In Budget 2024, the federal government announced changes to capital gains taxation to make Canada’s tax system fairer. Starting June 25, 2024, the capital gains inclusion rate will be increased from one-half to two-thirds for capital gains of over $250,000 per year for Canadians, and on all capital gains for corporations and most types of trusts. These changes will make Canada’s tax system fairer by making taxation more income-neutral—these changes narrow the tax advantage between capital gains and other forms of income, particularly paycheques. To that end, the government is clarifying that forthcoming legislation and Budget 2024 changes to capital gains do not include:Changes to the principal residence exemption. The government is maintaining the principal residence exemption, to ensure Canadians do not pay capital gains taxes when selling their home.

Source: CBC News June 11, 2024 11:00 UTC