Capital Gains Tax Calculator

Calculate CGT on investment property sales instantly — includes 50% discount, main residence exemption, and cost base breakdown

Property Sale Details

Excludes repairs and maintenance - only major improvements

From previous capital losses you can offset

Plus 2% Medicare levy will apply

How to Use This CGT Calculator

  1. 1.Enter purchase details: Original purchase price, date, and purchase costs (stamp duty, legal fees)
  2. 2.Enter sale details: Expected or actual sale price, date, and selling costs (agent fees, legal fees)
  3. 3.Add capital improvements: Enter the total spent on renovations, extensions, and major improvements (not repairs)
  4. 4.Include capital losses: If you have unused capital losses from previous years, enter them here
  5. 5.Main residence exemption: Check if this was your main residence (full or partial period)
  6. 6.Select your tax rate: Choose your marginal tax bracket based on your total annual income
  7. 7.Calculate & export: Get your CGT estimate and export as CSV for your accountant

💡 Pro tip: Use ReceiptClaimer to track all capital improvements on your investment property. When you're ready to sell, you'll have a complete record of expenses to maximize your cost base and minimize CGT.

Understanding Capital Gains Tax

Capital Gains Tax (CGT) is the tax you pay on the profit when you sell an asset like an investment property, shares, or business. It's not a separate tax — the capital gain is added to your taxable income and taxed at your marginal rate.

Key concept: You pay tax on the gain (profit), not the total sale price. The gain is calculated as the sale price minus the cost base (what you paid plus costs).

The 50% CGT Discount Rule

Hold for 12+ months and save 50%! If you own an asset for at least 12 months before selling, you can reduce your capital gain by 50% before calculating tax.

Example:

  • • Capital gain: $100,000
  • • Held for 2 years (qualifies for discount)
  • • Discount: $50,000 (50% of gain)
  • • Taxable gain: $50,000
  • • Tax at 37% rate: $18,500 (instead of $37,000)
  • • Savings: $18,500!

Important: The discount only applies to assets held for investment. Your main residence is already exempt, so the discount doesn't apply there.

Main Residence Exemption

Your main residence (home) is completely exempt from CGT if you lived in it for the entire ownership period. This is one of the most valuable tax concessions in Australia.

Partial Exemption (Investment Property Conversion)

If you lived in a property as your main residence for part of the time and rented it out for the rest, you get a partial exemption based on the proportion of time it was your home.

Example: Partial Exemption

  • • Owned property for 10 years (120 months)
  • • Lived in it for 5 years (60 months)
  • • Rented it out for 5 years (60 months)
  • • Capital gain: $200,000
  • • Exemption: $100,000 (50% as main residence)
  • • Taxable (with 50% discount): $50,000

The 6-Year Rule

You can treat a property as your main residence for up to 6 years while renting it out, as long as you don't claim another property as your main residence during that time. This is useful if you move for work but plan to return.

What's Included in Your Cost Base?

Your cost base is everything you paid for the asset and to improve it. A higher cost base means a lower capital gain and less tax.

✓ Include in Cost Base

  • • Purchase price
  • • Stamp duty
  • • Legal fees (purchase & sale)
  • • Agent fees (sale)
  • • Capital improvements (renovations, extensions)
  • • Building reports and inspections
  • • Advertising for sale

✗ Don't Include

  • • Repairs and maintenance
  • • Interest on loans
  • • Council rates
  • • Property management fees
  • • Insurance
  • • Repainting (maintenance)

💡 Maximizing Your Cost Base

Track every capital improvement receipt! Renovations, extensions, structural improvements all increase your cost base and reduce CGT. Use ReceiptClaimer to organize receipts for all property expenses so you don't miss deductions when you sell.

Capital Improvements vs Repairs

Understanding the difference between repairs and capital improvements is crucial for maximizing your cost base:

Capital Improvements (Add to Cost Base)

  • • Adding a new room or extension
  • • New kitchen (complete replacement)
  • • New bathroom (complete replacement)
  • • Installing air conditioning
  • • Adding a deck or patio
  • • Structural renovations
  • • Converting garage to living space

Repairs (Tax Deductible, Not Cost Base)

  • • Fixing broken items
  • • Repainting existing surfaces
  • • Replacing broken appliances
  • • Fixing leaking taps
  • • Replacing damaged carpet (same quality)
  • • Repairing broken fences

Rule of thumb: If it's making something better or adding something new, it's a capital improvement. If it's fixing something that's broken or worn out, it's a repair.

When Should I Calculate CGT?

Use this calculator at three key stages:

1.

Before Deciding to Sell

Estimate your CGT liability to understand the true after-tax profit. If you're close to 12 months ownership, consider waiting to qualify for the 50% discount.

2.

When Receiving Offers

Calculate CGT on different sale prices to understand your actual take-home amount after tax. This helps you make informed decisions on accepting offers.

3.

Tax Planning

Plan the timing of your sale to minimize tax impact. Consider splitting sales across financial years or offsetting gains with available capital losses.

Important Disclaimer

This calculator provides estimates based on standard CGT rules for 2025-26. Your actual CGT may differ due to:

  • Complex scenarios (inherited property, pre-1985 assets, business assets)
  • Small business CGT concessions (if applicable)
  • Foreign resident withholding tax
  • Specific ATO rulings on your circumstances

Always consult a qualified tax advisor or accountant before making property sale decisions. This calculator is for planning purposes only.