What to take away
- Buying and holding is not taxed, but selling, trading, spending or gifting crypto-assets is a disposition that must be valued in Canadian dollars.
- If your activity is not a business, gains are generally capital gains, of which half is taxable, but frequent trading or mining can be business income, which is fully taxable.
- Keep a complete transaction history and your valuation method for at least six years, because exchanges may not keep it for you.
What counts as a taxable event
The CRA describes crypto-assets as digital representations of value that rely on cryptographically secured distributed ledgers. Its guidance covers payment tokens, utility tokens, security tokens, non-fungible tokens and stablecoins. The tax question is rarely about the type of token. It is about what you did with it.
Selling for dollars, trading one crypto-asset for another, using crypto-assets to buy goods or services, and giving them away as a gift or donation can each be a disposition. Paying for something with crypto is treated as a barter transaction. By contrast, moving crypto-assets between wallets that you own is not a taxable disposition, and simply holding them does not create tax. The practical consequence is that a swap on an exchange is not a tax-free rollover: you have effectively sold one asset and bought another at the same moment.
Capital gain or business income
Which result applies depends on the facts. The CRA says activity is business income when it is consistent with carrying on a business, and it lists factors such as how often you transact, how briefly you hold, your knowledge of the market, the time you spend, whether you borrow to invest and whether you advertise. Each case is assessed on its own, and the CRA notes that even an isolated transaction can be on account of business income if it is an adventure or concern in the nature of trade.
If the activity is not business income, a gain is generally a capital gain: the proceeds minus the adjusted cost base and the costs of selling. You include half of a capital gain, called the taxable capital gain, in income. The proposed increase in the inclusion rate was cancelled, and the CRA’s current crypto guidance still treats half as taxable. Business income is different: the full profit or loss is reported, and the cost of crypto-assets sold flows through your business accounts. If your trading is regular and organized, ask your accountant which treatment fits before you file.
Value every transaction in Canadian dollars
You need a Canadian-dollar value for each acquisition and disposition. The CRA generally accepts fair market value, meaning the highest price a knowledgeable, prudent and independent buyer and seller would agree to in an open market. For a trade between two crypto-assets, that means valuing what you gave up and what you received at the time of the trade.
When no direct price is available, the CRA expects a reasonable method that you apply consistently from year to year and that you document. Acceptable approaches include the rate shown by the exchange you use, or an average of the high, low, open and close across several high-volume exchanges. Each crypto-asset is valued separately. Write down the method once and follow it every year, so a reviewer can see that the numbers were not chosen to suit the result.
An illustrative example
The figures are round and illustrative only. Suppose you bought a coin for $6,000 and later sold it for $7,000. The gain is $1,000, so $500 is the taxable capital gain. If the same coin had sold for $5,000 instead, the loss would be $1,000 and the allowable capital loss would be $500.
Now suppose you use one coin that cost you $15,000 to pay for another asset worth $20,000 at the time. You have disposed of the first coin for $20,000, a $5,000 gain, even though no dollars moved, and $2,500 of it is taxable. The new asset’s cost is its value at that moment. Real transactions also involve fees, which can be part of the cost or of the selling expenses, so ask how yours should be treated.
Losses, averaging and the superficial loss rule
Allowable capital losses are half of your capital losses, and they can only be deducted against taxable capital gains, not against employment or other income. An excess becomes a net capital loss, which the CRA says can be carried back three years or carried forward indefinitely against taxable capital gains.
Two further rules matter for active traders. The CRA’s capital gains guide says that when you buy and sell identical properties at different prices, you work out an average cost for the group rather than choosing which units you sold. Its examples are shares and mutual fund units, and it does not spell out how that applies to every token, so ask how your accountant treats yours. A superficial loss can also arise when you sell at a loss and you or an affiliated person buys the same or an identical property in the period from 30 days before to 30 days after the sale and still holds it 30 days after. A superficial loss cannot be deducted at that time. Because these rules are detailed, review them with your accountant before selling at a loss to claim it.
Mining, staking and other income
Mining is different from trading. The CRA says the value of crypto-assets received from mining must be included in business income when earned, and that in most cases mining is considered carrying on a business because of its scale and resources. Mining equipment may qualify for capital cost allowance, and the CRA considers that ASIC miners and GPU rigs can meet the conditions for class 50.
Rewards from staking on a centralized exchange are generally income when they are credited to your wallet on the platform. Receiving crypto-assets for goods or services is also an acquisition you value at that time. The CRA’s pages do not address every reward type, so if you receive something not mentioned here, such as a promotional token, ask before assuming how it is taxed.
GST/HST and crypto
If you sell or accept crypto-assets as part of a business, GST/HST can apply even when income tax treats them as investments. A registrant that accepts crypto as payment for a taxable supply must calculate the GST/HST on its fair market value at the time and keep a record of how it was determined. Selling a virtual payment instrument such as bitcoin is an exempt financial service, so no GST/HST is charged and related input tax credits are generally not available. Other crypto-assets, such as certain tokens, can be taxable sales.
Miners are generally not engaged in commercial activity for GST/HST, with an exception when mining is done for a known person. These rules depend on the asset and the business, so see our GST/HST service or the related article on forgetting to charge tax if you think they apply.
Records to keep and what to bring
The CRA asks you to keep adequate records of each transaction: the units and type of asset, the date and time, the Canadian-dollar value, the nature of the transaction and the other party, the wallet addresses you used, and your opening and closing balances for each asset each year, including the cost of the opening balance. Keep receipts for accounting, legal and software costs. Keep records for at least six years from the end of the last tax year they relate to.
Exchanges keep records to different standards and for different periods, and they can close or stop serving Canadians, so export your history regularly. Bring the exports, your valuation method and a list of wallets to your accountant, along with the prior-year figures for your opening balance. You report capital gains on Schedule 3, where the CRA has a dedicated crypto-asset line. If you missed reporting past years, see our guide to catching up on taxes.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- What’s new for corporationsCanada Revenue Agency
- Capital lossesCanada Revenue Agency
- Understanding crypto-assets and your tax obligationsCanada Revenue Agency
- Reporting income from crypto-asset transactionsCanada Revenue Agency
- Determining the value of crypto-assets for tax filingCanada Revenue Agency
- Reporting income from crypto-asset mining and staking activitiesCanada Revenue Agency
- Collecting and remitting GST/HST from crypto-asset transactionsCanada Revenue Agency
- Keeping books and records of crypto-assets for tax filingCanada Revenue Agency
- Guide T4037, Capital GainsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.