Crypto mining income is business income in Canada: the CRA says what you receive for mining must be included in your business income at the time it is earned. Staking rewards are taxable income too: the CRA says rewards from staking crypto on a centralized exchange will generally be considered income at the time they are credited to your wallet, valued in Canadian dollars. When you later sell, swap or spend those rewards, you may have a capital gain or loss, measured from the value you already reported as income. I used to say the CRA had no guidance on staking. It now does, so the old “treat it like a hobby” view is out.
- Mining: business income when earned, reported on a business return
- When you receive rewards: include their Canadian dollar value in income when credited
- When you sell or swap them: capital gain or loss, with half of a gain included in income
- Records: keep date, time, units and CAD value for every reward, for six years
| Step | Tax Treatment | Value Used |
|---|---|---|
| Reward is credited to your wallet on a centralized exchange | Generally income (CRA) | Fair market value in CAD when credited |
| You sell, swap or spend the reward | Capital gain or loss, half of a gain is taxable | Proceeds minus the value you reported as income |
| You keep the reward | No further tax until disposition | Value at receipt becomes your cost |
Example: you receive $100 of rewards, report $100 of income, and later sell them for $130. The $30 difference is a capital gain, and half of it is taxable. This is an illustration of the mechanics, not tax advice.
How Does Staking Work?
Crypto taxation in Canada can be confusing. In this article, we will explain how crypto staking works with Canadian taxes.
The first thing you need to know is that there is a difference between how some coins have their transactions validated on the blockchain. There are proof of work coins and there are proof of stake coins.
Bitcoin is a proof of work coin. Miners solve computational puzzles and the miner that solves the puzzle first gets to add the next block of transactions to the blockchain. Proof of work coins cannot be staked.
Proof of stake coins on the other hand work differently. There are no miners. Instead, there are validators, and anyone can run a validator node if they hold enough of the coin. The larger your stake the more likely you will be rewarded. This benefits those who are most invested. Examples of proof of stake coins include Cardano, Polkadot and Avalanche.
Staking is easy to do. You do not need any special equipment. Simply find a crypto exchange that offers staking for the coin you wish to stake, and follow the steps. Reward rates vary by coin and platform, and platforms keep a cut. Coinbase, for example, advertises staking of ETH, ADA, SOL, ATOM and XTZ for up to 10% APY with a standard 35% commission, while Wealthsimple shows up to 5% a year with a 30% fee on Core and Premium accounts.
Lock-up rules differ by coin and platform, so read the unstaking terms before you commit. Some assets can be unstaked at once, others take days or weeks.
How Does The CRA Tax Staking Rewards?
The CRA’s cryptocurrency guide (page dated November 10, 2025) addresses staking directly. It explains that proof-of-stake participants lock up crypto as collateral to operate validator nodes, and says: rewards received from staking crypto-assets on a centralized crypto-asset exchange platform will generally be considered income at the time the rewards are credited to the taxpayer’s wallet. Mining, by contrast, is generally treated as a business.
That settles the question I raised in the earlier version of this page. I had said there was no official guidance and suggested that average investors might treat staking like hobby mining, paying capital gains tax only when selling the rewards with a cost basis of zero. The CRA does not support that. The same approach that Koinly and other tax tools suggested, tracking the dollar value of each reward when received and adding the total to income, matches the CRA’s wording for centralized exchanges.
You should therefore keep track of the dollar value of each crypto reward received and add the total for the year to your income. Additionally, you will have to pay capital gains tax when you sell, swap or gift your staking rewards, measured against the dollar amount when you received the reward. Staking can therefore incur two types of tax: income tax and capital gains tax.
The CRA page covers staking on a centralized exchange. It does not spell out every other setup, such as running your own validator, using a liquid staking token or a protocol that pays rewards in a different way. If you do that, get advice from an accountant.
How Is Crypto Mining Income Taxed In Canada?
Mining sits in a different box from staking. The CRA says mining is treated as business income for Canadian residents, and that the value of the crypto-assets you receive for it must be included in your business income at the time it is earned. It adds that most mining qualifies as a business because of the scale and resources involved, and points miners to guide T4002 for self-employed business income.
Two practical points from the CRA. First, miners can claim capital cost allowance on equipment, and the CRA says ASIC miners and GPU rigs can meet the conditions for class 50. Second, for GST/HST the CRA says miners are generally considered not to be engaged in commercial activity, so they do not collect GST/HST on mining rewards and cannot claim input tax credits, unless they mine for an identified client, in which case GST/HST may apply to those payments.
What the CRA page does not spell out is how to treat pooled mining income, electricity costs or a small hobby setup. If you mine, get an accountant to look at it, because the business classification drives everything else. When you later sell the coins you mined, the sale is a separate disposition, with the value you reported as income as your starting cost.
How Do I Report Staking Rewards On My Tax Return?
Reward income goes into your income for the year at its Canadian dollar value, and any gain or loss on selling them goes on Schedule 3. Tax software can do the adding up. Koinly, a crypto tax software that can help you complete your crypto taxes, will import your transactions, label them, and calculate your income and capital gains. Check how it labels each reward, and correct anything that looks wrong. I cover the steps in completing your crypto taxes in Canada and in my Koinly review.
The CRA does not endorse any software product, and it recommends keeping the number of units, the date and time, and the Canadian dollar value of each transaction for six years from the end of the last tax year.
Which Canadian Exchanges Offer Staking?
| Platform | What The Platform Says |
|---|---|
| Coinbase | Stake ETH, ADA, SOL, ATOM or XTZ for up to 10% APY in eligible jurisdictions; standard commission 35% |
| Kraken | Staking for Canadians, except Opt-in Rewards, GRT and FLR staking and Babylon Bitcoin Staking; you can stake ETH |
| Wealthsimple Crypto | Up to 5% per year; Wealthsimple fee 30% on Core and Premium, 15% on Generation, plus validator fees |
| Newton | Up to 4.5% APY shown, estimates not guaranteed |
| NDAX | Opt-in staking; 20% administration fee on staking and Auto Earn rewards |
What Changed For Staking And Taxes In October 2026?
- The federal government cancelled the proposed increase in the capital gains inclusion rate, so half of a gain is still taxable.
- The CRA updated its mining and staking guidance: staking rewards on a centralized exchange are generally income when credited.
- Newton became a CIRO investment dealer member and kept its staking product.
Frequently Asked Questions
Are Staking Rewards Taxable In Canada?
Yes. The CRA says staking rewards on a centralized exchange will generally be considered income at the time they are credited to your wallet, valued in Canadian dollars.
Do I Pay Tax Again When I Sell Staking Rewards?
You may. Selling, swapping or spending the rewards is a disposition. The difference between the proceeds and the value you reported as income is a capital gain or loss, and half of a gain is taxable.
How Is Crypto Mining Taxed In Canada?
The CRA says the value of crypto-assets you receive for mining must be included in your business income at the time it is earned. Most mining counts as a business because of the scale and resources involved. Equipment such as ASIC miners and GPU rigs can qualify for capital cost allowance in class 50.
Is Staking Treated Like Mining For Tax?
No longer in the way I once suggested. The CRA says mining is generally a business, while staking on a centralized exchange is generally income when credited. It does not support a zero cost basis.
What Records Do I Need For Staking Taxes?
The date and time of each reward, the number of units, its Canadian dollar value and the platform. The CRA wants records kept for six years from the end of the last tax year.
Can Bitcoin Be Staked?
Not natively. Bitcoin is proof of work. Some platforms offer other products on bitcoin, but those are not staking in the proof of stake sense.
Which Exchange Is Best For Staking In Canada?
Compare the fee as well as the rate. Coinbase takes a 35% commission, Wealthsimple 30% or 15%, and NDAX 20%. Check each platform's current terms before you stake.