Interactive tool

Lifetime Capital Gains Exemption calculator

Name: Barrett Tax Law
Address: 665 Millway Ave, Suite 44, Concord, ON, L4K 3T8, CA
Telephone: 1-877-882-9829
Price range: $$

Selling qualified small business corporation (QSBC) shares? Estimate how much of your gain the Lifetime Capital Gains Exemption can shelter — and the tax on anything above it — using the 2026 figures.

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Your numbers

Expected sale price (proceeds)

What you expect to receive for the QSBC shares.Adjusted cost base (ACB)

Generally what the shares cost you. Often nominal for a founder.Selling costs

Legal, accounting, and broker fees on the sale.LCGE already used (lifetime)

Capital-gains exemption you've claimed in prior years.Family members claiming the exemption

people

e.g. you + spouse, or a family trust spreading the gain. Requires proper structuring — see the caveats.Your marginal tax rate

Top combined rates range ~44–54% by province. Adjust to your situation.

Estimate

Estimated tax saved by the exemption

$318,750

on an exempt gain of $1,275,000

Capital gain on the shares: $1,850,000
LCGE available (2026 limit): $1,275,000
Exempt portion of the gain: $1,275,000
Taxable (non-exempt) gain: $575,000
Taxable capital gain (50% inclusion): $287,500
Estimated tax on the non-exempt portion: $143,750

The exemption shelters $1,275,000 of the gain; the remaining $575,000 is taxed, for an estimated $143,750.

2026 figures: the LCGE for QSBC shares is $1,275,000 (indexed from the $1.25M set for dispositions on or after June 25, 2024), and the capital-gains inclusion rate is 50% (the proposed increase to 66.67% was cancelled in March 2025 and never became law).

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Important caveats

This is an estimate, not tax or legal advice. It ignores your other income, credits, and the precise marginal-rate brackets — it applies a single rate you enter.
The shares must actually qualify as QSBC shares. That turns on asset-use tests and a 24-month holding period. Shares that look qualified are often offside without planning — see our QSBC purification guide.
Multiplying the exemption across family members (the “people” field) requires real structuring — usually a family trust set up well in advance — and engages the tax-on-split-income (TOSI) rules. It is not automatic.
The Alternative Minimum Tax (AMT) can apply. Claiming a large exemption can trigger AMT, which this tool does not model. The AMT is often recoverable over the following years, but it affects cash flow in the year of sale.

In other words: the number above is a useful starting point, but a real LCGE plan is built around the qualification tests, the structure, AMT, and timing. That is the work we do.

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