Budget 2024

Improving Tax Fairness for Every Generation

Tax fairness is important for every generation, and it is particularly significant for younger Canadians.

To make the tax system more fair for 99.87 per cent of Canadians, the inclusion rate for capital gains—the portion on which tax is paid—for the wealthiest with more than $250,000 in capital gains in a year will increase from one-half to two-thirds. Only 0.13 per cent of Canadians with an average income of $1.42 million are expected to pay more personal income tax on their capital gains in any given year.

Principal residences will continue to be exempt from capital gains.