Canada has no separate crypto tax rate: you pay your normal income tax rate on half of your crypto capital gain. The Canada Revenue Agency says you must include half of your capital gains in income, so a $5,000 gain adds $2,500 to your taxable income, taxed at your federal and provincial marginal rates. If the CRA treats your crypto activity as a business, 100% of the profit is income instead. A typical Canadian pays roughly 10% to 19% of the gain in tax in the examples below, depending on income.
- Capital gains: 50% of the gain is taxable
- Business income: 100% of the profit is taxable
- Capital losses: half is an allowable loss, usable only against taxable capital gains
| Taxable Income | Federal Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
Source: CRA, 2026 tax rates and income brackets. Provincial or territorial tax applies in addition to the federal rates.
How Much Is Crypto Taxed In Canada On A $5,000 Gain?
Take a simple case. You bought Bitcoin for $10,000 and sold it for $15,000. Your capital gain is $5,000, and $2,500 of it is taxable. That $2,500 is stacked on top of your other income and taxed at whatever your marginal rate is. The table adds Ontario's 2026 rates (5.05%, 9.15% and 11.16% in the relevant brackets) to show a realistic combined result.
| Other Taxable Income | Federal Rate | Ontario Rate | Tax On The $2,500 Taxable Part | Share Of Your $5,000 Gain |
|---|---|---|---|---|
| $40,000 | 14% | 5.05% | $476 | 9.5% |
| $70,000 | 20.5% | 9.15% | $741 | 14.8% |
| $140,000 | 26% | 11.16% | $929 | 18.6% |
My arithmetic on the CRA's published 2026 rates. It ignores Ontario's surtax and health premium, credits and clawbacks, so your real bill can differ.
Notice what the table shows. A $5,000 gain is not taxed at 50%. It is taxed as $2,500 of income, and you keep most of it.
What Happens On A Bigger Gain That Crosses Tax Brackets?
Large gains push the taxable half into higher brackets, so the average rate climbs. Here is a $100,000 gain for an Ontario resident with $100,000 of other taxable income. The taxable half, $50,000, takes your income from $100,000 to $150,000.
| Slice Of The $50,000 Taxable Gain | Federal Rate | Ontario Rate | Tax |
|---|---|---|---|
| $100,000 to $107,785 ($7,785) | 20.5% | 9.15% | $2,308 |
| $107,785 to $117,045 ($9,260) | 20.5% | 11.16% | $2,932 |
| $117,045 to $150,000 ($32,955) | 26% | 11.16% | $12,246 |
| Total | $17,486 (17.5% of the gain) |
My arithmetic on the CRA's published 2026 federal and Ontario rates, ignoring surtax, the health premium and credits.
How Do Capital Losses Work On Crypto?
The CRA lets you deduct half of a capital loss, called an allowable capital loss, and only against taxable capital gains. You cannot use it against employment income. A $4,000 loss gives you a $2,000 allowable loss. If you have no gains this year, you can carry the loss back three years or forward indefinitely. That makes selling a loser at a loss in the same year as a winner a normal planning step, but it also means you must report every sale to claim it.
Is Crypto Taxed As A Capital Gain Or As Business Income?
This is the question that changes your bill most. The CRA decides case by case, looking at how often you trade, how long you hold, your knowledge of markets, the time you spend, how you finance your trades and whether you advertise. It calls the test an adventure in the nature of trade. A buy-and-hold investor who sells a few times a year is usually reporting capital gains. Someone placing dozens of trades a week looks more like a business, and then every dollar of profit is income, with no 50% discount. Mining is usually treated as business income, and staking rewards on a centralized exchange are income when they are credited to your account on the platform.
I read the CRA's own examples rather than a blog's summary, and you should too. For the full rules on mining and staking, see my crypto staking and taxes guide and my crypto mining guide.
Which Crypto Transactions Trigger Tax In Canada?
- Selling crypto for Canadian dollars
- Trading one crypto for another
- Spending crypto on goods or services, which the CRA treats as barter
- Giving crypto as a gift or donation
Moving coins between your own wallets is not a taxable event. Buying and holding is not either. That is why record-keeping matters: a swap from one coin to another is a sale at that day's value.
What Records Does The CRA Expect You To Keep?
For every transaction: the number of units and the type of crypto, the date and time, the Canadian dollar value, who the other side was or the wallet address, and your opening and closing balances with cost. Keep them for six years from the end of the last tax year they relate to. The CRA does not endorse any software, but it recommends exporting your exchange history regularly, because platforms close. Canada has seen plenty of them. My guide to reporting your crypto taxes shows the steps, and the crypto taxation guide goes deeper.
Do I Have To Report Crypto If I Owe No Tax?
Yes. The CRA says you must file a return to report a capital sale even if the result is no tax. Gains go on Schedule 3 and the taxable amount flows to line 12700 of your return. If the CRA treats your activity as a business, you report income and expenses on form T2125 instead.
Did Canada Raise The Capital Gains Inclusion Rate?
No. A proposed increase in the inclusion rate was cancelled. On March 21, 2025, the Prime Minister announced the cancellation, so the inclusion rate stays at 50%. The CRA's current return guidance still describes half of a capital gain as taxable. The lifetime capital gains exemption increase to $1,250,000 was kept, but it applies to qualified small business and farm and fishing property, not to crypto.
What About GST And HST On Crypto?
Buying and selling Bitcoin, Ether and similar coins that act as payment instruments is an exempt financial service for GST/HST purposes. Other crypto, including NFTs, is likely taxable intangible property. The small supplier threshold is $30,000, so occasional sellers rarely have to register. See the CRA's GST/HST crypto page if you sell regularly.
Planning your sales? Cost basis is easier when you use one platform with clean exports. Coinbase, Kraken and Wealthsimple Crypto are CSA-registered platforms that let you download your history. My Koinly review and CoinLedger review cover the tax software side.
When Is The Deadline To Report Crypto Gains?
For the 2025 tax year, the CRA's filing deadline was April 30, 2026, and self-employed people had until June 15, 2026 to file, although any tax owing was still due April 30. If you report business income from trading or mining, the June date applies to your filing but not to your payment. Check the CRA's current dates for the return you are filing, since they shift with the calendar. If you missed reporting a past sale, speak to an accountant about correcting it. My step-by-step reporting guide shows where each number goes.
What Changed For Crypto Tax In Canada In October 2026?
- : Robinhood completed its WonderFi acquisition, so Bitbuy and Coinsquare customers are moving to a new app. Export your old history before it goes read-only.
- : the CRA's crypto transactions guidance page carries this date and still shows 50% of capital gains as taxable.
- : the 2026 tax year began with a 14% lowest federal rate on the first $58,523 of taxable income, per the CRA's current-year rates page.
- : the proposed capital gains inclusion rate increase was cancelled.
Frequently Asked Questions
How Much Is Crypto Tax In Canada?
There is no separate rate. You include 50% of a capital gain in income and pay your normal federal and provincial rates on it. If the CRA treats you as a business, 100% of profit is income.
What Is The Crypto Capital Gains Tax Rate In Canada?
There is none, only the inclusion rate of 50%. The federal rate on taxable income runs from 14% to 33% for 2026, plus your provincial rate.
Is Crypto Tax Free In Canada?
No. Selling, trading, spending or gifting crypto is a disposition. You must report it even when the result is no tax.
How Are Crypto Losses Treated In Canada?
Half of a capital loss is an allowable capital loss. You can use it only against taxable capital gains, carry it back three years or forward indefinitely.
Do I Pay Tax When I Move Crypto Between My Own Wallets?
No. A transfer between wallets you own is not a disposition. Keep a record of both addresses.
Is Staking Income Taxed Differently?
Staking rewards on a centralized exchange are generally income when credited to your account on the platform. Selling the reward later can add a capital gain or loss.
Did The Capital Gains Inclusion Rate Go Up?
No. The proposed increase was cancelled on March 21, 2025, so the inclusion rate remains 50%.
How Long Should I Keep Crypto Records?
The CRA says six years from the end of the last tax year the records relate to.