Capital Gains Tax Calculator Australia (2026–27)
Build the cost base, apply your ownership share and capital losses, test the exact 12-month discount date, then see the extra income tax attributable to one ordinary CGT event.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
Calculation audit
| Step | Amount |
|---|---|
| Your share of capital proceeds | $800,000 |
| Your ordinary cost base | −$565,000 |
| Gross capital gain | $235,000 |
| Current-year capital losses applied | −$20,000 |
| Earlier net capital losses applied | $0 |
| Individual CGT discount | −$107,500 |
| Net capital gain added to taxable income | $107,500 |
| Estimated tax attributable to the gain | $40,875 |
Where the net gain lands in the tax brackets
| 2026–27 resident band | Rate | Added income in band | Income tax |
|---|---|---|---|
| $45,001–$135,000 | 30% | $35,000 | $10,500 |
| $135,001–$190,000 | 37% | $55,000 | $20,350 |
| $190,001+ | 45% | $17,500 | $7,875 |
| Low Income Tax Offset reduction | — | — | $0 |
| Standard Medicare levy increment | 2% | $107,500 | $2,150 |
CGT is part of income tax, not a separate flat bill
For an Australian-resident individual, a net capital gain is added to taxable income. That means the same gain can create different tax for two people: it fills the unused parts of the 15%, 30%, 37% and 45% resident brackets after their other taxable income.
The calculator measures the difference between estimated tax before and after the net capital gain. Its result therefore attributes only the extra 2026–27 Income Tax, any Low Income Tax Offset reduction and the optional standard 2% Medicare levy to the CGT event.
A cost base is more than the purchase price
The form separates acquisition price, incidental buying costs, eligible non-deducted ownership costs, capital improvements, title or rights costs and selling costs. It applies the ownership percentage to the asset amounts before comparing your share of proceeds with your share of the cost base.
A capital loss does not always equal sale proceeds minus the ordinary cost base. The reduced cost base generally replaces the third element, so the common-event loss estimate excludes the entered non-capital ownership costs instead of turning them automatically into a capital loss.
Capital losses come before the 50% discount
Current-year and carried-forward net capital losses reduce the gross capital gain first. Only the eligible amount left after those losses receives the individual CGT discount. Applying the discount first would understate the net capital gain.
For the ordinary 12-month test, the ATO excludes both the acquisition date and the CGT-event date. An asset acquired on 2 February does not become discount-eligible until 3 February in the following year. For most property sales, the relevant event is the contract date rather than settlement.
The model is deliberately narrower than a tax return
This release covers one ordinary taxable event for an Australian-resident individual under 2026–27 rules. It does not decide main-residence or six-year exemptions, foreign-resident discount apportionment, deceased estates, rollovers, collectables, affordable-housing discounts, small-business concessions, trust distributions, company or SMSF tax, depreciation adjustments or whether an amount was previously deductible.
Legislated CGT reforms begin for gains accruing from 1 July 2027. They do not change a disposal inside 2026–27. Because future mixed-period gains require transitional calculations, this current-year tool flags out-of-year event dates instead of applying the old 50% method indefinitely.
Frequently asked questions
How is capital gains tax calculated in Australia?
For an ordinary taxable asset, start with your capital proceeds minus the relevant cost base. Apply current-year and prior net capital losses, then apply any eligible CGT discount. The resulting net capital gain is included in taxable income and taxed through the ordinary income-tax calculation.
When does the 50% CGT discount apply?
For the scenario modelled here, an Australian-resident individual generally needs a discount-eligible asset held for a clear 12 months. Both the acquisition day and CGT-event day are excluded, so the eligible date is normally one year and one day after acquisition.
Do I use the property contract date or settlement date?
For a standard property sale under contract, the CGT event is generally the contract date, not settlement. Other assets and CGT events can have different timing rules.
What costs can be included in the cost base?
The five broad elements can include acquisition money, eligible incidental buying or selling costs, certain non-deducted ownership costs, capital expenditure that increases or preserves value, and costs of preserving or defending title or rights. Whether a particular amount qualifies depends on its facts and whether it was deductible elsewhere.
Why does the calculator ask for capital losses before applying the discount?
Australian CGT ordering requires capital losses to reduce capital gains before the discount is applied. The calculator shows current-year and earlier-year losses separately so the sequence is auditable.
Does an outstanding mortgage reduce the capital gain?
No. Repaying a loan changes the cash left after sale, but it does not normally reduce the capital gain. The loan input appears only in the net-sale-cash result, not the cost base or taxable gain.
Does this calculate the July 2027 CGT reform?
No. This page calculates a CGT event inside the 2026–27 income year. The legislated future rules apply to gains accruing from 1 July 2027 and require transitional treatment that is outside this current-year result.
Rules verified 2 Aug 2026 against official Australian sources:
- ATO: calculating capital gains and losses
- ATO: the five cost-base elements and reduced cost base
- ATO: discount eligibility, dates and loss ordering
- Federal Register of Legislation: 2026–27 resident tax rates
- Australian Treasury: CGT changes applying from 1 July 2027
Scope: Australian-resident individual, one ordinary taxable CGT event and FY2026–27 resident rates. Excludes exemptions, foreign-residency apportionment, trusts, companies, super funds, small-business concessions, affordable housing, rollovers, depreciation schedules, tax offsets other than LITO, Medicare levy thresholds/surcharge and personalised tax-return interactions. Educational estimate only.