Australian CGT Calculator

Capital Gains Tax on Real Estate — 2024–25 / 2025–26

Property blueprint illustration

Estimate Your Capital Gains Tax

Step through the key variables — cost base, holding period, main residence exemption, and marginal tax rates — to understand your CGT liability.

Disclaimer: This calculator is for general educational purposes only and does not constitute tax advice. CGT calculations can be complex — always consult a registered tax agent or accountant for your specific situation. Based on ATO rules as at 2025–26.

Property Details

Enter the key dates and sale prices for your property

$
$
Holding Period
3,652
Days Held
10.0
Years Held
50% ✓
CGT Discount

CGT Estimate

Updates as you enter data

Estimated CGT Payable
$83,238
incl. Medicare Levy ($3,825)
Capital Gain
Sale proceeds$1,200,000
Cost base($817,500)
Gross capital gain$382,500
Assessable capital gain$382,500
Less: 50% CGT discount($191,250)
Taxable capital gain$191,250
Tax Calculation
Other taxable income$120,000
+ Taxable capital gain$191,250
= Total taxable income$311,250
Tax on total income$106,201
Less: tax on other income($26,788)
CGT component$79,413
Medicare Levy$3,825
Total Tax Payable on Gain$83,238
Effective CGT rate on gross gain21.8%
Marginal tax bracket45%
Net Outcome
Net proceeds after CGT$1,116,763
Net gain after CGT$299,263

Division 43 (capital works) deductions of $35,000 have been subtracted from the cost base as required by s110-45 ITAA 1997.

Division 40 (plant & equipment) deductions of $5,000 do NOT reduce the property's cost base. Div 40 assets (carpets, hot water systems, appliances, etc.) are treated as separate CGT assets. When you sell, a balancing adjustment applies to each Div 40 asset: if the sale price allocated to that asset exceeds its adjustable value, the difference is assessable income (not a capital gain). Consult your tax agent for the full Div 40 balancing adjustment calculation.

Note on Div 43 and the CGT discount: You claimed $35,000 in capital works deductions at your marginal tax rate each year. These reduce your cost base, increasing your capital gain — but the 50% CGT discount then halves that extra gain. The net effect is that you effectively pay tax on only 50% of the Div 43 deductions you claimed, at your marginal rate. This is generally still beneficial, especially if your marginal rate at sale is lower than when you claimed the deductions.

Sale Price Breakdown

How your $1,200,000 sale proceeds are allocated

Cost Base
$817,500
Discounted (50%)
$191,250
Tax Payable
$83,238
Net Gain (after tax)
$108,013

Key CGT Facts

  • → CGT event = contract date, not settlement date
  • → 50% discount: held >12 months, Australian resident
  • → Main residence: full exemption if never used for income
  • → 6-year rule: rent out former home for up to 6 years
  • → Capital losses offset gains before applying the 50% discount
  • → Pre-CGT assets (before 20 Sep 1985): generally exempt
  • → Div 43 building deductions reduce cost base (s110-45 ITAA 1997)
  • → Div 40 plant & equipment: separate CGT assets, no cost base impact
ATO: Capital Gains Tax →ATO: Cost base adjustments for capital works →ATO: CGT when selling rental property →