Capital Gains Tax Calculator Australia 2026
Calculate capital gains tax on property instantly. Estimate CGT, discounts and selling outcomes with this free calculator. No signup required.
How Capital Gains Tax Works on Australian Property
When you sell an investment property for more than its total cost base, the profit becomes a capital gain. Capital gains tax is not a separate bill. Instead, the taxable gain is added to your assessable income for the financial year in which the sale contract is signed and taxed at your marginal rate.
This calculator is designed for Australian residential property investors who want a fast estimate before speaking with an accountant. It uses the 2025-26 resident tax brackets, applies the standard 50% CGT discount for eligible owners, and shows the estimated tax payable plus net profit after selling costs.
How to Use This Capital Gains Tax Calculator
- Enter your purchase price and upfront buying costs such as stamp duty and conveyancing.
- Add the sale price, selling costs, and any eligible capital improvements that increase your cost base.
- Tick the 12 month discount box if the property qualifies for the 50% CGT discount.
- Enter your other taxable income for the year so the calculator can estimate the extra tax created by the gain.
The result is an estimate only. Final CGT outcomes can change once capital losses, partial exemptions, ownership structures, or prior depreciation claims are reviewed.
How to Calculate Capital Gains Tax on Property
The capital gains tax calculation follows a simple sequence:
Step 1: Determine Your Cost Base
Add your purchase price, acquisition costs, eligible improvement costs, and selling costs that form part of the property cost base.
Step 2: Calculate Capital Proceeds
Start with the sale price, then deduct selling costs such as agent fees, legal fees, and campaign costs.
Step 3: Work Out the Capital Gain
Subtract the cost base from your net sale proceeds to find the gross gain before any discounts or losses.
Step 4: Apply Losses and the 50% Discount
Capital losses are generally applied first. If the property was held for more than 12 months and you are eligible, the remaining gain is reduced by 50%.
Step 5: Add the Taxable Gain to Other Income
The discounted gain is then added to salary, rent, business income, and other taxable income for the same financial year.
Step 6: Estimate Tax Payable
Your CGT is the increase in total income tax caused by the gain. That is what the calculator estimates above.
Understanding the Cost Base
A higher cost base means a lower taxable gain. Investors often undercount buying and selling costs, which can materially overstate CGT. Keep records of contracts, legal invoices, search fees, capital works, and sale costs so your estimate is grounded in real numbers.
If you have also claimed property deductions during ownership, use this page alongside our Tax Deduction Checklist so you can separate deductible holding costs from items that should instead be included in the cost base.
2025-26 Tax Rates for Capital Gains
Capital gains are taxed at your marginal rate. For Australian residents in 2025-26, the brackets are:
| Taxable Income | Tax Rate | Tax on This Bracket |
|---|---|---|
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 - $135,000 | 30% | $4,288 + 30c for each $1 over $45,000 |
| $135,001 - $190,000 | 37% | $31,288 + 37c for each $1 over $135,000 |
| $190,001 and above | 45% | $51,638 + 45c for each $1 over $190,000 |
Source: ATO individual tax rates
Common Ways Investors Reduce CGT
- Hold the property for more than 12 months to access the 50% discount.
- Keep complete records so every legitimate cost base item is captured.
- Offset the gain with carried-forward or current-year capital losses.
- Review whether the main residence exemption or 6 year rule may apply.
- Consider timing the sale in a lower-income year where possible.
Example: CGT on a $750,000 Property Sale
Purchase: $500,000
Purchase costs: $11,000
Capital improvements: $25,000
Total cost base: $536,000
Sale price: $750,000
Selling costs: $20,700
Capital gain: $193,300
Taxable gain after 50% discount: $96,650
Estimated extra tax with $90,000 other income: about $33,800
Record Keeping and Portfolio Planning
ATO record-keeping rules matter because missing documents can inflate your taxable gain. Track contracts, settlement statements, improvement invoices, and sale costs for at least five years after the relevant tax return is lodged.
If you want to see how selling one asset affects the rest of your numbers, compare the result here with our Portfolio Return Calculator and Negative Gearing Calculator.
Frequently Asked Questions About CGT on Property
How do I calculate capital gains tax on a property sale?
Capital gains tax on property is generally calculated as sale price minus cost base, then adjusted for any discount and taxed at your marginal rate under current 2026 rules. If you held the asset for more than 12 months, the 50% discount can materially reduce the taxable amount. Use our calculator above to estimate the exact CGT outcome for your own numbers.
How much capital gains tax will I pay on $300,000?
A $300,000 capital gain does not mean a $300,000 tax bill because your payable CGT depends on the cost base, capital losses, the 50% discount, and your other taxable income under current 2026 rules. If you qualify for the 50% discount, only $150,000 of that gain is generally added to taxable income before your marginal rate is applied. Use our calculator above to test your own sale numbers and tax position.
How do I calculate capital gains tax?
Capital gains tax is generally worked out by subtracting your cost base from the sale proceeds, then applying any capital losses and discount rules that apply under current 2026 tax settings. For Australian property investors, the biggest variables are usually ownership period, improvement costs, and other taxable income in the year of sale. Use our calculator above to estimate the taxable gain and likely CGT payable in minutes.
What costs reduce your capital gain?
Costs that usually reduce your capital gain include purchase costs, selling costs, major capital improvements and some ownership adjustments under current 2026 tax rules. A bigger cost base lowers the taxable gain, so keeping records can change the result by thousands of dollars. Use our calculator above to include those costs and estimate your CGT more accurately.
How does the 50% CGT discount work?
If an individual or trust holds a qualifying CGT asset for more than 12 months, only 50% of the net capital gain is usually taxed under current 2026 rules. Companies do not receive the discount, and self-managed super funds generally receive a one-third discount instead. Use our calculator above to compare the sale outcome with and without the discount applied.
Does the 6 year rule change CGT?
Yes. If a property was your main residence before being rented out, the 6 year rule may let you continue treating it as your main residence for up to six years while absent, potentially reducing or eliminating CGT under current 2026 rules. Eligibility depends on your facts and whether you nominate another main residence. Use our calculator above for the baseline estimate, then confirm any exemption with your tax adviser.
Related Articles
Related Property Investment Tools
Go Beyond Calculations
PropBoss helps investors track purchase costs, improvements, deductions, and portfolio performance in one place so CGT is not a last-minute spreadsheet exercise when it is time to sell.
This calculator provides estimates based on 2025-26 Australian resident tax rates. CGT can be more complex where trusts, companies, partial exemptions, inherited property, or prior capital losses are involved. Always confirm the final position with a qualified tax adviser.