Australia · Capital gains tax on property
Australia Capital Gains Tax on Property Calculator 2026-27
Australia has no separate capital gains tax rate: in 2026-27 the net capital gain on a property is added to your income and taxed at your marginal rate, 15% to 45% plus the 2% Medicare levy. A property owned at least 12 months has the gain halved by the 50% CGT discount, and a home you lived in is exempt.
Estimate the capital gains tax when you sell property in Australia: an investment property, holiday house, inherited property or a former home. The 50 per cent discount, the main residence exemption with the six-year rule, and the 2026-27 resident tax rates and Medicare levy are built in.
About 19.8% of your $300,000 gain. You keep roughly $240,650.
How we got this
| Sale price | $900,000 |
| Less cost base (purchase, costs, improvements) | −$600,000 |
| Capital gain | $300,000 |
| Less main residence exemption | −$0 |
| Assessable gain | $300,000 |
| Less 50% CGT discount | −$150,000 |
| Net capital gain added to income | $150,000 |
| Band | Amount | Rate | Tax |
|---|---|---|---|
| 30% band | $45,000 | 30% | $13,500 |
| 37% band | $55,000 | 37% | $20,350 |
| 45% band | $50,000 | 45% | $22,500 |
| Medicare levy | $150,000 | 2% | $3,000 |
| Estimated CGT | $59,350 |
The gain is reported in the tax return for the year the sale contract was signed, not the settlement date. There is no separate CGT payment deadline: the tax is part of that year's income tax assessment.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with the ATO or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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How is capital gains tax on property calculated in Australia?
The capital gain is the sale price less the cost base: the purchase price, the costs of buying and selling such as stamp duty, conveyancing and agent's commission, and capital improvements. Any part of the gain covered by the main residence exemption is removed. If you owned the property for at least 12 months, the remaining gain is halved. That net capital gain is added to your other income for the year and taxed at the resident rates below, plus the 2% Medicare levy.
How does the main residence exemption work?
A home you lived in for the whole time you owned it is exempt. Where it was your main residence for part of the period, or part of it was used to earn income, the assessable share is worked out by days: the gain multiplied by the days it was not your main residence, divided by the total days owned, using contract dates rather than settlement. A former home that you rent out after moving out can be treated as your main residence for up to six years under the six-year rule, and indefinitely if it is left empty, as long as no other property is treated as your home for the same period.
What are the 2026-27 resident tax rates?
| Taxable income | Rate on each dollar in the band |
|---|---|
| $0 to $18,200 | 0% |
| $18,201 to $45,000 | 15% |
| $45,001 to $135,000 | 30% |
| $135,001 to $190,000 | 37% |
| $190,001 and over | 45% |
The rates exclude the Medicare levy of 2%, which the calculator adds as a separate line. Low-income reductions to the levy are not modelled.
What is changing from 1 July 2027?
This is law, not a proposal. The measure was announced in the 2026-27 Federal Budget on 12 May 2026 and enacted in June 2026. From 1 July 2027 the 50% discount for individuals, trusts and partnerships is replaced by cost base indexation and a 30% minimum tax rate on capital gains. The Australian Taxation Office states that the reforms apply only to gains that accrue after 1 July 2027, so a sale in 2026-27 is unaffected and this calculator continues to apply the 50% discount. The indexation method will be implemented here before the change takes effect.
What are the Australian property CGT figures for 2026-27?
- An Australian resident who owned a property for at least 12 months reduces the capital gain by 50% before it is taxed.Source: ATO, CGT discount.
- The 2026-27 resident income tax rates are nil to $18,200, then 15%, 30% above $45,000, 37% above $135,000 and 45% above $190,000.Source: ATO, Tax rates for Australian residents.
- The Medicare levy is 2% of taxable income and is not included in the rate table.Source: ATO, What is the Medicare levy.
- A former home that is rented out can be treated as your main residence for up to 6 years after you move out.Source: ATO, Treating former home as main residence.
- The main residence exemption covers a home and up to 2 hectares of land.Source: ATO, Your main residence.
- From 1 July 2027 the 50% discount is replaced by cost base indexation and a 30% minimum tax rate, which became law in June 2026 and applies to gains accruing after that date.Source: Budget 2026-27, Tax reform.
Australian property CGT: common questions
How much is capital gains tax on property in Australia?
There is no separate CGT rate. The net capital gain is added to your taxable income for the year and taxed at your marginal rate, from 15% to 45%, plus the 2% Medicare levy. If you owned the property for at least 12 months, only half the gain is added. On a $200,000 gain held over a year, a person earning $90,000 would add $100,000 to income and pay about $32,000 of tax on it.
What is the 50 per cent CGT discount?
An Australian resident who owned an asset for at least 12 months before the sale contract date reduces the capital gain by 50 per cent before it is added to income. Capital losses are deducted first. From 1 July 2027 the discount is replaced by cost base indexation and a 30 per cent minimum tax rate for individuals, trusts and partnerships. That change is law, enacted in June 2026, and applies only to gains accruing after 1 July 2027, so a 2026-27 sale keeps the 50 per cent discount.
Do I pay capital gains tax when I sell my home in Australia?
Usually not. A dwelling that was your main residence for the whole period you owned it, on up to two hectares of land, is exempt. If it was your home for only part of the time, the assessable share is the gain multiplied by the days it was not your main residence divided by the days you owned it.
What is the six-year rule?
If you move out of your home and rent it out, you can choose to keep treating it as your main residence for up to six years, so it stays exempt, provided you do not treat another property as your main residence at the same time. If you leave it empty rather than renting it, the period is unlimited. Each new absence after moving back in starts a fresh six years.
When is Australian CGT paid?
The gain is reported in the income tax return for the financial year in which the sale contract was signed, even if settlement fell in the following year, and the tax is paid as part of that year’s assessment.
Guides
Related
Sources
- CGT discount (50 per cent for individuals, 12-month rule)
- Tax rates, Australian resident (2026-27 table)
- What is the Medicare levy?
- Treating former home as main residence (six-year rule)
- Using your home for rental or business (partial exemption by days)
- Budget 2026-27, Tax reform (CGT discount changes from 1 July 2027)