It's not 50%
You pay your marginal rate on 50% of the gain
Our rate is lower than USA currently
Discussion
This.
Details matter friends.
Yep. In the new budget, if you earn over 250k the inclusion rate has been bumped to 2/3.
I’m confused. Top rate in U.S. is 37%
If u have 100k in gains
Only 50k is taxable
If your marginal rate is 20%
You owe $10k in taxes in total on the 100k gain
On 100% of the gain.
$100 gain = $37 of tax
$100 gain * 50% = $50 taxable dollars * your income tax rate = amount of tax
Thus, if your tax rate is 45% then $22.5 of tax
Not on capital gains. I believe you’re thinking income.