Selling an investment property in Queensland? You may have to pay capital gains tax (CGT) on the profit. Use our free capital gains tax calculator to get a quick estimate of the CGT on your property sale. CGT is a federal tax, so it works the same way right across Australia, including Brisbane, the Gold Coast and regional QLD.
The property
Your income
The Medicare levy is a 2% tax most Australian taxpayers pay on their income to help fund the public health system. It applies on top of your income tax, so it usually adds to the tax on your capital gain too.
Please note: this calculator gives a general estimate only and is not tax or financial advice. It uses 2025-26 resident marginal tax rates and assumes an individual Australian-resident owner with the whole gain taxable. It does not account for the main residence exemption, partial exemptions, prior capital losses, the Medicare levy surcharge or other special circumstances. Always confirm with your accountant or registered tax agent before relying on these figures. Empire Legal handles your conveyancing, not your tax return.
How is capital gains tax calculated on property in Australia?
Capital gains tax isn’t a separate tax with its own rate. Instead, your capital gain is added to your taxable income for the year and taxed at your marginal tax rate. The gain itself is the difference between what you sold the property for and its “cost base” – the purchase price plus buying costs (like stamp duty and legal fees), capital improvements, and selling costs (like agent commission and marketing).
In short: sale price, minus cost base, equals your gross capital gain. If you held the property for more than 12 months you generally get a 50% discount on that gain, and only the remaining half is taxed.
The 50% CGT discount explained
If you’re an individual and you owned the property for at least 12 months before selling, you usually qualify for the 50% CGT discount. That means only half of your capital gain is added to your income and taxed. Own it for less than 12 months and the full gain is taxable, which is why timing a sale can make a real difference to your tax bill.
Do you pay capital gains tax on your main home in QLD?
Usually, no. Your main residence (the home you live in) is generally exempt from capital gains tax under the main residence exemption. CGT mostly bites on investment properties, holiday homes, and land you’ve sold for a profit. If a property was your home for part of the time and an investment for the rest, a partial exemption may apply, so it’s worth getting advice.
How to reduce capital gains tax on an investment property
A few things can legitimately lower your CGT: holding the property for more than 12 months to access the 50% discount, keeping good records of every buying and selling cost and capital improvement (they all lift your cost base and shrink the gain), and timing the sale for a year when your other income is lower. Prior capital losses can also be offset against the gain. Always confirm your situation with a registered tax agent.
Capital gains tax FAQs
How much capital gains tax will I pay when selling an investment property?
It depends on the size of your gain and your income. The gain (after any 50% discount) is added to your taxable income and taxed at your marginal rate, which ranges from 0% up to 45% plus the Medicare levy. Our calculator gives you a ballpark figure.
Is capital gains tax different in Queensland?
No. CGT is a federal tax administered by the ATO, so it’s the same in Queensland as the rest of Australia. (Stamp duty, by contrast, is a state tax and does differ by state.)
When do I pay the capital gains tax?
CGT isn’t paid at settlement. The gain goes in your income tax return for the financial year you sold the property, and is paid as part of that year’s tax assessment.
Does the 50% discount apply to companies?
No. The 50% CGT discount is for individuals and trusts, not companies. SMSFs get a one-third discount. This calculator assumes an individual owner.
Selling an investment property in Queensland? Empire Legal handles the conveyancing with fixed fees – we don’t do your tax return, but we’ll get the legal side of your sale sorted. Get a quote, brush up on the terms in our conveyancing glossary, or if you’re buying next, try our stamp duty calculator.
