RSU Sale Tax Calculator (Canada)

The two tax moments: vesting, then selling

An RSU is a promise of shares that becomes real on the vest date. On that date, the fair market value of the shares you receive is employment income, taxed like a bonus. CRA requires your employer to withhold income tax on the benefit and remit it, and many plans arrange this by selling part of the vested shares right away, often called sell-to-cover. Nothing in this calculator redoes that step, and no refund or extra bill from vesting is included.

The vest-date value does double duty: it is also your adjusted cost base (ACB) for the shares. CRA's rule for shares acquired under an employment security agreement is that the cost of the shares equals the amount included in your income plus any price you paid. Since an RSU normally costs you nothing out of pocket, your ACB per share is the vest-date value that was taxed. When you sell, only the movement after vest is a capital gain or loss. If the price never moved and there were no fees, there would be no gain to tax.

Two practical traps follow from this. First, the T5008 slip your broker issues for the sale can show an ACB of $0 or a book value that does not match your vest-date value. Reporting with that figure would tax the full proceeds, including value you already paid income tax on. Keep your vest-date plan statement; it is the record of your ACB. Second, if you hold more of the same shares bought at different times and prices, CRA's identical property rules average their cost. In that case, enter your averaged ACB per share above rather than the price from a single vest.

Selling at a loss, and the superficial loss rule

If the shares fell after vest, the sale produces a capital loss. Only half of it, the allowable capital loss, is usable, and only against taxable capital gains. It cannot reduce tax on your salary or other income. Apply it against gains of the same year first; any leftover net capital loss can be carried back three years or forward into future years with no expiry.

The superficial loss rule is the catch that matters most for RSU holders. If you, your spouse or common-law partner, or another affiliated person acquires the same or identical shares during the window from 30 days before to 30 days after your sale, and still holds them at the end of that window, CRA treats your loss as superficial: it cannot be claimed as calculated here, and it is usually added to the cost of the replacement shares instead, which defers rather than destroys the benefit. Because RSUs keep vesting on a schedule, a routine new vest of the same stock inside that window can trigger the rule without you buying anything. This calculator flags the risk on a loss result but does not model it; check your vest calendar before selling at a loss.

The gain side has no equivalent trap, but it has a planning limit built into this estimate: one marginal rate is applied to the taxable half of the gain. On an actual return, the taxable gain stacks on top of your other income and can span more than one bracket. For a rough plan, the single rate is the standard approach. For a closer figure on a large gain, see the Canadian capital gains guide and the general Canadian capital gains tax calculator.

Sources and limits

The rules on this page come from Canada Revenue Agency guidance read while building this calculator. What this calculator leaves out, on purpose: the employment income tax at vest (already withheld in most plans), superficial loss mechanics beyond the warning, bracket-by-bracket rate stacking on large gains, and ACB averaging across lots (enter your averaged ACB per share if it applies). It is an educational estimate, not tax advice and not a substitute for a return prepared with your full facts.

• CRA: Employee security options cost of shares received equals the amount included in income plus the price paid; employers must withhold and remit tax on the benefit.
• CRA: Calculating and reporting your capital gains and losses gain equals proceeds minus ACB and selling expenses; foreign currency amounts convert at the exchange rate for each transaction date.
• CRA: Capital losses and deductions 50% inclusion rate, the superficial loss rule, and carrying net capital losses back three years or forward.
• Prime Minister's announcement, March 21, 2025 the proposed increase of the capital gains inclusion rate was cancelled before taking effect.