Selling a Home in Toronto: Capital Gains Tax Exemption

Tax on Selling Your Principal Residence in Canada

In Canada, there is no capital gains tax on the sale of your principal residence. If the home you're selling in Toronto was your primary residence for every year you owned it, you pay zero tax on the profit.

Key Points

• Applies to one property per family unit per year.
• Must designate the property as principal residence for each year of ownership.
• If you rented out part or used it for business, partial exemption may apply.
• Non-residents face different rules (withholding tax, reporting).

Consult a tax accountant or CRA guidelines for your specific situation, especially if the property was not solely your principal residence.