Your Property Guide

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.

Updated October 2026Free, no sign-upProperty investors

Property Details

Estimated CGT Payable

$37,000

50% CGT discount applied (held >1 year)

Cost Base$500,000
Capital Proceeds$700,000
Gross Capital Gain$200,000
Taxable Capital Gain (after 50% discount)$100,000
Estimated CGT Payable$37,000
Effective CGT Rate18.5%
Net Profit After CGT$163,000

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.

Gains after 1 July 2027

The 50% discount is being replaced. Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, passed on 25 June 2026, gains that accrue from 1 July 2027 are worked out with cost base indexation (only the gain above inflation is taxed) and, for resident individuals, a 30% minimum tax. On property you own before then, the gain up to 1 July 2027 keeps the 50% discount and the gain after it is indexed from the property’s value on that date. Investors in new builds can choose the discount or indexation when they sell. This calculator applies the rules for gains before 1 July 2027. Source: ATO, last updated 29 June 2026; our CGT changes explainer has worked examples.

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, on a gain that accrues before 1 July 2027. 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. From 1 July 2027 the 30% minimum tax limits this for gains that accrue after that date, unless you receive an exempting payment such as the Age Pension in the year of sale.

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).
  • It doesn’t yet apply cost base indexation or the 30% minimum tax that replace the 50% discount for gains accruing from 1 July 2027.

Sources and methodology

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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. For gains that accrue from 1 July 2027 the discount is replaced by cost base indexation and, for resident individuals, a 30% minimum tax. On property you already own, the gain up to 1 July 2027 keeps the discount; investors in new builds can choose to keep it (ATO, last updated 29 June 2026).

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.

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