Free calculator
Capital Gains Tax Calculator
Estimate the CGT on your Australian investment property sale. Includes the 50% discount, main residence exemption and partial exemption for properties rented while being your home.
Property Details
Estimated CGT Payable
$37,000
50% CGT discount applied (held >1 year)
This is an estimate only. CGT calculations can be complex, factors such as capital improvements, depreciation recapture, and individual circumstances may affect your liability. Consult a registered tax adviser for your specific situation.
How CGT works on Australian property
When you sell an investment property in Australia, the profit (capital gain) is added to your assessable income in the year of sale and taxed at your marginal rate. There are several mechanics that determine how much of the gain is taxable.
Cost base
What you paid for the property, plus most costs associated with buying it (stamp duty, conveyancing, building inspection) and any capital improvements you made during ownership.
Capital proceeds
The amount you receive on sale, less costs of sale such as real estate agent commissions and legal fees.
50% CGT discount
If you’ve owned the property for more than 12 months as an individual or via a trust, only 50% of the net capital gain is taxable. Companies do not qualify.
Main residence exemption
If the property is your principal place of residence and you never rented it out, no CGT applies. If you rented it for part of the time, a partial exemption applies based on the proportion of days it was your main residence.
50%
Of your net capital gain that's taxable when an individual or trust holds an investment property for more than 12 months. Companies don't get the discount.
ATO, individual marginal-rate basis
The biggest decisions that affect your CGT
Hold for at least 12 months and one day
The cliff is hard. Selling at 11 months and 30 days means 100% of the gain is taxable; 12 months and one day means 50%. If you’re close to the threshold, the maths almost always favours waiting.
Sell in a low-income year
CGT is taxed at your marginal rate. If you can time the sale into a year of lower other income (parental leave, sabbatical, retirement year), the CGT rate applied to the gain falls accordingly.
Joint ownership splits the gain
A 50/50 joint ownership splits the gain across two marginal-rate assessments, often pulling at least one party into a lower bracket.
Watch the “six-year rule”
If you live in a property as your main residence then move out and rent it, you can continue to treat it as your main residence for CGT purposes for up to six years, provided you don’t claim another property as your main residence in that time. Useful for accidental landlords or moves driven by work.
This is general information, not tax advice
CGT mechanics interact with depreciation, capital improvements, and your specific income picture in ways that materially change the outcome. The calculator is a starting point. Always confirm with a tax accountant before relying on a specific figure.
What this calculator doesn’t do
- It doesn’t apply specific marginal-rate brackets, you input the rate.
- It doesn’t handle complex partial-exemption scenarios with multiple rental periods.
- It doesn’t adjust the cost base for depreciation that you claimed during ownership (which reduces your cost base on sale).
- It doesn’t handle SMSF, company or trust structures (which have different CGT treatments), see our SMSF Property Guide.
- It doesn’t model temporary residents, foreign residents, or non-residents (different rules apply).
Want a real broker to run the numbers properly?
Calculator estimates are a starting point. A mortgage broker can compare 30+ lender policies and tell you what you’ll actually be approved for. Free for buyers, no commitment.
Common questions
What is the 50% CGT discount?
If you hold an investment property for more than 12 months, you are eligible for a 50% CGT discount as an individual or trust. This means only half of your capital gain is added to your taxable income. Companies are not eligible for this discount.
What is the main residence exemption?
If you sell your primary place of residence and have never rented it out, you generally pay no CGT on the sale. This is known as the main residence (or principal place of residence) exemption.
What happens if I rented out my home for part of the time?
A partial main residence exemption applies. Only the proportion of time the property was rented is taxable. For example, if you owned the property for 5 years and rented it for 2 years, 40% of the gain would be assessable, and if held more than 12 months, the 50% discount would then also apply to that assessable portion.
How does joint ownership affect CGT?
In a 50/50 joint ownership arrangement, each owner is liable for CGT on their own share of the gain. Each party applies their own marginal tax rate and any applicable discounts to their half of the taxable gain.
What costs can I include in my cost base?
Your cost base includes the original purchase price, stamp duty, legal fees, building and pest inspection costs, and capital improvements made during ownership. Agent commissions and legal fees paid on sale reduce your capital proceeds.
When is CGT actually paid?
CGT is paid as part of your income tax return for the year in which the contract of sale is signed (not settlement). If you exchange contracts in June 2026 with settlement in August 2026, the CGT obligation falls into the 2025/26 financial year. Most investors put aside funds at exchange to cover the eventual tax bill.
Keep reading
Property Depreciation Guide
Depreciation reduces tax during ownership but reduces cost base on sale.
ReadRental Yield Calculator
What the property earns while you hold it.
ReadNegative Gearing Australia
How holding-period tax mechanics interact with CGT on exit.
ReadSMSF Property Guide
CGT works very differently inside super.
ReadBest suburbs for investors
High-growth suburbs are also high-CGT suburbs at exit.
ReadConveyancing Guide
When CGT crystallises (contract date, not settlement).
Read