Skip to content
Start free trial
Free Calculator · FY 2025-26 · ATO Aligned

CGT Calculator Australia

Estimate the capital gains tax on the sale of your investment property. Applies the 50% CGT discount for assets held over 12 months.

Reviewed by the Vestly team
Updated June 2026Methodology

Sale details

$
$

Original purchase

$
$
$
$

Depreciation claimed

$

Capital-works deductions (Div 43) reduce your CGT cost base under ITAA 1997 s.110-45. Sum every year you've claimed. Leave at $0 if you've never claimed any.

Your structure

Your income

$
%

Your CGT estimate

Estimated CGT payable

$46,813

50% CGT discount applied (held 4.0 years)

Sale proceeds (your share)$900,000
Less selling costs−$20,000
Less cost base (after Div 43)−$652,500
Gross capital gain$227,500
Discounted gain (50%)$113,750
Net proceeds after CGT$833,188

Why this matters: Div 43 capital works deductions you've claimed during ownership reduce your CGT cost base under ITAA 1997 s.110-45 - which means depreciation effectively defers tax rather than eliminates it. If you're unsure of your total claimed, check your past tax returns or QS schedule.

Model CGT on every property

Vestly tracks your cost base and depreciation year-round, so this estimate is ready the day you decide to sell.

Start a 7-day free trial, $0 today. Then $9.90 per active property a month, GST included. Cancel anytime.

How capital gains tax on property works

When you sell an Australian investment property for more than you paid for it, the profit is called a capital gain. That gain is added to your taxable income for the financial year in which the contract of sale is signed (not settlement date).

You don't pay a separate CGT rate. The gain is taxed at your marginal income tax rate. But if you've held the property for more than 12 months, you get a 50% discount, meaning only half the gain is taxable.

Source: ATO - Calculating your CGT →

How the cost base is calculated

Your cost base isn't just the purchase price. It includes:

  • Purchase price
  • Stamp duty
  • Legal fees (buying & selling)
  • Buyer's agent fees
  • Inspection fees
  • Capital improvements (renovations, extensions)
  • Selling costs (agent commission, marketing, legal)

The higher your cost base, the smaller your taxable capital gain, which is why keeping receipts for everything related to the property matters.

The 50% CGT discount

Australian residents who hold a property for more than 12 months(from contract date to contract date) get a 50% discount on the capital gain before it's added to their taxable income.

Worked example

If you made a $200,000 gain on a property held for 3 years, only $100,000 is added to your taxable income. If your marginal rate is 37%, your estimated CGT is $37,000, not $74,000.

This discount doesn't apply to properties held inside a company structure. It does apply (at a reduced one-third rate) inside an SMSF.

Common questions

Is there a way to reduce CGT legally?

Yes. Hold the property for over 12 months to unlock the 50% discount, maximise your cost base (keep all receipts), time the sale to a year with lower income, offset gains with capital losses from other assets, or use the 6-year absence rule if the property was once your primary residence.

Is CGT paid at settlement?

No. CGT is paid as part of your income tax return for the financial year in which the contract of sale was signed, not settlement date.

Does my primary residence attract CGT?

Generally no. The main residence exemption applies to your principal home, but it can get complex if you've rented it out, lived overseas, or owned it before/after moving out. Get advice.

How is capital gains tax calculated on an Australian property?

Work out the capital gain (sale price minus the cost base, which is the purchase price plus stamp duty, legal fees, buying and selling costs, and capital improvements). If you have held the property for more than 12 months, halve the gain using the 50% discount. Add the discounted gain to your taxable income for the year the contract is signed, and it is taxed at your marginal rate. There is no separate CGT rate.

How long do you have to hold a property to avoid CGT?

There is no holding period that removes CGT entirely on an investment property, but holding for more than 12 months unlocks the 50% discount, which halves the taxable gain. The main residence exemption (for your own home) is the only way to pay no CGT, and it can be partly lost if the home was rented out.

Is this calculator financial or tax advice?

No. This is an estimate tool. Always consult a registered tax agent before selling.

Related calculators

Model any sale across your portfolio

Know your CGT before you list, not after. Vestly models hypothetical sales on every property you own, with cost base and depreciation kept current year-round, so the number is ready the day you decide. $9.90 per active property a month, GST included.

Start free trial

Start a 7-day free trial, $0 today. Then $9.90 per active property a month, GST included. Cancel anytime.