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The CRA says crypto mining is generally a business in Canada. The value of the coins you receive is business income when earned, in Canadian dollars, and you can deduct the costs of earning it. Mining hardware may qualify for capital cost allowance in class 50.
Is crypto mining a business in Canada?
Usually, yes. The CRA's page on mining and staking activities (dated 2025-11-10) says that mining, because of its scale and the resources it needs, is generally a business for a resident of Canada. Any business income or loss from it must be reported on your return.
Proof-of-work mining means running computers that solve math problems to confirm transactions. In return the miner earns newly created coins and transaction fees. The CRA does not set a minimum size. A person with one machine in a spare room and a company with a rack of rigs are both in the territory the CRA describes, and the question is whether the activity looks like carrying on a business.
The CRA's general page on crypto transactions lists the factors it looks at for business income: how often you transact, how long you hold, how much you know about the market, the time you spend, whether you borrowed money, and whether you advertise. Mining is worked out on the facts, and a very small, occasional operation may be argued differently. Our page on side hustle or hobby income explains how the CRA tells the two apart.
This page is information only. It reports what the CRA has published and marks what is still open.
When is mining income taxable income, and at what value?
The CRA page says the value of the coins you receive for mining must be included in your business income, and the timing follows when the income is earned. In plain terms, each reward is revenue on the day you receive it, measured in Canadian dollars.
The CRA page on valuing crypto-assets (2025-11-10) accepts fair market value, which it describes as the highest price, expressed in dollars, a willing buyer and a willing seller would agree to. You may take the rate from the exchange broker you use, or average the values from several high-volume brokers. Each type of coin is valued on its own, and the method must stay the same from year to year.
Block rewards and transaction fees both count. If you mine through a pool, the payouts you receive from the pool are what you track, together with the pool's records of your share.
What does a mining income calculation look like? A 2026 example
Here is a simple example with made up numbers. A miner in Ontario earns 3 coins during 2026. On the days they were received, each was worth $35,000. The miner paid for electricity, pool fees and repairs.
| Line | Amount |
|---|---|
| Revenue (3 coins at $35,000 on the days received) | $105,000 |
| Electricity | $11,500 |
| Pool fees | $3,000 |
| Repairs and maintenance | $5,500 |
| Total expenses | $20,000 |
| Business income before capital cost allowance | $85,000 |
All $85,000 is business income. There is no one half rule here. Capital cost allowance on the hardware, if claimed, would come off this figure. The tax on the result depends on the miner's other income and province, so use the self-employed tax calculator to try numbers.
The miner then keeps the coins. Later in the year one coin is sold for $38,000. The coin was counted as $35,000 of income when it arrived, so the difference is $3,000. If the CRA treats that sale as a capital transaction, half of it ($1,500) is taxable. If the coins are business inventory, the $3,000 is business income in full. The CRA mining page does not say which applies to a miner who holds coins, and the CRA's value page has inventory rules for businesses, so this is a point to confirm.
Which costs can a miner deduct?
The CRA mining page names one deduction directly, capital cost allowance on equipment. It does not list the running costs. For those, the ordinary rules for business expenses apply: the cost has to be reasonable and incurred to earn the income. The CRA's guide for business income is T4002, which the crypto pages point to.
The CRA page on books and records (2025-11-10) tells you what a miner should keep, which is a good hint at what the CRA expects to see:
- Receipts for the hardware you bought for mining.
- Receipts and records for power costs, mining pool fees, maintenance costs and the specifications of the hardware.
- Records of how long the hardware ran.
- Each pool agreement, plus exports of your mining activity inside each pool.
The record of operating time matters if the machines run in your home. Power for a rig that shares a house meter with the family has a personal part, and only the business part is a cost. Our self-employed expenses guide goes through how shared costs are split. Software costs for tracking and accounting are also on the CRA's list of receipts to keep.
How does capital cost allowance work for mining hardware?
The CRA says ASIC miners and GPU mining rigs can meet the conditions to fall in capital cost allowance (CCA) class 50. Class 50 is general purpose computer equipment. The CRA's list of CCA classes (page dated 2026-08-31) shows a rate of 55% for class 50 equipment acquired after March 18, 2007.
CCA lets you deduct the cost of equipment over time. It is a claim you choose to make, up to a maximum, and the first year has its own rules, so the figure in a given year is not simply the rate times the cost. The same CRA page also describes a proposed enhanced first year deduction for class 50 property acquired after April 15, 2024 and available for use before 2027. It says proposed, so check its current status before counting on it. Our capital cost allowance guide explains the basics.
Because mining hardware loses value quickly, the amount left in the class and the sale of old rigs both need records. Keep each purchase invoice, the date a machine was ready to use, and the date and price of any disposal.
Does GST/HST apply to crypto mining?
Generally not. The CRA's page on GST/HST and crypto-assets (2025-11-10) says a person engaged in mining activity is generally not engaged in commercial activity for GST/HST purposes, even though they may be carrying on a business for income tax. In the general case that also means the miner cannot claim input tax credits for the GST/HST paid on mining expenses.
There is an exception. The CRA says that when one person performs mining activity for another person whose identity is known, the miner may be making a taxable supply to that person. In that case the miner may be able to claim input tax credits on the expenses. Mining on your own account into your own wallet is different from mining for a named customer.
The other parts of the GST/HST page, such as the $30,000 small supplier test, apply to what a registrant sells or accepts. See our GST/HST registration guide for the general rules.
What if the miner is not a resident of Canada?
The CRA says a non-resident who uses mining equipment located in Canada may be carrying on business in Canada and may need to file a Canadian return. If a tax treaty applies, the page adds that the equipment could create a permanent establishment, which is a fixed place of business that gives a country the right to tax the profits.
That matters for people who host machines in a Canadian data centre while living abroad. The page does not go further. Where the rules are unclear, the treaty and the facts decide, and a professional with cross border experience should look at it. Residents of Canada who mine with equipment kept abroad are not addressed on the page.
How do you report mining income on the 2026 return?
Business income from mining is reported on form T2125, Statement of Business or Professional Activities, with the net result carried to your return. A 2026 return is due June 15, 2027 for people with business income, but any balance owing is due April 30, 2027. Budget 2026 proposes a May 15 filing and payment date for all individuals, including self-employed people, but only from the 2027 tax year, and it is still a proposal. It would not change the 2026 dates.
Net self-employment income can also bring Canada Pension Plan contributions and, if the tax bill is large, instalment payments. The tax instalments calculator and the CPP and EI maximums page show how those work. Use the crypto tax guide for the wider picture.
The CRA asks you to keep records for at least six years after the last tax year they relate to, and to export your pool and platform history regularly in case you lose access.
What are the common mining tax mistakes?
- Waiting until the coins are sold. The CRA treats the reward as income when earned.
- Using one year end rate for the whole year, instead of the value on each day a reward was received.
- Claiming all home electricity as a business cost without a record of operating time.
- Missing the pool payout records, which are the only proof of what was earned.
- Ignoring CCA on hardware, or claiming it with no purchase invoices.
- Assuming the half inclusion rate applies to mining income.
Frequently asked questions
Is crypto mining taxable in Canada?
Yes. The CRA says mining is generally a business for a resident of Canada, and the value of the coins you receive must be included in business income. The income is counted when earned, in Canadian dollars, and the costs of earning it can be deducted.
Do I report mined coins when I receive them or when I sell them?
When you receive them. The CRA page says the value of the crypto-assets received for mining must be included in business income. A later sale of the coins is a separate matter and can add a gain, a loss or more business income, depending on the facts.
Can I deduct my electricity and pool fees?
The CRA mining page names only capital cost allowance on equipment. Power costs and pool fees are ordinary business expenses if reasonable and incurred to earn the income. The CRA asks miners to keep power and pool fee records. A personal share of home power is not a business cost.
What is CCA class 50 for mining rigs?
The CRA says ASIC miners and GPU rigs can meet the conditions for class 50, general purpose computer equipment. The CRA list of classes shows a 55% rate. The amount you claim in a year follows the first year rules and is a choice, up to a maximum.
Does a miner charge GST/HST?
Generally a miner is not engaged in commercial activity for GST/HST purposes, so there is nothing to charge and no input tax credits to claim. The CRA notes an exception when mining is done for another person whose identity is known, where a taxable supply may be made.
Does the half inclusion rate apply to mining income?
No. The one half rate is for capital gains. Business income from mining is included in full. Only if you later sell coins and the sale is a capital transaction does half of that gain count, which the CRA mining page does not address for miners.