Capital Gains Tax Estimator

How to Calculate Capital Gains Tax on Property

This capital gains tax calculator for property estimates the tax you'd pay when you sell an investment property in Australia. Enter the sale price and selling costs, what you paid plus purchase costs and capital improvements, both contract dates, and your other income for the year. The calculator works out your cost base and capital gain, applies any main residence exemption, prior capital losses and the 50% CGT discount, then shows how much extra tax the gain adds at your marginal rate — and what you'll have left from the sale.

How to Work Out Capital Gains Tax on a Property

Worked Example

An investor bought a unit on 15 March 2018 for $520,000, paying $22,000 in stamp duty and legal costs, and later spent $30,000 on a renovation. They signed a contract to sell it on 20 June 2026 for $850,000, with $18,000 of agent and legal costs. That gives a cost base of $590,000 and a capital gain of $260,000.

They're an Australian resident, the sole owner, and held the property for 3,019 days — well over 12 months — so the 50% discount removes $130,000, leaving a net capital gain of $130,000. Because the contract was signed in June 2026, the gain falls in the 2025-26 financial year. Added to their $95,000 of other income, taxable income rises to $225,000 and tax (including the Medicare levy) goes from $21,188 to $71,888, so the estimated CGT is $50,700 — an effective rate of 19.5% on the gain. Without the discount it would have been $111,800. After selling costs and CGT, they keep about $781,300 before paying out any loan.

What Changes the Result

• Timing. Signing the sale contract after the 12-month anniversary unlocks the 50% discount, and selling in a year when your other income is lower can keep more of the gain in lower tax brackets.
• Main residence. A home you lived in for the whole time you owned it is generally exempt. If it was your home for only part of the time, this calculator taxes the gain in proportion to the days it wasn't — a simplification of the ATO's rules, which also include the 6-year absence rule and a market-value reset for homes first rented out after 20 August 1996.
• Deductions already claimed. You can't count a cost twice. Capital works deductions and other amounts you've claimed as tax deductions generally reduce the cost base, which increases the gain — check your depreciation schedule and tax returns.
• Joint ownership. Each owner is taxed on their own share at their own rate.
• Record keeping. Keep contracts, settlement statements, invoices for improvements and records of deductions claimed for at least five years after the sale.

Frequently Asked Questions

How do you calculate capital gain on sale of property?

Start with the sale price, then subtract the cost base: the purchase price plus stamp duty and legal costs on purchase, capital improvements such as renovations or extensions, and the costs of selling (agent commission, marketing and legal fees). What's left is your capital gain. If the cost base is higher than the sale price, you've made a capital loss instead.

How do you work out capital gains tax on a property?

Take the capital gain, remove any main residence exemption, subtract capital losses from earlier years, then halve what's left if you're an Australian resident who held the property for more than 12 months. That net capital gain is added to your taxable income for the year, and the CGT is the extra income tax (plus Medicare levy) it creates. This calculator works through each step for you.

How much is capital gains tax on property in Australia?

There's no separate CGT rate. Your net capital gain is taxed at your marginal income tax rate, so the bill depends on your other income that year as well as the size of the gain. Because of the 50% discount, a resident who has held a property for more than a year typically pays an effective rate of roughly half their marginal rate (plus Medicare levy) on the gain, or less if part of the gain falls in lower brackets.

What can I include in the cost base of an investment property?

The purchase price, stamp duty, conveyancing and legal fees, buyer's agent fees, the cost of capital improvements, and the costs of selling all count. Holding costs like interest, rates and insurance can also count, but only if you couldn't claim them as deductions — for a rental property you usually did, so they're left out. Amounts you've already deducted, such as capital works (building) deductions, generally reduce the cost base rather than add to it.

How does the 50% CGT discount and the 12-month rule work?

If you're an Australian resident individual and you've owned the property for at least 12 months before the CGT event, only half of the gain (after losses) is taxable. The 12 months doesn't count the day you bought or the day you sold, so in practice you need to sign the sale contract after the 12-month anniversary of your purchase contract. Selling even a few days early can make a large difference, which is why the calculator shows the first date the discount applies.

Is the CGT date the contract date or the settlement date?

For a property sale, the CGT event generally happens on the date you sign the sale contract, not at settlement. That date decides which financial year the gain is taxed in and whether you've passed the 12-month mark. Ownership is generally also measured from your purchase contract date.

Do I pay capital gains tax on my home?

Usually not — your main residence is generally exempt for the period it was your home. If it was your home for only part of the time you owned it, or you rented it out, a partial exemption usually applies based on the days it was your main residence. The 6-year rule can let you keep treating a former home as your main residence while you rent it out for up to six years, if you don't treat another property as your main residence in that time; the ATO also has special rules for homes first rented out after 20 August 1996.

How is capital gains tax worked out on a jointly owned property?

Each owner reports their own share of the gain, usually in line with their legal ownership (50% each for joint tenants). Each person then applies their own capital losses, the discount and their own marginal tax rate, so two owners with different incomes can pay quite different amounts on the same sale. Enter your ownership percentage and your own income to estimate your share.

What if I'm a foreign resident or I made a capital loss?

Foreign residents generally can't use the 50% discount for gains made while non-resident, and since 2020 generally can't claim the main residence exemption either. A capital loss can't be deducted from your salary or other income; it's carried forward and used to reduce future capital gains, applied before the 50% discount. Keep records of the purchase, costs and improvements for at least five years after the sale so you can support your figures.