Lifetime Capital Gains Exemption Climbs to $1.275 Million

Column chart of the Canadian lifetime capital gains exemption limit rising from $800,000 in 2014 to $1,275,000 in 2026.

The exemption shelters gains on qualifying small business shares and farm or fishing property, and it operates separately from the capital gains inclusion rate, which is unchanged after Ottawa cancelled a planned increase. The large step in the series came from a 2024 budget increase, not routine indexing. For owners planning a sale, the higher exemption now has to be weighed against the alternative minimum tax, which counts the entire gain.

This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.

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Line chart tracking the CRA's prescribed interest rate declining to a steady 3% through the third quarter of 2026.

The Canada Revenue Agency's prescribed interest rate has held at 3% for five straight quarters, its longest stable stretch since 2020 and 2021.

The Prescribed Rate Has Not Moved in Five Quarters. That May Not Last Through Budget 2026

July 21, 2026

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Bar chart comparing Finance Canada and Parliamentary Budget Officer revenue estimates for the abandoned capital gains measure.

Ottawa scrapped the capital gains inclusion rate increase in March 2025, but newly published federal revenue data shows what the abandoned measure was projected to cost taxpayers.

The Capital Gains Hike That Never Happened Still Cost Someone Real Money

September 10, 2026

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