Capital Gains Tax Calculator Australia 2026

CGT on property is calculated as: (1) Work out your cost base — purchase price plus stamp duty, legal fees, and capital improvements. (2) Calculate your capital gain — net sale proceeds (sale price minus agent fees and legal costs) minus cost base. (3) If you held the property for more than 12 months, apply the CGT discount (50% for individuals). (4) Add the discounted gain to your other taxable income. (5) Pay tax at your marginal rate. Our calculator handles all these steps.

If you hold an investment property for more than 12 months before selling, you're only required to include 50% of the capital gain in your assessable income (for individuals). The remaining 50% is exempt. For example, a $200,000 gain becomes a $100,000 taxable gain. Superannuation funds receive a 33.33% discount; companies receive no discount. The discount applies to the gain after offsetting any capital losses. Note: from 1 July 2027 the 50% discount for individuals, trusts and partnerships is replaced by cost-base indexation plus a 30% minimum tax rate. It still applies to sales before that date, and remains available to new builds by election.

The CGT reforms passed Parliament on 25 June 2026 but commence on 1 July 2027, so this calculator uses the current 50% discount that still applies to sales before that date. From 1 July 2027 the discount is replaced by cost-base indexation (adjusting your purchase price for inflation) and a 30% minimum tax rate on the gain, with low-income earners and pensioners exempt. If you bought before 1 July 2027 and sell afterwards, a blended method applies: the growth up to that date keeps the 50% discount and only later growth uses the new method. See our guide to the negative gearing and CGT changes for worked detail.

Your cost base includes: the purchase price, stamp duty paid at purchase, conveyancing and legal fees at purchase, title search fees, capital improvements you made to the property (renovations, extensions, new structures), and certain holding costs if not otherwise deductible. Note: ongoing deductible expenses like interest and rates are NOT included in the cost base. Agent commissions and legal fees at sale reduce your capital proceeds (net sale price).

Yes. Capital losses from the same year or carried forward from previous years can offset your capital gains before the CGT discount is applied. For example, if you have a $300,000 gain and $50,000 in capital losses, only $250,000 is subject to the discount. Capital losses can only offset capital gains — they cannot reduce ordinary income. Unused losses carry forward indefinitely.

CGT is not withheld at settlement. You pay it as part of your annual income tax assessment. The capital gain is included in your tax return for the financial year in which the contract of sale was signed (not settlement date). For properties settled after 30 June, check whether the contract date falls in the current or next financial year. You may need to make a PAYG instalment if the tax amount is large.

Your main residence is generally fully exempt from CGT. If the property was your main residence for only part of the ownership period (e.g. you moved out and rented it), a partial exemption applies. The taxable portion is calculated as: (days used as investment / total days owned) × capital gain. The 6-year rule also allows you to treat a property as your main residence for up to 6 years after moving out, as long as you don't designate another property as your main residence.

No. If your net proceeds are less than your cost base, you've made a capital loss, not a capital gain, so no CGT applies. You can use the capital loss to offset other capital gains in the same year, or carry it forward to offset future capital gains. Capital losses cannot be used to reduce ordinary income.

Negative gearing deductions taken during ownership may reduce your cost base in certain circumstances — specifically, deductible holding costs (interest, rates, insurance etc.) that were claimed can reduce your cost base if they fall into cost base element 3. However, for most investors the practical impact is limited since those deductions were already taken as income deductions during the rental period. Your accountant can calculate the precise cost base adjustments.