The exemption applies per household for one property per year, so it covers the vast majority of ordinary sales: a family selling the house they have lived in, a downsizer moving to something smaller, or a senior selling before a move into care.
Where the tax can apply is a second property: a rental, a cottage or a home you own but did not designate as your principal residence. Those sales are taxed on the gain at the 50 percent inclusion rate, which is why a seller with more than one property should talk to an accountant before listing, not after.
Joel Dyck can flag when a sale looks like it might touch capital gains so you get proper tax advice early. Get your hand-reviewed valuation from Joel Dyck.