Canadian Stock Option Tax Calculator
Calculate employment benefit and capital gains tax on your stock options
Employment Benefit at Time of Exercise
If the employer is a CCPC, the employment benefit will be taxed at the time of sale instead of the time of exerciseTotal Exercise Value:
Less: Total Strike Price:
Employment Benefit:
50% Deduction:
Net Employment Benefit:
Tax Rate:
Tax on Employment Benefit:
Capital Gain Tax At Time of Sale
Proceeds:
Cost Basis:
Capital Gain:
Taxable Capital Gain:
Tax Rate:
Tax at Sale:
Capital losses can only be used to offset capital gainsImportant Information
Terms Explanation
- Grant Date & Price: When stock options are issued to you and their market value at that time.
- Strike/Exercise Price: The predetermined price at which you can purchase the company's shares.
- Exercise Date: When you actually purchase the shares by exercising your options.
Tax Considerations
- If your shares qualify as "qualified small business corporation shares," you may be eligible for the lifetime capital gains exemption, potentially eliminating tax on capital gains.
- In case of capital losses, you may be eligible to claim an Allowable Business Investment Loss (ABIL), which provides more favorable tax treatment than regular capital losses.
Disclaimer: The calculations provided are estimates based on current tax regulations and should be used for planning purposes only. Every individual's tax situation is unique. We strongly recommend consulting with a qualified tax professional to understand the specific implications for your circumstances.