Tax by country
Canada — tax on crypto and investments
Canada Revenue Agency (CRA). Tax year 1 January – 31 December. Last verified 28-10-2026.
| Country | Currency | Tax year | Authority | Last verified | Status |
|---|---|---|---|---|---|
| CA | CAD | 1 January – 31 December | Canada Revenue Agency (CRA) | 28-10-2026 | approved by the owner (accountant), 28-10-2026 |
Related article: hq-fs.com/blog/crypto-tax-canada
Not tax advice. Rules summarised from official sources, linked where each rule is stated, as verified on the date above. Confirm with a qualified adviser before filing.
At a glance#
Capital gains#
Inclusion rate. One-half, for 2025 and 2026.
| Date | Event |
|---|---|
| 2024 (Budget 2024) | Budget 2024 proposes two-thirds inclusion on individuals' gains above $250,000 (all gains for corporations and most trusts), from 25-06-2024 |
| 31-01-2025 | Start deferred to 01-01-2026. CRA reverts to administering the enacted one-half rate |
| 21-03-2025 | Prime Minister cancels the proposed increase. The Lifetime Capital Gains Exemption increase is kept |
| 04-11-2025 | Budget 2025 confirms the government will not proceed |
The two-thirds increase was never enacted and is cancelled. The inclusion rate stays 50%.
Computation. Gain = proceeds of disposition − ACB − outlays and expenses. ACB is "usually the weighted average cost of a crypto-asset". Half of the gain is the taxable capital gain.
| Event | Disposition? |
|---|---|
| Sell for CAD or other fiat | Yes |
| Swap for another crypto-asset | Yes (barter) |
| Pay for goods or services | Yes (barter) |
| Gift or donate | Yes |
| Transfer between own wallets | No |
Capital vs business income. The CRA looks at course of conduct. Factors: frequency of transactions, period of ownership, knowledge of crypto-asset markets, time spent, financing, advertising. An isolated purchase with intent to sell at a profit can be an adventure or concern in the nature of trade (fully taxable business income).
| Taxable income (CAD) | Rate |
|---|---|
| 0 – 58,523 | 14% |
| 58,523.01 – 117,045 | 20.5% |
| 117,045.01 – 181,440 | 26% |
| 181,440.01 – 258,482 | 29% |
| Over 258,482 | 33% |
| Taxable income (CAD) | Rate |
|---|---|
| 0 – 57,375 | 14.5% (15% to 30-06-2025, 14% from 01-07-2025) |
| 57,375.01 – 114,750 | 20.5% |
| 114,750.01 – 177,882 | 26% |
| 177,882.01 – 253,414 | 29% |
| Over 253,414 | 33% |
Basic personal amount (federal):
| Year | Maximum |
|---|---|
| 2026 | $16,452 (minimum $14,829 above $258,482) |
Provincial tax is added on top and is not covered on this page.
Income#
| Activity | Treatment | Timing |
|---|---|---|
| Mining | Business income "in most cases" | When earned |
| Staking via centralized exchange | Income | When rewards are credited to the wallet on the platform |
| Staking outside an exchange (own validator, DeFi) | Not addressed by CRA | — |
| Airdrops | Not addressed by CRA | — |
| Business trading | Full profit is business income; losses are business losses | Year realised |
| Payment for goods/services in crypto | Barter: acquisition at fair market value (CRA guide) | On receipt |
Valuation. Use fair market value in CAD at the time of the transaction. Any reasonable method is accepted if applied consistently and documented.
Business inventory. Either (1) each item at the lower of cost and year-end fair market value, or (2) the whole inventory at year-end fair market value. Property held in an adventure in the nature of trade is valued at acquisition cost.
Cost basis and record keeping#
Method: average cost (ACB). ITA s. 47(1) deems each new purchase of identical property to pool with existing holdings. Each unit's cost = total ACB ÷ number of units held after the purchase. The CRA describes crypto ACB as "usually the weighted average cost". Disposals do not change the per-unit ACB of the remaining units.
This is not FIFO. FIFO and ACB give different gains whenever units were bought at different prices.
Superficial loss (ITA s. 54; CRA capital losses):
| Condition | Rule |
|---|---|
| Window | 30 calendar days before to 30 calendar days after the disposal (61 days, including the disposal day) |
| Who | The taxpayer or an affiliated person (e.g. spouse, controlled corporation) |
| What | The same or identical property (the "substituted property") |
| Holding test | Substituted property (or a right to acquire it) still owned at the end of the window |
| Effect | Loss denied now. Amount added to the ACB of the substituted property |
| Scope | Capital property. Applies to crypto held on capital account (no crypto-specific exemption found) |
Records. Keep for at least six years from the end of the last tax year they relate to:
| Record |
|---|
| Units and type of crypto-asset per transaction |
| Date and time of each transaction |
| CAD value at the time of each transaction |
| Description of the transaction and the other party (crypto address is enough) |
| Addresses of every wallet used |
| Opening and closing balance (and cost) per crypto-asset per year |
| Exchange trade and transfer ledgers; accounting, legal and software receipts; mining hardware and running costs |
Indirect taxes#
| Item | Rule |
|---|---|
| GST rate | 5% |
| HST rates (from 01-04-2025) | ON 13%, NS 14%, NB 15%, NL 15%, PE 15% |
| Sale of a virtual payment instrument (bitcoin, ether, litecoin) | Exempt financial service. No GST/HST charged, no input tax credits |
| Sale of other crypto-assets (e.g. some NFTs) | Likely taxable sale of intangible personal property |
| Mining | Generally not a commercial activity (ETA s. 188.2, in force 05-02-2022). Exception: mining for a known party |
| Registrant accepting crypto as payment | Value at fair market value at the time of the transaction |
| Small supplier threshold | $30,000 taxable supplies in a quarter and over four quarters ($50,000 public service bodies) |
| Transaction or withholding tax on crypto | None identified |
Reporting and deadlines#
| Obligation | Rule |
|---|---|
| T1 return, 2025 | File and pay by 30-04-2026 |
| T1 return, 2025, self-employed | File by 15-06-2026; pay by 30-04-2026 |
| Capital gains | Schedule 3, crypto-asset section |
| Late-filing penalty | 5% of unpaid tax + 1% per full month late, up to 12 months |
| T1135 threshold | Total cost of specified foreign property > $100,000 at any time in the year (T1135 Q&A) |
| T1135 scope | "Funds or intangible property … situated, deposited or held outside Canada". Excludes property used or held exclusively in an active business |
| Crypto on foreign exchanges | CRA document 2014-0561061E5: digital currency is funds or intangible property and is specified foreign property if situated, deposited or held outside Canada. Crypto held on a foreign exchange is therefore generally reportable. Self-custody wallets: location rule unsettled |
| T1135 late penalty | Greater of $100 and $25 per day up to 100 days ($2,500 max). Over 24 months late: further penalty up to 5% of cost |
Recent and upcoming changes#
| Date | Change | Status |
|---|---|---|
| 01-04-2025 | Nova Scotia HST 15% → 14% | In force |
| 21-03-2025 | Capital gains inclusion increase to two-thirds cancelled | Final. Rate stays one-half |
| 01-07-2025 | Lowest federal rate 15% → 14% (14.5% blended for 2025, 14% for 2026) | In force |
| 2025 → 2026 | Brackets indexed 2.0%; RRSP limit $32,490 → $33,810; TFSA stays $7,000 | In force |
| 15-08-2025 | Draft legislation for the Crypto-Asset Reporting Framework (CARF), new Part XXI of the Income Tax Act | Draft |
| 01-01-2027 | CARF application date, deferred from 01-01-2026 in Budget 2025 | Proposed |
| By 01-05-2028 | First CARF returns from crypto-asset service providers (for 2027 data) | Proposed |
| 03-06-2026 | Bill C-31 (Budget 2025 Implementation Act, No. 2) carrying CARF at House committee | Not yet law at that date |