Free Canadian Tax-Loss Harvesting Estimator
Calculate your instant tax refund by harvesting capital losses, offset realized capital gains, and explore CRA-compliant Canadian ETF swap pairings.
Your Immediate Tax Refund & Carryover
Estimate only, based on 2026 federal and provincial tax brackets. Not tax advice.
CRA-Compliant Canadian ETF Swap Matrix
Crystallize tax losses without sitting in cash or violating the 30-day superficial loss rule.
CRA Defense Rationale: Tracks a different underlying index weighting (VEQT has higher Canadian allocation ~30% vs XEQT ~25%). The CRA has not ruled on specific ETF pairs; funds tracking different indexes are generally treated as different property, but confirm with your accountant.
CRA Defense Rationale: Different ETF fund manager and separate trust indenture. Note: both funds track the same S&P 500 index. They are separate funds from different issuers, but because the index is the same the CRA could take a different view, so this pair carries more risk than pairs that track different indexes.
CRA Defense Rationale: VCN tracks the FTSE Canada All Cap Index (~180 holdings) while XIC tracks the S&P/TSX Capped Composite Index (~225 holdings). Different indexes are generally treated as different property under ITA Section 54, but the CRA has not ruled on these funds.
CRA Defense Rationale: XUU tracks S&P Total Market Index while VUN tracks CRSP US Total Market. Different index methodology is generally treated as different property under ITA Section 54, but confirm with your accountant.
CRA Defense Rationale: MSCI EAFE vs FTSE Developed ex North America indices have distinct country weights (e.g. South Korea classification differences), generally treated as different property, though the CRA has not ruled on these funds.
How the tax-loss harvesting estimator works
Selling an investment at a loss in a non-registered account creates a capital loss that offsets capital gains in the same year. Only half of a gain is taxable, so a loss saves half of the loss times your marginal rate. This estimator computes the real difference in federal and provincial tax with and without the offset, using the CRA's 2026 brackets, so the saving follows your income instead of using a single rate.
What this calculator assumes
- Taxable income is your income before this year's realized gains. The 50% capital gains inclusion rate applies.
- Rates are the CRA's 2026 federal and provincial brackets, with the Ontario surtax and the Quebec abatement. Credits, the alternative minimum tax and income-tested benefits are not included.
- Losses larger than your gains become a net capital loss that you can carry back three years (Form T1A) or forward indefinitely; the estimator shows the amount but not its value.
- The ten-year figure assumes the saving is reinvested at 7.5% a year, which is an assumption, not a forecast.
Frequently asked questions
How much tax do I save by harvesting losses?
A capital loss offsets capital gains dollar for dollar, and half of the offset gain would have been taxable. The saving is therefore about half the offset times your marginal rate: for example, a $10,000 loss against a $10,000 gain at a 43% marginal rate saves roughly $2,200.
What is the superficial loss rule?
If you or an affiliated person buy identical property within 30 days before or after you sell at a loss, and still hold it at the end of that period, the loss is denied. Read our superficial loss guide before you trade.
Can I carry back a capital loss?
Yes. A net capital loss can be applied to taxable capital gains in any of the three previous years (using Form T1A) or carried forward indefinitely.
Do the ETF swap pairs guarantee the loss?
No. The CRA has not ruled on specific pairs. Funds that track different indexes are generally treated as different property, but you should confirm with your accountant, and pairs tracking the same index carry more risk.
Educational estimates, not tax, legal or investment advice. Talk to a licensed Canadian CPA or CFP before acting.