Capital Gains Exemption - $1,250,000 per individual

Prime Minister Carney cancels proposed capital gains tax increase

March 21, 2025

Ottawa, Ontario

Today, Prime Minister Carney announced that the Government of Canada will cancel the proposed hike in the capital gains inclusion rate. Cancelling the increase of the capital gains inclusion rate is a recognition of the vital role that builders and small businesses play in shaping Canada’s future. It will strengthen Canada’s ability to catalyze the enormous private investment needed to create jobs and opportunities and to build a stronger future.

In addition, the government will maintain the increase in the Lifetime Capital Gains Exemption limit to $1,250,000 on the sale of small business shares and farming and fishing property. The government will introduce legislation affecting the increase in the Lifetime Capital Gains Exemption limit in due course.

The new government is focused on catalyzing investment, incentivizing builders for taking risks, and rewarding them when they succeed. It is time to build.