What is the capital gains tax rate?

Capital gains tax rates vary by country and holding period. In the US, long-term rates are 0%, 15%, or 20% depending on income. The UK charges 10% or 20% on most assets (18% or 24% on property). Australia adds gains to income at your marginal rate with a 50% discount for assets held over 12 months. Canada includes 50% of gains in taxable income.

How is capital gain calculated?

A capital gain is the sale price minus the original purchase price and any allowable costs such as transaction fees, legal costs, and capital improvements. If the result is negative, you have a capital loss, which may be used to offset other gains.

Do I pay capital gains tax on cryptocurrency?

Yes. The US, UK, Australia, and Canada all treat cryptocurrency as a capital asset. Every disposal — whether selling for cash, exchanging for another crypto, or using it to purchase goods — is a taxable event subject to capital gains tax rules.

Can I use capital losses to reduce my tax bill?

Yes, in all four countries capital losses can offset capital gains. In the US, up to $3,000 of excess losses can offset ordinary income annually with unused losses carried forward. In the UK and Australia, losses carry forward indefinitely. In Canada, losses carry back 3 years or forward indefinitely.

Is my main home subject to capital gains tax?

In most cases, no. The US, UK, Australia, and Canada all provide main residence exemptions. The US excludes up to $250,000 ($500,000 married) of gain on a primary residence. The UK provides Principal Private Residence relief. Australia has a main residence exemption. Canada offers the Principal Residence Exemption.

Tax Calculator

Capital Gains Tax Calculator

Estimate your capital gains tax liability for the US, UK, Australia, and Canada. Covers stocks, property, crypto, and other assets.

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Annual Taxable Income (AUD)

Used to determine your marginal tax rate. Enter your income before adding the capital gain.

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Annual Income (CAD)

Used to determine your federal marginal tax rate.

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Breakdown

This is an estimate for informational purposes only. Actual tax depends on your full tax return, deductions, and jurisdictional rules. Consult a tax adviser for your situation.

How Capital Gains Tax Works

United States

Short-term gains (under 1 year) are taxed as ordinary income. Long-term gains qualify for preferential rates of 0%, 15%, or 20% based on taxable income. A 3.8% Net Investment Income Tax may also apply above certain thresholds.

United Kingdom

A £3,000 Annual Exempt Amount (2024-25) reduces your taxable gain. Basic rate taxpayers pay 10% on most assets and 18% on residential property. Higher rate taxpayers pay 20% (non-property) or 24% (property).

Australia

Australia has no separate CGT rate. Gains are added to your assessable income and taxed at your marginal rate. Assets held for more than 12 months qualify for a 50% CGT discount, effectively halving the taxable gain.

Canada

Canada includes 50% of capital gains in taxable income for gains up to $250,000 per year. Gains above $250,000 are included at 2/3. The included amount is taxed at your marginal federal rate plus applicable provincial rates.

Frequently Asked Questions

Select your country above to see relevant FAQs.

Short-term gains (under 1 year) are taxed as ordinary income at rates up to 37%. Long-term gains (1 year or more) are taxed at 0%, 15%, or 20% depending on your taxable income. Most investors fall into the 15% bracket. A 3.8% Net Investment Income Tax surtax may apply if your modified AGI exceeds $200,000 (single) or $250,000 (married).

Hold assets longer than 1 year to qualify for lower long-term rates. Use tax-loss harvesting to offset gains with losses. Maximise contributions to Roth IRA and 401(k) accounts, which grow completely tax-free. Consider donating appreciated assets to charity — you receive a deduction for the full fair market value without recognising the gain.

Yes. The IRS treats cryptocurrency as property, not currency. Every sale or exchange is a taxable event, and both short-term and long-term rates apply depending on your holding period. Crypto-to-crypto swaps are also taxable events. You must track the cost basis and date of acquisition for every unit disposed of.

The NIIT is a 3.8% surtax on net investment income — including capital gains, dividends, and interest — for individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). It applies on top of regular capital gains tax rates and is not subject to the 0%/15%/20% tiered structure.

Yes. Capital losses offset capital gains dollar for dollar. If your losses exceed your gains, up to $3,000 of the excess can be deducted against ordinary income each year. Any remaining unused losses carry forward indefinitely to future tax years. This strategy is known as tax-loss harvesting.

From April 2024: basic rate taxpayers pay 10% on non-property assets (shares, crypto) and 18% on residential property gains. Higher and additional rate taxpayers pay 20% on non-property assets and 24% on residential property. The Annual Exempt Amount is £3,000 for 2024-25. Business Asset Disposal Relief reduces the rate to 10% on qualifying business disposals up to a £1 million lifetime limit.

No. Principal Private Residence (PPR) relief exempts your main home from CGT, provided it has been your only or main residence throughout the ownership period. Partial relief applies if you rented it out or used part of it for business during ownership. The garden and grounds up to 0.5 of a hectare are included in the exemption automatically.

Yes. HMRC treats cryptocurrency as a capital asset, not currency. Any disposal — selling for cash, exchanging for another crypto, or gifting — triggers a taxable CGT event. The same rate structure applies as for other non-property assets (10% or 20%). HMRC pooling rules (same-day rule and 30-day bed-and-breakfasting rule) apply to prevent artificial loss creation.

Use your £3,000 Annual Exempt Amount each tax year — it cannot be carried forward, so use it or lose it. Hold eligible assets in a Stocks and Shares ISA, where all growth and gains are completely CGT-free. Transfer assets to a spouse or civil partner, who can use their own Annual Exempt Amount. Timing disposals to straddle two tax years can effectively double the exemption used.

Formerly known as Entrepreneurs Relief, Business Asset Disposal Relief reduces the CGT rate to 10% on qualifying business disposals. You must be a sole trader or business partner, or hold at least 5% of shares in a company where you are also an employee or director. The lifetime limit is £1 million of qualifying gains. Any gains above the limit are taxed at the standard CGT rate.

Australia does not have a separate CGT rate. Capital gains are added to your assessable income and taxed at your marginal rate, which ranges from 0% to 45% plus the 2% Medicare Levy. However, individuals and trusts who hold an asset for more than 12 months before disposal qualify for the 50% CGT discount, which effectively halves the taxable portion of the gain.

If you hold a capital asset for more than 12 months before selling, only 50% of the net capital gain is included in your taxable income. This effectively halves the tax payable. The discount applies to individuals and beneficiaries of trusts, but not to companies. Complying superannuation funds receive a 33.33% discount instead.

Yes. The Australian Taxation Office (ATO) treats cryptocurrency as a capital asset, not as foreign currency. Every disposal — including selling for Australian dollars, trading for another cryptocurrency, or using crypto to pay for goods or services — is a CGT event. The 12-month discount applies if you held the asset for over 1 year. The personal use asset exemption very rarely applies to cryptocurrency.

Hold assets for more than 12 months to access the 50% CGT discount. Use capital losses from other assets to offset your capital gains — losses can be carried forward indefinitely but cannot be used to create a tax loss against other income. Consider timing the disposal in a year when your marginal income is lower. Small business CGT concessions may further reduce or eliminate CGT if you are selling a qualifying business asset.

Your main residence is generally exempt from CGT under the main residence exemption, provided it has been your home for the entire ownership period. Partial exemption applies if you rented it out or it was not your main residence for part of the period. The 6-year absence rule allows you to be temporarily absent (renting the property out) for up to 6 years without losing the full exemption, provided you do not treat another property as your main residence during that time.

For individuals, 50% of capital gains are included in taxable income for annual gains up to $250,000. Gains above $250,000 in a single year are included at 2/3 (66.67%) under changes introduced in the 2024 federal budget. The included amount is added to your other income and taxed at your marginal federal and provincial rates combined.

Yes. The Lifetime Capital Gains Exemption (LCGE) allows individuals to shelter gains on qualifying small business corporation shares and qualifying farm or fishing property. The 2024 exemption limit is $1,016,602 for small business corporation shares, indexed annually to inflation. This is a significant tax benefit for business owners selling a qualifying company.

Yes. The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity, not as currency. Every disposition — including selling for Canadian dollars, trading for another cryptocurrency, or gifting — triggers a taxable event. The 50% inclusion rate applies (or 2/3 for gains above $250,000). Frequent traders may find the CRA treats their activity as business income rather than capital gains, with 100% inclusion.

Hold eligible investments in a Tax-Free Savings Account (TFSA), where all growth and capital gains are completely tax-free and withdrawals are not taxed. Use capital losses to offset capital gains in the current year. Carry back capital losses up to 3 prior tax years or forward indefinitely to offset future gains. Donate publicly listed securities directly to a registered charity — you receive a donation receipt at fair market value with no capital gains triggered on the accrued gain.

Your principal residence is exempt from capital gains tax under the Principal Residence Exemption (PRE). You must designate the property as your principal residence for each year of ownership to claim the full exemption. Only one property per family unit can be designated as a principal residence in any given year, so couples with two properties must plan carefully. The exemption must be reported on your tax return even if fully exempt.