Government of Canada Announces Deferral in Implementation of Change to Capital Gains Inclusion Rate
Ottawa, ON – January 31, 2025 – The Government of Canada announced today that it will be deferring the implementation of a previously announced change to the capital gains inclusion rate.
In the 2022 Fall Economic Statement, the government announced that the capital gains inclusion rate would increase from 50% to 75% for dispositions of capital property after December 31, 2024. This change was intended to ensure that Canadians who benefit from capital gains pay their fair share of taxes.
However, the government has decided to defer the implementation of this change by one year to January 1, 2026. This decision was made after consultations with stakeholders and a review of the economic outlook.
The government recognizes that the current economic climate is challenging for many Canadians. The deferral of this measure will provide individuals and businesses with more time to adjust to the change.
The Department of Finance will continue to monitor the economic situation and consult with stakeholders on the timing of the implementation of the change to the capital gains inclusion rate.
Additional Information:
- The capital gains inclusion rate is the percentage of a capital gain that is included in a taxpayer’s income for tax purposes.
- The current capital gains inclusion rate of 50% means that only half of a capital gain is taxed.
- The proposed increase to the capital gains inclusion rate to 75% would have meant that three-quarters of a capital gain would have been taxed.
- The deferral of the implementation of the change to the capital gains inclusion rate does not affect other measures announced in the 2022 Fall Economic Statement.
Contact:
Media Relations Department of Finance Canada fin.media-medias.fin@canada.ca
Government of Canada announces deferral in implementation of change to capital gains inclusion rate
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