Canada Delays Capital Gains Inclusion Rate Change to 2026

The Canadian government has announced a delay in the implementation of a change to the capital gains inclusion rate. Originally scheduled for June 25, 2024, the change will now take effect on January 1, 2026. This announcement was made by the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs.

The capital gains inclusion rate is the portion of capital gains that is subject to taxation. The planned adjustment will increase this rate from one-half to two-thirds. This change will impact capital gains realized annually above $250,000 by individuals, as well as all capital gains realized by corporations and most types of trusts.

The deferral allows additional time for those affected by the change to prepare for the new tax implications. The government has not provided specific reasons for this deferral in the announcement.