Are capitol gains added to your annual taxable income, or are they treated as a separate gain & taxed differently?

They are treated as a separate gain and taxed differently.

So if your Employment Income is $60,000 then you will be taxed on that.

And another tax calculation for the $20,000 or whatever in capital gains. I don't know where you live, but in Canada, Capital Gains are only taxes at 50%. So 20,000 in C.G. would only be taxed on 10,000

CaptainForest has said it all!