Question: how are you taxed when you sell your business?
Answer: When you make a profit on the sale of an investment in Canada, it is usually subject to “capital gains” tax. ... That means $300,000 would be taxable income. You'd likely be subject to at least a 46% tax rate if you live in Ontario, which would equal $138,000 in taxes ($600K/2 x 46% = $138,000).