Budget 2024 proposes raising the capital gains inclusion rate
The federal budget proposed lifting the taxable share of a capital gain from one half to two thirds above $250,000 for individuals, effective 25 June 2024. It was deferred, then cancelled, and never took effect.
DividendsCanada editorial · Published August 21, 2026
Budget 2024 proposed increasing the capital gains inclusion rate — the proportion of a realised gain that is taxable — from one half to two thirds.
The higher rate was to apply to gains above $250,000 in a year for individuals, and to all gains realised by corporations and most trusts. The stated effective date was 25 June 2024.
What happened
The proposal was not enacted on that timetable.
In January 2025 the Department of Finance announced that implementation would be deferred to 1 January 2026. In March 2025 the increase was cancelled.
The inclusion rate has remained at one half throughout, for individuals, corporations and trusts alike.
Effect in the interim
The announced June 2024 effective date prompted some taxpayers to realise gains ahead of it, in the expectation that the higher rate would apply afterwards. Those dispositions were taxed at the one-half rate that was in force, and remained so after the cancellation.
The Canada Revenue Agency issued guidance during the period on how it would administer returns filed while the measure’s status was unresolved.
The increase to the Lifetime Capital Gains Exemption announced in the same budget, taking the limit to $1.25 million on qualifying small business shares and farming and fishing property, was retained.
Event dated June 25, 2024. Primary document: Department of Finance Canada — deferral announcement.
General information, not advice. Tax treatment depends on your circumstances and can change. Verify figures against the CRA and issuer documents before acting.