Principal Residence Exemption

PRE

Why selling your own home is usually tax-free, and when it isn't.

The principal residence exemption generally makes the capital gain on the sale of your own home tax-free for the years it was your principal residence. It is powerful but not automatic: you must report the sale, only one property per family can be designated for a given year, and time when the home was rented out, or CCA was claimed on part of it, can reduce the exemption. Understanding it matters most when a home has also been an investment.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.