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By Jason Heath, CFP on February 3, 2025
Estimated reading time: 4 minutes

By Jason Heath, CFP on February 3, 2025
Estimated reading time: 4 minutes

The federal government has made a last-minute change to its capital gains inclusion rate increase. However, other tax changes are going ahead as planned.

The 2024 federal budget included a proposal to increase the capital gains inclusion rate in Canada. The change was meant to apply to some capital gains realized by individual taxpayers, as well as all capital gains realized by corporations and trusts. The effective date was for capital gains realized on June 25, 2024, or later.

The problem is the legislation never passed. Following Prime Minister Justin Trudeau’s decision to prorogue Parliament in early January, the Canada Revenue Agency (CRA) encouraged taxpayers to proceed as if the tax change was happening, even though it seemed unlikely to become law.

Now, there’s a new update. The federal government has deferred the implementation of the change to the capital gains inclusion rate to January 1, 2026. Here’s what this means for taxpayers.

Deadlines, tax tips and more

The capital gains inclusion rate is the percentage of a capital gain that’s........

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