Updated Checked by the Tax-Services.ca editorial team How we check
Yes. In Canada, selling, trading or spending cryptocurrency is a disposition, and the CRA treats crypto like a commodity. The result is a capital gain or loss, or business income if your activity looks like a business. Half of a capital gain is included in your income. Mining and staking rewards are generally income when you receive them.
When is a crypto tax event triggered?
- Selling crypto for dollars.
- Trading one coin for another.
- Spending crypto on goods or services, which the CRA treats as a barter transaction.
- Gifting or donating crypto.
Moving crypto between wallets you own is not a taxable disposition, and neither is simply holding it. Each disposition produces a capital gain or loss: the proceeds minus the adjusted cost base, which is usually what you paid plus acquisition expenses, and minus the outlays and expenses of selling. For a crypto-to-crypto trade, the CRA compares the Canadian dollar fair market value at the time of the trade with the adjusted cost base. Say you paid $2,000 for a coin and trade it for another worth $5,000 CAD. You have a $3,000 gain, and $1,500 of it is included in your income.
When is crypto business income?
If your activity looks like a business, you report the full profit as business income instead. The CRA lists factors such as frequent trading, short holding periods, market knowledge, the time you spend, borrowed money and advertising. Mining is usually a business given its scale. Mining rewards are income when you earn them, and staking rewards on a centralized exchange are generally income when they are credited to your wallet on the platform.
Can you deduct crypto losses?
Half of a capital loss is an allowable capital loss, and it can only be used against taxable capital gains, not against other income like a paycheque. Unused amounts become net capital losses, which you can carry back three years or forward without limit. The capital gains tax calculator shows the effect. Report capital gains on Schedule 3 of your return.
What records do you need for crypto?
The CRA asks you to keep the date and time, the type and amount of crypto, its Canadian dollar value, a description of each transaction and who was on the other side (a wallet address is fine), and the wallets you used. Also keep your opening and closing balance for each coin each year, with the cost of the opening balance, and receipts for accounting, legal and software costs. Exchange users should download trade and transfer history regularly in case the platform shuts down. Keep records for at least six years from the end of the last tax year they relate to.
For other payments, see the table on Is it taxable?, the Crypto.com tax Canada article, the side hustle tax calculator and the income tax calculator.
Where does this information come from?
The treatment comes from the Canada Revenue Agency cryptocurrency pages Reporting income from crypto-asset transactions, Reporting income from crypto-asset mining and staking activities, Understanding crypto-assets and your tax obligations and Keeping books and records of crypto-assets, and its capital gains guidance. Rules for crypto change, so read the current CRA page. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Is trading one cryptocurrency for another taxable in Canada?
Yes. The CRA treats a trade of one crypto-asset for another as a disposition. You compare the Canadian dollar fair market value of the coin you gave up at that time with its adjusted cost base, and the difference is a capital gain or loss.
Is moving crypto between my own wallets taxable?
No. The CRA says moving crypto between wallets you own is not a taxable disposition. You still need to keep records of the transfer, including the wallet addresses, so your cost base and balances can be backed up later.
Are crypto staking and mining rewards taxable in Canada?
Generally yes. Mining rewards are income when you earn them. Staking rewards on a centralized exchange are generally income when they are credited to your wallet on the platform. The value is included in income at that time.
How much of a crypto gain is taxed in Canada?
For a capital gain, half is included in your income. If the CRA sees your activity as a business, for example from frequent trading, you report the full profit as business income. A capital loss can only be used against capital gains.
How long should I keep my crypto records?
The CRA says to keep required books and records for at least six years from the end of the last tax year they relate to. Download your exchange history regularly, because you may lose access if a platform stops operating.