Updated Checked by the Tax-Services.ca editorial team How we check
Yes, crypto is taxable in Canada. The CRA treats it like a commodity, so selling it for more than you paid creates a gain, and only half of a capital gain counts as income. A $12,000 gain for an Ontario resident with $80,000 of other income adds about $1,779 of tax.
How does the CRA treat crypto?
As property, not money. Each time you dispose of it, you have a tax event, and that covers more than selling for dollars. Swap one coin for another and it counts. Pay for a coffee or a laptop with crypto and it counts too (the CRA calls that a barter transaction).
Every disposition needs two numbers in Canadian dollars: the proceeds and your adjusted cost base. The cost base is usually what you paid plus the fees to acquire it. For proceeds, use the market value when the trade happens. In a coin-for-coin swap, you price the coin you handed over on that day.
Say Layla in Kelowna bought one coin for $2,000 and later swapped it for a different coin worth $3,500 on the day of the trade. She never saw a dollar land in her bank, yet she has a $1,500 gain. Half of it, $750, is added to her income for the year. The CRA keeps a hub of crypto-asset tax guidance that links to its pages on valuation and record keeping.
Capital gain, or business income?
For most buy-and-hold people, it’s a capital gain. The CRA says a transaction is generally capital in nature unless it’s made on account of business income. Business status depends on the facts: how often you trade, how long you hold, what you know about the market, and how much time you put in.
| Treatment | What you report | Share taxed |
|---|---|---|
| Capital gain or loss | Proceeds less cost base less selling costs | 50% of the gain |
| Business income or loss | Full profit or loss for the year | 100% of the profit |
The gap is big. On the same profit, business treatment puts twice as much into your taxable income. Losses split the same way: a capital loss only works against capital gains, while a business loss can offset other income.
What does one sale cost in tax?
Say you buy crypto for $18,000 and later sell it for $30,000. That’s a $12,000 gain, and $6,000 of it lands on your return. Take an Ontario resident with $80,000 of other taxable income. Run it through the capital gains tax calculator and the extra tax is $1,779, which is 14.8% of the gain, so you keep $10,221.
Paid $200 in selling fees? The gain drops to $11,800 and the extra tax to $1,749.35. Keep a record of every fee.
Why is 14.8% so far below the top of your bracket? Because half the gain is taxed, and that half is taxed at your top rate. The marginal tax rate calculator shows that rate at your income, and the income tax calculator runs the whole return with the gain included.
What if you lost money?
A loss counts too, and it’s worth recording. If you paid $10,000 for a coin and sold it for $7,000, that’s a $3,000 loss, and half of it, $1,500, is the amount that can offset capital gains. The page above only covers the basic rule: capital losses work against capital gains. How unused losses carry to other years is a separate rule we didn’t verify here, so check the CRA’s capital gains guidance before you plan around it.
What crypto records should you keep?
Proving your cost base is your job, and exchanges won’t do it for you. For every trade, write down:
- the date and time of the trade
- the coin and the number of units
- the value in Canadian dollars then, and where you took it from
- fees paid in any currency
- wallet addresses and exchange statements
Business records have to be kept for six years from the end of the last tax year they relate to. Doing the same for crypto is a sensible habit even if you only report capital gains.
Where do people go wrong?
Mostly by treating a coin-for-coin swap as tax free. It’s a disposition, so a gain can be taxable while your bank balance never moves. The next slip is forgetting small purchases made with crypto. Each one disposes of the coins you spent, even a double-double at Timmies, though a purchase that small usually has a tiny gain or loss attached.
Then there’s averaging. If you bought the same coin several times, bring in each buy at its real price and stick to one consistent method. The calculator here works from one purchase and one sale, so add up your history before you enter a total.
We didn’t cover mining, staking, airdrops or the rules on losses when you buy the same coin back soon after selling. The pages we read didn’t settle those points, so check the CRA guide for crypto users or ask a tax professional. And if you think you may be in business, get advice before you file.
One more thing. The calculator uses the 50% inclusion rate in force for 2026. The proposal to raise it above 50% was cancelled in March 2025.
Where the numbers come from
The treatment of crypto comes from the Canada Revenue Agency guidance for crypto-asset users and tax professionals, read in 2026. Tax rates and brackets come from federal and Ontario 2026 figures published by the CRA. This site is independent and is not linked to the CRA or any government.
To see how your other income is taxed, try the income tax hub, or the ROI calculator to compare your return before and after tax.
Frequently asked questions
Is crypto taxed in Canada?
Yes. The CRA treats it as a commodity, and profit from selling or swapping it is taxed as either a capital gain or business income.
How much of a crypto gain do I pay tax on?
Half, if it's a capital gain. A $12,000 gain adds $6,000 to your income, while business income is taxed in full.
Do I owe tax when I swap one coin for another?
Yes. A swap is a disposition, valued in Canadian dollars on the day you make it.
Does spending crypto count?
Yes. Paying for goods with crypto disposes of that crypto, and the CRA calls it a barter transaction.
What records do I need for crypto?
For every trade, the date, units, Canadian dollar value, fees, and wallet or exchange statements, so you can prove your cost base.