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Capital gains tax calculator 2026-27
Selling an investment property, shares or another asset? Estimate your capital gain, the 50% discount and the tax you'd pay on top of your other income, using the 2026-27 rates.
| Owned for | Taxable gain | Tax | You keep |
|---|---|---|---|
| 12 months or less | $240,000 | $104,650 | $135,350 |
| More than 12 months | $120,000 | $48,250 | $191,750 |
| Difference | – | $56,400 | – |
In short: Sell an investment property bought for $550,000 for $850,000, with $25,000 of buying costs, $15,000 of improvements and $20,000 of selling costs, and the capital gain is $240,000. After the 50% discount, $120,000 is added to your income. On a $110,000 salary that's about $48,250 of tax in 2026-27. Sell within 12 months and it's about $104,650.
How it works
How the gain is worked out
Sale price less selling costs, minus your cost base: what you paid plus stamp duty, legal fees and capital improvements. If you've claimed capital works deductions (division 43), they reduce the cost base, so the gain is bigger than you might expect.
What changes from 1 July 2027
For individuals, partnerships and trusts, the 50% discount is replaced by indexation (only the gain above inflation is taxed) plus a 30% minimum tax on that gain. For assets you already own, the gain up to 1 July 2027 keeps the 50% discount. Your main residence stays exempt.
FAQ
Common questions
How is capital gains tax calculated in Australia?
There's no separate CGT rate. Your net capital gain is added to your taxable income and taxed at your marginal rate, plus the Medicare levy. If you've owned the asset for more than 12 months, individuals and trusts halve the gain first.
Do I pay CGT on my home?
Usually not. Your main residence is exempt, including for up to six years after you move out and rent it, if you don't treat another property as your main residence. You can owe some CGT if it was rented out at other times or used to earn income.
When do I pay capital gains tax?
In the income year you sign the sale contract, not when it settles. The tax is paid when you lodge that year's tax return, so a contract signed in June can mean a bill up to a year earlier than a contract signed in July.
Is the CGT discount changing?
Yes. From 1 July 2027, individuals, partnerships and trusts will index the cost base for inflation instead of halving the gain, and pay at least 30% tax on that real gain. For assets bought before then, the part of the gain made before 1 July 2027 keeps the 50% discount.
How can I reduce capital gains tax?
Keep every receipt that adds to your cost base, hold for more than 12 months, use capital losses, and think about selling in a year when your other income is lower. Contributing to super or owning through the right structure can help too. Get advice before you sign, not after.
Tax & Accounting
Read before you decide
General information only. These calculators give estimates based on the figures you enter and published rates, and don't consider your objectives, financial situation or needs. They're not a quote, credit assessment or tax advice. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd, Australian Credit Licence 390261.
