Crypto tax in Canada

Authority: Canada Revenue Agency (CRA)Last verified

Crypto disposals give either business income (fully taxable) or a capital gain, of which half is taxable. The proposed rise to a two-thirds inclusion rate was cancelled. 2026 returns are due 30 April 2027.

On this page
  1. Taxable disposals
  2. Business income or capital gain
  3. Business income
  4. Capital gains inclusion rate
  5. Two-thirds increase: cancelled
  6. Losses
  7. Cost base
  8. Mining and staking
  9. Where to report
  10. Foreign property (T1135)
  11. Deadline
  12. Exchange reporting (CARF)
  13. Official sources
  14. Recommended tool

The rules

Taxable disposalsTrading or exchanging crypto for government-issued currency or another crypto, using it to buy goods or services, and gifting or donating it. Moving crypto between wallets you own is not a taxable disposition.
Source quote
"Trade or exchange it for government-issued currency or another type of crypto-asset" … "Some transactions do not result in a taxable disposition, such as transfer of crypto-assets between wallets that you own."
Business income or capital gainDepends on your activity. Signs of a business: frequent trading, short holding periods, market knowledge, substantial time spent, buying with borrowed money, advertising. It is decided case by case, and even an isolated transaction can be business income if it is an adventure or concern in the nature of trade.
Source quote
"Whether you are carrying on a business or not must be determined on a case-by-case basis" … "an isolated crypto-asset transaction could be determined to be on account of business income when it is considered an adventure or concern in the nature of trade"
Business incomeIf you dispose of crypto on account of business income, the full profit (or loss) goes on your return.
Source quote
"you must report the full amount of your profits (or loss) from the disposition in your tax return"
Capital gains inclusion rate50%: half of a capital gain (the taxable capital gain) is included in your income for the year.
Source quote
"you must include half of your capital gains (known as taxable capital gains) in your income for the year"
Two-thirds increase: cancelledThe 2024 proposal to raise the inclusion rate to two-thirds (on individuals' gains above $250,000 a year) was first deferred to 1 January 2026 and then cancelled on 21 March 2025. The rate stays at one-half.
Source quote
Finance Canada (31 Jan 2025): "deferring" … "to January 1, 2026" … "the date on which the capital gains inclusion rate would increase from one-half to two-thirds" / Prime Minister (21 Mar 2025): "the Government of Canada will cancel the proposed hike in the capital gains inclusion rate"
LossesHalf of a capital loss (the allowable capital loss) can be deducted, but only against taxable capital gains, not employment or other income. Unused net capital losses can be carried back three years or forward indefinitely.
Source quote
"You are allowed to deduct half of your capital losses (known as allowable capital losses), but only against your taxable capital gain." … "you can carry back three years or carry forward indefinitely any net capital losses"
Cost baseAdjusted cost base is usually the weighted average cost of the crypto. Each type of crypto is a separate asset. Values are in Canadian dollars; the CRA generally accepts fair market value, using a reasonable method applied consistently.
Source quote
"adjusted cost base (usually the weighted average cost of a crypto-asset)" / "If you hold more than one type of crypto-asset, each type is considered to be a separate asset"
Mining and stakingMining is in most cases a business, and the value of crypto received is business income when earned. Staking rewards from a centralized exchange are generally income when credited to your wallet on the platform.
Source quote
"In most cases, mining activities will be considered as carrying on a business" … "Rewards received from staking crypto-assets on a centralized crypto-asset exchange platform will generally be considered as income under the Income Tax Act at the time the rewards are credited"
Where to reportCapital gains and losses: T1 Schedule 3, section 'Bonds, debentures, promissory notes, crypto-assets, and other similar properties'; taxable capital gains go on line 12700. Business income: see Guide T4002.
Source quote
"you can use section “Bonds, debentures, promissory notes, crypto-assets, and other similar properties” on T1 Schedule 3"
Foreign property (T1135)Canadian residents must file Form T1135 if the total cost of their specified foreign property is more than $100,000 at any time in the year; it is due with your return. Specified foreign property includes funds or intangible property situated, deposited or held outside Canada. The CRA's public crypto pages do not say when crypto counts as held outside Canada, so get advice if you hold more than $100,000 (cost) of crypto on foreign platforms.
Source quote
"own specified foreign property costing more than $100,000" … "funds or intangible property (patents, copyrights, etc.) situated, deposited or held outside Canada" … "Form T1135 is due on the same date as the income tax return"
DeadlineTax year 2026: file and pay by 30 April 2027. If you or your spouse or common-law partner carried on a business, the filing deadline is 15 June 2027, but any balance is still due 30 April 2027.
Source quote
Income Tax Act s. 150(1)(d): "the following April 30" … "the following June 15" … "an individual who carried on a business in the year" / CRA: "Pay your balance owing on or before April 30 to avoid interest and penalties"
Exchange reporting (CARF)Proposed, not yet applying: Budget 2025 confirmed the government intends to proceed with the OECD Crypto-Asset Reporting Framework, with a deferred application date of 1 January 2027.
Source quote
"Crypto-Asset Reporting Framework and the Common Reporting Standard (subject to a deferred application date of January 1, 2027)"

Official sources

  1. CRA: Information for crypto-asset users and tax professionalscanada.ca
  2. CRA: Reporting income from crypto-asset transactionscanada.ca
  3. CRA: Reporting income from crypto-asset mining and stakingcanada.ca
  4. CRA: Determining the value of crypto-assetscanada.ca
  5. CRA: Reporting your capital gains as a crypto-asset usercanada.ca
  6. CRA: Line 12700, taxable capital gainscanada.ca
  7. Finance Canada: Deferral of capital gains inclusion rate change (31 Jan 2025)canada.ca
  8. Prime Minister of Canada: Capital gains tax increase cancelled (21 Mar 2025)pm.gc.ca
  9. CRA: Foreign Income Verification Statement (T1135)canada.ca
  10. CRA: Due dates and payment datescanada.ca
  11. Income Tax Act, section 150 (Justice Laws)laws-lois.justice.gc.ca
  12. Budget 2025: Tax measures, supplementary informationbudget.canada.ca
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Not tax advice. General information summarised from official sources; it may be incomplete or out of date. Always check the linked official source or a qualified tax adviser.