Budget 2024 makes changes to capital gains tax. Who will it affect? – National [Video]

Some Canadians making money from capital gains are set to pay higher taxes starting this year, according to the federal budget tabled by Finance Minister Chrystia Freeland on Tuesday.

The changes to how capital gains are taxed have been proposed as the government eyes ways to make up for some of the big spending measures announced in Tuesday’s budget.

According to the federal budget, the inclusion rate — the portion of capital gains on which tax is paid — for individuals with more than $250,000 in capital gains in a year will increase to two-thirds from one-half.

People realizing up to $250,000 in capital gains will continue to pay tax on 50 per cent of their capital gains. For corporations and trusts, however, there is no threshold. The inclusion rate for them will increase to two-thirds for all realized capital gains.

The Department of Finance said for 99.87 per cent of Canadians, personal income taxes …