Joel DyckReal Broker SK Ltd.
Saskatoon · Common questions

Do I pay capital gains tax when I sell my primary home in Saskatchewan?

In Canada, if the home you are selling is your principal residence, the sale is generally exempt from capital gains tax under the principal residence exemption. The profit from the sale of your primary home is not taxed as income, although the sale is still reported on your return for that year.

The Canada Revenue Agency administers the principal residence exemption, and since 2016 the sale must be reported on Schedule 3 of your return even when no tax is owed. There are exceptions. If you rented out part of the home, used it for business purposes, or if the property was not your principal residence for some period of ownership, a portion of the gain may be taxable. If you are selling an inherited home or a second property, different rules apply and capital gains tax may be owed on half the gain at your marginal rate.

This is general information, not tax advice. Every seller's situation is different, and you should consult a tax professional or accountant before listing to understand your specific obligations. Joel Dyck can refer you to trusted Saskatoon tax professionals as part of the valuation process.

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