will shape your tax strategy is essential for Canadians and businesses alike.

The 2026 Inclusion Rate: 50% Still in Play

For decades, Canada has taxed 50% of a taxpayer’s capital gains at their marginal income tax rate. The inclusion rate remains at 50%, meaning that individuals, trusts, and corporations will continue to include half of any realised capital gains in their taxable income.