Free tool

Capital Gains Tax Calculator

Estimate the capital gains tax on selling an investment property — the cost base, the 50% discount and the tax at your own rates — and see what changes for gains from 1 July 2027.

Buying it

Purchase price

$

Purchase costs

$

Capital improvements

$

Selling it

Sale price

$

Selling costs

$

Owned for

It was my home the whole time

Owners

Who owns it

Taxable income

$

Capital gains tax

$47,400

Added to your 2026–27 tax

Capital gain

$230,000

Net sale proceeds less the cost base

Taxable gain

$115,000

After the 50% discount

Left after tax

$182,600

Of the gain — tax takes 20.6% of it

How the number is built

The capital gain
	Sale price	$900,000
−	Selling costs	$20,000
−	Cost base: purchase price, purchase costs and improvements	$650,000
=	Capital gain	$230,000
−	50% CGT discount	$115,000
=	Taxable capital gain	$115,000

The tax on the gain
	Tax on $120,000 plus $115,000 of gain	$76,320
−	Tax on $120,000 alone	$28,920
=	Capital gains tax, 2026–27 rates with the Medicare levy	$47,400

Selling after 1 July 2027?

This uses the rules for sales contracted before 1 July 2027. Under the 2026 reform, gains that build up after that date lose the 50% discount: the cost base is indexed for inflation instead, with a minimum 30% tax on the gain. A property owned before then is split at its 1 July 2027 value — the discount still applies to the gain before that date. New builds can choose either method. The ATO is publishing the tools for the split, and it is a sale worth planning with a tax adviser.

General information only, not tax advice. It applies the 50% discount available to Australian residents who have held an asset for at least 12 months, 2026–27 resident tax rates and the Medicare levy, and shares the gain equally between owners. It does not model the main residence rules in part, the six-year rule, capital losses from other assets, balancing adjustments on depreciating assets, small business concessions or non-resident rules. Our Credit Guide sets out who we are and how we are licensed.

How capital gains tax works

Capital gains tax is part of income tax. When you sell an asset for more than it cost you, the gain is added to your taxable income for the year of the sale and taxed at your own rates. There is no separate CGT rate: the same gain costs different people different amounts.

Take a property bought for $600,000, with $30,000 of stamp duty and legal costs and $20,000 spent on improvements, sold for $900,000 with $20,000 of selling costs. Its cost base is $650,000, the net proceeds are $880,000, and the capital gain is $230,000.

The 50% discount

An Australian resident who has owned an asset for at least 12 months can halve the gain before it is taxed. The $230,000 gain becomes $115,000 of taxable income, and for someone earning $120,000 the tax on it is $47,400 — about 21% of the whole gain. Sold within 12 months, the full $230,000 is taxable and the bill is $101,450.

The 12 months run to the date you sign the sale contract, not settlement, and exclude the day you bought and the day you sold. For a property close to the line, the date on the contract is worth checking twice.

What goes into the cost base

The purchase price and the costs of buying: stamp duty, legal fees and inspections.
Capital improvements — renovations, extensions, a new kitchen — but not repairs or maintenance, which are deducted as you go on a rental.
The costs of selling: the agent’s commission, advertising and legal fees.
Less capital works deductions. If you claimed depreciation on the building while it was an investment, it comes off the cost base, which increases the gain.

Who owns it, and when you sell

Because the gain is taxed at the owner’s own rates, splitting it matters. Owned equally by two people earning $120,000 each, the same sale costs $42,750 rather than $47,400: each half of the gain climbs through the brackets from a lower starting point.

Timing matters for the same reason. Sold in a year with no other income — in retirement, say — the tax on the $115,000 taxable gain would be $27,320. The 2026 reform deliberately narrows that advantage for future gains with its minimum 30% tax, which is part of why a sale is worth planning well ahead.

What changes from 1 July 2027

The reform legislated in 2026 replaces the 50% discount, for gains that build up from 1 July 2027, with two things: the cost base is indexed for inflation using the consumer price index, so only the real gain is taxed, and a minimum tax of 30% applies to that gain. People receiving means-tested payments such as the Age Pension in the year of the sale are exempt from the minimum.

It does not reach back. For an asset owned before 1 July 2027 and sold after, the gain up to that date keeps the 50% discount and the gain after it falls under the new rules, split by the asset’s value on 1 July 2027 — from a valuation or an ATO formula. Investors who buy new builds can choose either method when they sell. The main residence exemption is unchanged.

Whether you pay more or less depends on how fast the asset grows against inflation. It is exactly the kind of decision our tax accountants model with clients before a sale — and the negative gearing calculator covers the other half of the same reform.

Frequently asked questions

How much capital gains tax will I pay on an investment property?

It depends on the gain, how long you owned it and your income in the year you sell. A property bought for $600,000 — with $30,000 of purchase costs and $20,000 of improvements — and sold for $900,000 with $20,000 of selling costs makes a $230,000 gain. Owned for more than a year, half of it, $115,000, is taxable. For one owner earning $120,000 that adds $47,400 to their tax; for two owners on $120,000 each, $42,750 between them.

How is capital gains tax worked out?

Capital gains tax is not a separate tax. The capital gain — what you sold for, less selling costs, less the cost base — is added to your taxable income in the year of the sale and taxed at your ordinary rates. If you owned the asset for at least 12 months, an Australian resident can first reduce the gain by 50%. The calculator works out your tax with and without the gain and shows the difference.

Do I pay capital gains tax on my home?

Generally not. A home that was your main residence for the whole time you owned it, and was not used to produce income, is exempt. Part of the gain can be taxable if you rented it out, ran a business from it, or the land is larger than two hectares. If you move out and rent your home, it can usually stay exempt for up to six years, as long as you do not treat another property as your main residence in that time.

When does the 50% discount apply?

When an Australian resident has owned the asset for at least 12 months before the sale, not counting the day it was bought or the day it was sold. For property, the date that counts is the date the sale contract is signed, not settlement. Signing a week too early can double the taxable gain.

What can I include in the cost base?

The purchase price; the costs of buying, such as stamp duty and legal fees; capital improvements like renovations and extensions, but not repairs; and the costs of selling, such as agent's commission and advertising. If you claimed capital works deductions for the building while you owned it as an investment, they reduce the cost base.

How is capital gains tax changing in 2027?

Under the 2026 reform, now law, gains that build up from 1 July 2027 no longer get the 50% discount. Instead the cost base is indexed for inflation and a minimum 30% tax applies to the gain. Gains made before 1 July 2027 keep the discount, with the asset's value on that date splitting the two. Investors in new builds can choose either method, and the ATO is providing tools to work out the split.

Want us to run these numbers properly?

A calculator works with the handful of figures it asks for. A strategy session works with your income, your debts, your tax position and what you are actually trying to build. The first one is free.

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