How is crypto taxed in Canada?

Crypto taxes in Canada apply when you dispose of crypto, not while you simply hold it. The CRA treats profits as either capital gains or business income, and which one applies changes how much of the profit is taxed. There is no special crypto tax rate, so the amount is added to your income and taxed at your regular income tax rates.

What counts as a taxable crypto transaction in Canada?

The CRA calls a taxable event a disposition. Its guidance lists trading crypto for Canadian dollars or another currency, trading one crypto for another, using crypto to buy goods or services, and giving crypto away as a gift or donation.

Crypto-to-crypto swaps catch many people off guard. Because crypto is not government currency, the CRA treats a swap as a barter. You are considered to have disposed of the coin you gave up at its fair market value at the time of the trade. Moving crypto between wallets you own is not a disposition.

Is crypto business income or capital gains in Canada?

It depends on your activity, and the CRA looks at each case on its own facts. Signs that point toward business income include frequent trades, short holding periods, deep knowledge of the market, a lot of time spent studying it, buying with borrowed money, and advertising that you buy crypto. Even a single deal can be business income.

The difference matters. If it is business income, the full profit is taxable. If it is a capital gain, only part of it is. You can read more about what happens to losses in our guide to crypto losses and taxes.

What is the crypto tax rate in Canada?

There is no flat crypto rate. For capital gains, the inclusion rate is 50%, meaning half of the gain is added to your taxable income. The CRA gives the example of crypto bought for $3,500 and sold for $4,000. The $500 gain produces a $250 taxable capital gain.

The federal government had proposed raising the inclusion rate to two-thirds, first for June 2024 and later for January 2026. That increase was cancelled in March 2025, so the 50% rate still applies as of October 2026.

Capital losses work the same way. Half of a capital loss is an allowable loss, and it can only offset taxable capital gains, not wages. Net capital losses can be carried back three years or forward indefinitely.

What records does the CRA expect crypto users to keep?

The CRA asks you to keep accurate records of purchases and sales, including how you worked out fair market value. You need each coin's adjusted cost base, which is generally what you paid plus acquisition costs. If you missed reporting in past years, the CRA points to options such as changing a return or applying to its Voluntary Disclosures Program. For how this compares with other countries, see crypto tax around the world.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.