Winnipeg’s real estate market has seen steady appreciation over the years, making homeownership one of the best long-term investments. If you’re thinking about selling, you’re likely wondering: How much tax will I have to pay?

Let’s break it down.

Do You Pay Tax When Selling Your Home?

It depends. If your property is your principal residence—meaning you’ve lived in it for all the years you’ve owned it—you’re exempt from paying capital gains tax when selling. This is thanks to the Principal Residence Exemption (PRE).

However, if it’s a rental property, second home, or investment asset, then a capital gains tax applies.

New for 2025: If your net capital gains exceed $250,000 in a year, 66.67% of the profit is now taxable—up from the previous 50%. This means sellers of high-value properties or multiple assets may face a bigger tax bill.

Understanding Taxes When Selling a Home

1. Capital Gains Tax

If your property isn’t your primary residence, the profit you make when selling is subject to capital gains tax.

Here’s how it works:

• For a rental property or vacation home, you’ll pay tax on 66.67% of the profit (if it exceeds $250,000 in a year).

• If you flip a property (buy and sell within 12 months), CRA considers it business income, meaning you’ll be taxed at your full marginal tax rate rather than the lower capital gains rate.

• If you’ve held the property for more than 12 months, you qualify for the capital gains rate instead of full taxation.

2. GST/HST on Home Sales

In most cases, the sale of an existing home does not incur GST or HST. However, new builds, significant renovations, and house flips may require the seller to collect and remit these taxes.

If you’re unsure whether GST/HST applies, I can help connect you with professionals who can advise based on your situation.

3. Property Tax Adjustments

Winnipeg homeowners pay property tax annually, but when selling, taxes are pro-rated based on the closing date.

For example:

• If you sell your home halfway through the year, you’ll pay taxes up to the sale date, and the buyer covers the rest.

• If you’ve already paid the full year’s taxes, the buyer reimburses you their portion at closing.

Your lawyer will handle these calculations, ensuring everything is fair and balanced.

What About Non-Resident Sellers?

If you’re a non-resident of Canada selling property, CRA requires a 25% withholding tax on the gross sale price (or 66.67% if it’s a rental property). You’ll need to apply for a Clearance Certificate and file a Canadian tax return.

Selling as a non-resident is more complex, and I can refer you to the right experts to make the process smooth.

📢 FREE Home Evaluation!

Before you list, let’s talk strategy. I’ll show you how to maximize your home’s value & avoid surprises at closing. DM me today at 1-204-999-4455. 

Disclaimer: The information in this article is for general knowledge only and should not be considered tax or financial advice. Tax laws change frequently, and every situation is different. Always consult a qualified accountant or financial advisor before making real estate decisions.