Free tool · ATO-compliant

Capital Gains Tax, estimated honestly.

Sell an investment property in Australia, the ATO wants a slice. We compute it using your marginal rate, the 50% discount (if you held more than 12 months), and PPOR exemption. Not tax advice — but the right ballpark.

Sale details
Stamp duty paid at purchase + agent commission + legal + improvements. Reduces capital gain.
Tax position
Used to determine marginal rate. Capital gain stacks on top — may push you into a higher bracket.
Estimated CGT payable
$45,150
Held 36 months · 50% discount applies · marginal rate 37%
Capital gain (sale − purchase − costs)$190,000
50% discount applied−$95,000
Taxable gain$95,000
Marginal rate (on gain layer)37%
Net proceeds (sale − loan − CGT − costs)$794,850
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What we're not modelling

Cost base elements like depreciation claw-back, capital improvements before 1985, partial PPOR (rented for part of ownership), trust/SMSF structures, and CGT events other than disposal (rollovers, gifting). For complex cases, talk to an accountant — this is a ballpark only.

What is capital gains tax

Tax on the gain, not the sale price.

Capital Gains Tax (CGT) is the tax you pay on the profit when you sell an investment property in Australia. It's not a separate tax — it gets added to your taxable income for the year and taxed at your marginal rate.

Your principal place of residence (PPOR) is fully exempt from CGT under the main residence exemption — so for owner-occupied homes, the answer is usually "$0 CGT" provided you lived there for the full ownership period.

How CGT is calculated

The 4-step formula

  1. Capital gain = Sale price − Cost base. Cost base includes original purchase, stamp duty paid, legal/conveyancing, agent commission on sale, and capital improvements (not maintenance).
  2. 50% discount applies if you've held the property for more than 12 months as an individual or trust. SMSFs get a 33.3% discount instead. Companies get no discount.
  3. Taxable gain = Capital gain × (1 − discount).
  4. CGT payable = Taxable gain × your marginal tax rate. The gain stacks on top of your other taxable income — so if the gain pushes you into a higher bracket, the marginal rate jumps.
Key things to know

PPOR exemption

Your main residence is fully exempt — but only for the period you actually lived there as your principal place of residence. If you rented it out for part of the ownership period, the exemption is apportioned. The "6-year rule" lets you keep the PPOR exemption for up to 6 years of absence (e.g., while overseas or temporarily renting elsewhere) provided you don't claim another property as your main residence in the same window.

Cost base elements often missed

Depreciation claw-back

If you claimed Division 43 (capital works) depreciation while the property was rented, that amount reduces your cost base when you sell — effectively clawing back some of the tax benefit. Worth modelling with an accountant.

Common questions

Frequently asked

When is CGT paid?
CGT is paid as part of your income tax return for the financial year in which the sale CONTRACT was signed (not settlement). Plan accordingly — large gains can require a PAYG variation or significant lump-sum payment.
Can I offset capital losses?
Yes. Capital losses (from previous years or the same year on other investments) can offset capital gains. Losses can be carried forward indefinitely until used.
Does timing matter?
Yes. Holding for 12 months and a day unlocks the 50% discount — a massive saving. Selling in a year where you have lower income (career break, retirement, parental leave) reduces the marginal rate applied to the gain.
What about transfers between spouses?
Inter-spousal transfers and transfers under formal divorce settlements have CGT rollover relief — the gain isn't triggered at transfer, but the receiving spouse inherits the original cost base. Speak with a family lawyer + accountant for divorce-related transfers.
Disclaimer: CGT is complex. Our calculator handles the standard scenarios: investment property sold by an individual, with or without the 50% discount, with PPOR exemption. Trust structures, SMSFs, partial PPOR use, foreign-resident rules, and depreciation claw-back are not modelled. Talk to an accountant before relying on the estimate. This is not tax advice.