How To Report Crypto On Your Canadian Tax Return (Schedule 3 Walkthrough)

In This Article

1. How Is Crypto Taxed In Canada?
2. What Crypto Transactions Are Taxable In Canada?
3. Is Crypto Taxed As Business Or Personal Income In Canada?
4. Should You Report Capital Gains Or Business Income?
5. What Is The Capital Gains Inclusion Rate For Crypto In 2026?
6. Taxes On Crypto Mining In Canada
7. Taxes On Staking Crypto In Canada
8. How Do You Report Crypto On Schedule 3, Step By Step?
9. How Do You Report Your Crypto Taxes In Canada?
10. Using Koinly To Report Crypto Taxes In Canada
11. How Is GST/HST Applied To Cryptocurrency In Canada?
12. Can You Invest In Crypto Tax-Free In Canada?
13. How Do You Calculate Cryptocurrency Taxes In Canada?
14. Are NFTs Taxable In Canada?
15. Accepting Crypto As Payment For Canadian Businesses
16. Are Crypto-To-Crypto Transactions Taxable In Canada?
17. What If You Do Not Report Cryptocurrency, Would The CRA Find Out?
18. Can The CRA Audit Your Crypto Transactions?

A lot of people wonder, is cryptocurrency taxed in Canada? Yes, it is. Several types of crypto transactions are taxable. In this article I explain everything you need to know about paying cryptocurrency taxes in Canada for the 2026 tax year, and the rules I describe come from the Canada Revenue Agency's own crypto guide.

In a nutshell, cryptocurrency gains are subject to capital gains tax in Canada. Only 50% of a capital gain is taxable at your marginal tax rate, meaning you pay tax on half of your profit, not your entire investment. That has been the CRA's published rate on its crypto pages, which were last dated December 2, 2025. I used to explain a higher rate here, so read the section on the inclusion rate below, because the 2024 proposal I described was cancelled.

For example: if you bought Bitcoin at $10,000 and sold it for $500,000, your profit is $490,000. At the 50% inclusion rate, $245,000 is a taxable capital gain, and that amount is added to your income for the year and taxed at your marginal rate.

You can check out my Free Canada Crypto Tax Calculator.

In this guide, I cover what you have to pay tax on, different types of taxes including capital gains and income tax, how to calculate your crypto taxes, and more. An earlier version of this article was reviewed by Canadian accountants.

Part of my guide to crypto taxes in Canada.

How Is Crypto Taxed In Canada?

The Canada Revenue Agency (CRA) publishes a crypto guide that covers tax obligations, record-keeping, valuation, income from common transactions, mining and staking, and GST/HST. It describes crypto-assets as digital representations of value, and it says profits can be business income or a capital gain, depending on what you do. I used to say the CRA treats crypto as a commodity like oil, silver or gold. I could not find that wording on the current canada.ca crypto pages, so I use the CRA's own term, crypto-asset, and focus on what it says you must report.

The practical point has not changed: crypto is not treated like Canadian dollars. When you dispose of it, you measure the result in Canadian dollars, and that result is taxed.

What Crypto Transactions Are Taxable In Canada?

Any sale or transfer of cryptocurrency to someone else is called a disposition, and you may have to pay tax on it. The CRA's list of transaction types includes selling, trading, barter transactions, gifts and donations, gambling, and rewards such as mining or staking. Dispositions include:

• Selling crypto for fiat
• Trading one crypto for another crypto
• Using crypto to pay for goods and services
• Giving crypto as a gift

Selling Crypto For Fiat

Selling crypto, whether you make a profit or a loss, counts as a transaction you report. You can purchase crypto and hold it for as many years as you like without having to report this purchase to the Canada Revenue Agency. If you sell your crypto assets, you will need to report it on your tax return. You will pay capital gains tax or business income tax on your crypto earnings. The CRA is clear that even if the sale produces a loss or no tax is owing, you must file a return to report a capital sale.

Trading Crypto For Another Crypto

Trading one crypto for another counts as a taxable transaction, so you will have to pay tax on trading crypto. For example, there's an altcoin you have your eye on, but you can't purchase it directly with fiat, so you have to buy Bitcoin in Canada first. Once you've bought Bitcoin, then you can buy the altcoin with the Bitcoin you just bought. Since you are trading crypto to crypto, this counts as a taxable event. Purchasing a new coin during its ICO with another coin also counts as a taxable event. For each trade you convert the value of what you received into Canadian dollars at the time of the trade.

Using Crypto To Pay For Goods And Services

You might have tax implications if you use cryptocurrency in exchange for goods and services. The CRA lists barter transactions, meaning receiving crypto in exchange for goods or services and disposing of it the same way, as reportable. A barter transaction is when you and the other party agree to exchange goods or services without Canadian dollars changing hands.

The person receiving the crypto will have tax obligations and will most likely need to report it as business income. The person spending the crypto might also owe tax on a capital gain. For example, you purchase 0.0017 BTC for $100. The next day, you use that Bitcoin to purchase an item. It doesn't matter what it is or what it costs. The price of Bitcoin has gone up and your 0.0017 BTC is now worth $110.

Since you disposed of your BTC to buy something, that counts as a sale. That extra $10 would be considered a capital gain. If, however, 0.0017 BTC was now worth $95 at the time you used it to purchase the item, that would count as a capital loss. You can refer to this profit and loss calculation:

Canadian investors need to therefore keep track of all transactions involving cryptocurrency. A single cryptocurrency transaction could have tax consequences. See my guide to spending Bitcoin in Canada for places to use it.

Gifting Crypto

Donating or giving someone crypto counts as a disposition of property, and the CRA lists gifts and donations among reportable transactions. The giver might have a capital gain. How much tax you pay depends on whether the value of the crypto increased between the time you bought it and the time you gave it away, since that would count as a capital gain. If the digital assets lost value in that time, that would result in a capital loss. Gifting is not a way around tax.

Is Crypto Taxed As Business Or Personal Income In Canada?

You might be wondering how you report cryptocurrency taxes in Canada. Profits are usually treated as business income or capital gains, while losses are treated as business losses or capital losses. The CRA decides case by case. It points to factors such as a history of extensive buying and selling, how often you trade, how long you hold, your market knowledge and the time you invest. If your activity is not business-like, it is treated as capital in nature.

Let's use an example: if you bought Bitcoin at $42,000 and sold it at $50,000, you have an $8,000 profit. As a capital gain, 50% of that profit ($4,000) is a taxable capital gain at your marginal tax rate. If you bought Bitcoin at $50,000 and sold it at $42,000, that $8,000 loss would be a capital loss or a business loss depending on your trading pattern. A capital loss can only be used against capital gains.

Should You Report Capital Gains Or Business Income In Canada?

If you are reporting your crypto transactions as business income, you will need to fill out form T2125, which the CRA describes as the form to report business or professional income and expenses. If you are reporting cryptocurrency transactions as capital gains, you need to fill out the Schedule 3 section of your tax return. On the CRA's Schedule 3 page, the capital gain instructions for crypto have you enter your total proceeds on line 15200 and your total gain or loss on line 15301, in Canadian dollars.

Report crypto dispositions as business income if you:

• Operate cryptocurrency businesses that involve crypto business activity, for example running an exchange or ATM, or selling cryptocurrency as a trade
• Have a business plan
• Regularly trade cryptocurrency, for example as a day trader
• Intend to make profits through frequent trading
• Undertake activities in a business-like way, for example seeking investors

These activities suggest you are operating a cryptocurrency business, which can mean you pay business income tax on 100% of the profit. Report crypto dispositions as capital gains and losses if you treat your crypto purchases as investments and you don't operate any kind of commercial business involving cryptocurrency.

What Is The Capital Gains Inclusion Rate For Crypto In 2026?

For a crypto capital gain, the CRA's crypto page says you must include half of your capital gains, known as taxable capital gains, in your income for the year. The CRA's own example turns a $5,600 gain into a $2,800 taxable capital gain. The page for the 2025 return confirms the same: fifty percent of the capital gain is taxable.

Here is the correction I owe you. In April 2024 the federal budget proposed raising the inclusion rate to 66.67% on gains above $250,000, and I explained that proposal in the earlier version of this article, including a worked example. On March 21, 2025, the Prime Minister announced that the government would cancel the proposed hike in the capital gains inclusion rate. So the two-tier calculation I once showed does not apply. Every dollar of capital gain is included at 50%.

Rules do change, so check the CRA pages before you file, and talk to an accountant for large gains.

Taxes On Crypto Mining In Canada

Crypto mining is treated a little differently from trading. The CRA says that for proof-of-work mining, the value of the crypto-assets you receive for your mining activities must be included in your business income at the time it is earned, and that mining activities will generally be considered carrying on a business because of the scale and resources involved. I used to say that a hobby miner who keeps the coins has nothing to report. That is not what the CRA's mining page says, so do not rely on it. Mining equipment and running costs may be deductible against that income, so keep every receipt.

If you eventually sell the coins you mined, the sale is a second event. Your cost for those coins is the value you already included in income when you earned them, which is why recording the CAD value on the day you receive each reward matters.

Taxes On Staking Crypto In Canada

The CRA has now published guidance on staking, which I said it had not when I first wrote this. It says rewards received from staking crypto-assets on a centralized crypto-asset exchange will generally be considered income under the Income Tax Act at the time the rewards are credited to your wallet. Report them at their value in Canadian dollars at that moment, and add them to your income for the year. Rebases and lending yield are not named on the CRA pages I checked, so treat them as income too and ask an accountant.

If you stop staking and then sell the coin, you still need to report the capital gain on that sale. Read my guide on crypto staking for Canadians and the longer piece on staking and taxes.

How Do You Report Crypto On Schedule 3, Step By Step?

Schedule 3 is where most Canadian crypto investors report capital gains. The CRA's Schedule 3 instructions have you enter your total proceeds on line 15200 and your total gain or loss on line 15301, in Canadian dollars. The taxable part then flows into the main return. You have to file the return to report a sale even when no tax is owed.

1. List every sale, swap and spend for the year. Each one is a disposition. Buying and holding is not.
2. Add up the proceeds. That is the CAD value you received on each disposition, and it is your line 15200 number.
3. Subtract the adjusted cost base and selling costs. The result for each disposition is a gain or a loss. Total them for line 15301.
4. Carry the result onto your return. The taxable part of a net gain is added to your income. A net loss can only be used against taxable capital gains.
5. Report staking and mining income separately. It is income when received, not a capital gain.

These numbers are made up to show the arithmetic, not a real trade. A tool like CoinLedger or Koinly can total the proceeds and gains for you when you have many trades.

How Do You Report Your Crypto Taxes In Canada?

Taxes are part of life, and if you don't accurately report your income, the Canada Revenue Agency (CRA) may charge penalties or worse. See my page on whether the CRA can track cryptocurrency. It may seem daunting, but it's important to declare all crypto gains when filing your tax return. If you simply buy and hold crypto, you do not need to report this on your taxes.

1. Gather every record. The CRA wants the number of units and type of crypto-asset for each transaction, the date and time, the CAD value, the addresses of every wallet you used, and your beginning and ending wallet balances with their cost.
2. Export your history now. Download trade and transfer ledgers from each exchange regularly. The CRA says exchanges keep their books for different lengths of time, and a platform that closes can take your history with it.
3. Value each transaction in CAD. The CRA defines fair market value as the highest price a willing buyer and willing seller, both informed and acting independently, would agree to in an open market. You may use a single exchange's rate or an average across several high-volume exchanges. Whichever method you choose, use it consistently from year to year and keep a record of it.
4. Work out each gain or loss. Proceeds less adjusted cost base and any selling costs gives the gain. Income such as staking goes in as income.
5. Decide capital gain or business income. Then use Schedule 3 or Form T2125.
6. File on time. For the 2025 tax year, the standard deadline was April 30, 2026 and June 15, 2026 for the self-employed, with any balance owing still due April 30. For the 2026 tax year, check the CRA's important dates page for the dates in 2027.

The CRA does not endorse specific software, but a third-party tool's receipts can serve as part of your records. A tool can make life easier when you report taxable income and capital gains.

Reporting Your Crypto Income

If you stake crypto, receive rebases, or earn rewards of any kind, then anything you receive counts as income at its CAD value when received. You will need to total the amount up and add it to your income for the year so you pay the correct amount of income tax.

Reporting Your Crypto Trading

If you trade one crypto for another, this can incur a capital gain or loss. If you sell crypto for fiat, this can also incur a capital gain or loss depending on whether the value went up between the time you bought and sold.

Using Koinly To Report Crypto Taxes In Canada

Koinly is a crypto tax calculator that can help you file your income tax return in Canada. Its free tier has limits, and, as I explain below, you need a paid plan to download tax reports. Koinly works with Canada's tax treatment, and on a paid plan you can print reports including an income report, a capital gains report and a buy and sell report. Prices change by tax year, so check its pricing page. I have removed the exact plan prices I used to list because I could not confirm them in Canadian dollars.

Koinly Limitations

Koinly will not know your tax rate or personal tax allowance, and it cannot calculate how much income tax you must pay in any given tax year, because you can't enter employment income or other income. It can help you identify what is taxable in Canada when it comes to crypto capital gains and crypto earnings. Koinly can automatically detect your cryptocurrency income and capital gains and calculate a total for you which you can report on your income tax return. The total amount of tax you pay still depends on other factors such as your tax rate, reasonable costs incurred, other business income, and many other things. Compare it with Coinledger before you buy.

Step 1: Sign Up

First, sign up for an account on the Canadian page with your name and email address. After that, you can start adding all of the crypto exchanges and wallets that you have used. Koinly needs access to all of your information so it can accurately report your crypto income and capital gains. For example, if you bought bitcoin in 2017 and sold bitcoin in 2021, Koinly needs both transactions. If Koinly only has the 2021 transaction, it will assume your cost basis was zero. This will result in a higher capital gains tax liability. Therefore, give Koinly all of your crypto transaction history and cryptocurrency addresses so the software can accurately calculate your liability.

Step 2: Add Exchanges

To add the crypto exchanges and wallets you have used, click wallets, then select or search for your exchange. Koinly supports many exchanges and wallets, including the ones Canadians use most such as Shakepay, Newton, Coinbase and Kraken. If you used a platform that has since closed or changed, such as Bitbuy accounts that moved to Coinsquare and Robinhood, export your history first.

How To Upload Crypto Exchange Data

You will be given a choice to either import your transaction history via a file or automatically via an API key. If you choose the API key option, you can find this key in your exchange account under its API settings, where you can generate a key and secret. Paste these into Koinly, and give the key read-only permissions. In some cases, only part of your transaction history will be imported when you select this method. To get your full transaction history you can import a spreadsheet. Go to your crypto exchange and in your account dashboard there should be an option to export your transaction history. Upload this file into Koinly.

Importing Crypto Transactions From Crypto Wallets

You can also import transactions from your hardware crypto wallets and software wallets by uploading your transaction history file, or by entering the public address. You can find your transaction history in Ledger Live if you use a Ledger.

Step 3: Review Transactions

Once your transactions have been uploaded, visit the transactions page. It is important to go through each and every transaction and confirm the transactions are correct. Koinly will automatically detect crypto staking rewards and label them as rewards. All rewards count as income and Koinly will add them all up for you. If you have a crypto card, Koinly may detect your cashback and label it as a deposit, so check how it is classified, because cashback paid in bitcoin may be income.

Paying With Crypto

If a business accepts cryptocurrency and you use crypto to pay for goods and services, it counts as a barter transaction and the same tax rules apply. Koinly will calculate the adjusted cost basis at the time you bought the crypto and when you disposed of it. If you have a capital gain or loss, Koinly will show the amount in green or red. Your total capital gain for the tax year is shown in your Koinly dashboard. If you have moved crypto from one wallet to another where both belong to you, this is a transfer and Koinly will label it as a transfer.

Editing Transactions

Koinly is not 100% accurate, and that's why you must check and confirm transactions and edit any that are wrong. If the value for a token is missing, you can enter it manually. If Koinly gives an error that it's missing purchase history, this means it has one half of a transaction but not the other, for example it can see where you sold a crypto but not where you bought it. Make sure you have added every exchange you've ever used. In some cases, Koinly may not know about fees you have paid. If you pay Ethereum gas fees, the transaction may appear labelled as sent, but you can change the label to cost. Costs reduce your gain, so it's worth your time to go through the transactions and make sure everything is correct.

Step 4: View Tax Reports

Once you have checked through your transactions, visit the tax reports page, where you can see a breakdown of your crypto income and costs. If you use the free version of Koinly, you won't be able to download tax reports. I think it is worth getting a paid plan to view these reports for tax season. If you seek help from a tax professional, they will want to see exchange records and records of all your transactions, so it saves time to download these reports from Koinly.

Conclusion On Koinly

Koinly can be a big help when you have to report cryptocurrency on taxes in Canada. If you simply buy and hold crypto, you won't need to report anything, but as soon as you trade, sell or stake crypto, it becomes much harder to track. Crypto transactions can add up, especially if you make a few trades a week. Keeping track can be time consuming since you must note down the price of the asset at the time you bought and sold it. You must also note down the value of staking rewards at the time you received them. If you're receiving rewards daily this process soon becomes impossible, especially if you stake more than one asset in more than one place. Using a crypto tax calculator like Koinly is therefore the easiest option when it comes to calculating tax on crypto. We have been using Koinly for a few years now and recommend it to anyone looking to declare income tax from crypto or calculate crypto capital gains. You can check my Koinly review here or sign up here.

How Is GST/HST Applied To Cryptocurrency In Canada?

If your crypto profits are treated as business income then you may be obligated to collect and remit GST/HST. Under the CRA's rules, a small supplier is a business with worldwide taxable supplies of $30,000 or less, measured per quarter and averaged over four consecutive quarters, and a small supplier is not required to register for GST/HST.

Whether you collect GST/HST on a crypto sale depends on the type of asset. Sales of crypto-assets that meet the definition of a virtual payment instrument, such as Bitcoin, Ether and Litecoin, are exempt supplies, so GST/HST does not apply. Other crypto-assets, such as NFTs and utility tokens, are likely taxable sales of intangible personal property. The CRA says mining is generally not a commercial activity under section 188.2 of the Excise Tax Act, so miners usually do not collect GST/HST on payments they receive for mining.

If your business provides goods and services that are not financial and you accept crypto, you still collect and remit GST/HST on the supply, calculated on the fair market value of the crypto at the time of the exchange, once your revenue passes the $30,000 small supplier threshold.

Can You Invest In Crypto Tax-Free In Canada?

Canadian residents can take advantage of the Tax-Free Savings Account (TFSA). The CRA's guide says income earned in the account, including investment income and capital gains, is generally tax-free, even when it is withdrawn. You can't hold crypto itself in a TFSA at an exchange, but securities listed on a designated stock exchange are qualified investments, so you can buy a crypto exchange-traded fund (ETF) in a TFSA at a broker, if the fund's issuer says it is eligible. These ETFs track the price of Bitcoin and other cryptocurrencies. They are aimed at individuals who wish to invest in crypto without having to deal with exchanges, wallets, and all the technical aspects.

ETFs are the easiest way to invest in Bitcoin inside a registered account, but they also have management fees and you won't actually own the coins yourself. Read about the best Bitcoin ETFs to invest in Canada, and there are even more crypto ETFs available.

How Do You Calculate Cryptocurrency Taxes In Canada?

Trying to calculate crypto taxes can be confusing. If you buy crypto, then sell it at a higher price than you bought it, that would count as a crypto capital gain. The CRA says you subtract your property's adjusted cost base, and any outlays and expenses incurred to sell, from the proceeds of disposition. The adjusted cost base is usually the cost of the crypto-asset plus the expenses to acquire it. Half of the result is your taxable capital gain, which is added to your income for the year and charged at your marginal rate. Remember, you will only pay tax on your gain, not your entire crypto investment.

For example, if you had a $20,000 gain, $10,000 would be taxable. If you purchase crypto throughout the year at different prices, you need to total up what you paid for the coins and work out your cost for each sale. The CRA notes that each type of crypto is valued separately and that you must use a reasonable method consistently. For identical coins bought at different prices, the cost per coin has to be worked out across everything you hold, and the method matters, so confirm it with an accountant if the numbers are large.

If you sell your crypto for less than you bought it, that would count as a capital loss. Allowable capital losses are half of your capital losses and can only be deducted against taxable capital gains. You cannot use them against employment income. You can carry them back three years or forward indefinitely.

Crypto taxes in Canada are confusing because there are so many use cases for crypto. You can use crypto as an investment, as a currency for spending, or as a source of passive income. Paying taxes on cryptocurrency in Canada doesn't have to be a headache. Report crypto on your taxes more easily using Koinly or Coinledger, crypto tax calculators and software. With Koinly, you can import your trades via a CSV file, your exchange's API, or your wallet's public keys, and see your gains and losses in one place.

Are NFTs Taxable In Canada?

NFTs in Canada are treated the same way as other crypto-assets for income tax. The CRA describes NFTs as unique digital assets that exist on a distributed ledger, and its list of reportable transactions covers selling, trading, bartering and gifting. Should you sell your NFT for more than you bought it, you would likely have a capital gain, and if you sold it for less than you paid, a capital loss. As with cryptocurrencies, any time you trade an NFT for another, sell an NFT, stake an NFT for rewards, gift an NFT, or use an NFT to pay for goods or services, you may have to report it. Depending on the circumstances you may incur capital gains or losses or business income. For GST/HST, NFTs are outside the virtual payment instrument definition and are subject to the regular rules. If you create and sell your own, read my guide to minting an NFT in Canada.

Accepting Crypto As Payment For Canadian Businesses

If you operate a business in Canada and accept cryptocurrency as a form of payment, you will need to report it as business income. The CRA treats receiving crypto in exchange for goods or services as a barter transaction. You need to note the fair market value of the cryptocurrency at the time you received it. For example, if you sold a guitar for 0.1 BTC, you note the value of 0.1 BTC at the time you received the payment and add this to your business income. If you are a GST/HST registrant, you calculate tax on the fair market value of the crypto at the time of the exchange.

Are Crypto-To-Crypto Transactions Taxable In Canada?

When you exchange one crypto for another it counts as a taxable event. You will have a capital gain or capital loss depending on the value of the crypto at the time you exchanged it. For example, you bought Bitcoin at $20,000 and six months later you exchanged it for Ethereum. The price of Bitcoin had risen to $25,000 at the time of the exchange, so you would have a capital gain of $5,000, of which $2,500 is taxable. If bitcoin dropped in price at the time of the exchange you would have a capital loss. If the price remained $20,000, there would be no capital gain or loss. The same goes for swapping into a stablecoin: it is a trade, not a withdrawal.

What If You Do Not Report Cryptocurrency, Would The CRA Find Out?

I will be direct: do not gamble on not being found. Blockchain transactions are public, and Canadian exchanges must verify your identity, which links your identity to your wallets. A business that receives virtual currency worth $10,000 or more in a single transaction, or amounts that total $10,000 within 24 hours from the same person, must report it to FINTRAC, Canada's financial intelligence agency, within five working days. I used to write that exchanges report these to the CRA, which was inaccurate. The point stands, though: a trail exists.

The penalties are real. Under section 239 of the Income Tax Act, making a false statement or evading tax is an offence. On summary conviction the fine is not less than 50% and not more than 200% of the tax sought to be evaded, with imprisonment of up to two years possible, and on indictment the fine is 100% to 200% with imprisonment of up to five years. I am not describing a risk worth taking for the sake of a few thousand dollars of tax. If you have missed past gains, speak to an accountant about correcting your returns before the CRA contacts you.

Can The CRA Audit Your Crypto Transactions?

Yes. The CRA can review your return and ask for records if it suspects that crypto activity has not been declared. An audit is a thorough investigation, which is why it's so important to keep records. If you are audited, the CRA will notify you and specify the years subject to the audit. Expect questions on the types of cryptocurrencies you bought and sold, the exchanges or wallets you used, where the money you used to buy crypto came from, and passive income such as staking. I used to quote a specific number of questions and a specific penalty percentage here, and I could not source either, so I replaced them with the statutory penalties above.

Final Word On Crypto Tax In Canada

In a nutshell, you do not need to report purchases of cryptocurrency if you simply purchase it and hold it. If you sell it, trade it for another crypto, spend it, or give it away as a gift, then you will need to report these transactions on your tax return. You will need to note the value in Canadian dollars at the time of the transaction. That's why it's so important to keep track of all your crypto transactions, so you can accurately report crypto on your taxes. Keep records for at least six years from the end of the last tax year they relate to, and include:

• The number of units and type of crypto-asset for each transaction
• The date and time of each transaction
• The value of the crypto in CAD at the time of the transaction
• The addresses of each crypto wallet you used
• Beginning and ending wallet balances and their cost
• Accounting, legal and software costs, and mining expenses such as hardware

A full list of records the CRA recommends keeping, along with all official government guidance on cryptocurrencies, can be found here.

What Changed For Crypto Taxes In Canada In October 2026?

• May 1, 2026 The CRA updated its Form T2125 page, the form used to report business income from crypto.
• Apr 30, 2026 The standard filing and payment deadline for 2025 returns passed, with June 15, 2026 for the self-employed.
• Dec 2, 2025 The CRA's page on income from crypto transactions was last dated, confirming that half of a capital gain is included in income.
• Oct 29, 2025 The CRA's crypto guide landing page carries this date, covering obligations, records, valuation, mining and staking, and GST/HST.
• Mar 21, 2025 The federal government announced it would cancel the proposed increase to the capital gains inclusion rate, so the 66.67% tier I used to describe does not apply.

Frequently Asked Questions

How Do I Report Crypto On My Canadian Tax Return?

Work out the gain or loss on each sale, swap or spend. For capital gains, enter your total proceeds on line 15200 and your total gain or loss on line 15301 of Schedule 3. Business income goes on Form T2125, and staking or mining income is reported as income. You must file the return to report a sale even if no tax is owed.

Is Cryptocurrency Taxed In Canada?

Yes. Selling, trading, spending, gifting and earning rewards in crypto are transactions you report. Buying and holding is not. Gains are either a capital gain, where half is taxable, or business income.

What Is The Capital Gains Inclusion Rate For Crypto In Canada?

The CRA says you include half of your capital gains in income. The proposed increase to 66.67% on gains above $250,000 was cancelled on March 21, 2025.

Do I Pay Tax If I Trade One Crypto For Another In Canada?

Yes. Trading one crypto for another is a disposition. You work out the gain or loss in Canadian dollars at the time of the trade.

Do I Have To Report Crypto If I Only Bought And Held It?

No. Buying and holding is not reportable until you sell, trade, spend or give it away.

How Is Crypto Staking Taxed In Canada?

The CRA says rewards from staking on a centralized exchange will generally be considered income at the time they are credited to your wallet. Report them at their CAD value on that day.

How Long Do I Need To Keep Crypto Tax Records In Canada?

At least six years from the end of the last tax year the records relate to. Keep units, dates, CAD values, wallet addresses and balances, and export your exchange history regularly.

Is Crypto Taxed Inside A TFSA In Canada?

The CRA says income and capital gains earned in a TFSA are generally tax-free. You cannot hold coins at an exchange in a TFSA, but you can hold an eligible crypto ETF at a broker.

What Are The Penalties For Not Reporting Crypto In Canada?

Under section 239 of the Income Tax Act, evading tax is an offence. A summary conviction carries a fine of 50% to 200% of the tax evaded and up to two years in prison, and an indictable conviction carries 100% to 200% and up to five years.