Canada Crypto Tax Guide: Capital Gains vs Business Income

Short answer: In Canada, the CRA treats crypto as a commodity, and character decides the tax. An occasional investor realizes capital gains, of which only 50% are taxable at your marginal rate. Frequent, leveraged or occupation-like trading can be reclassified as business income – 100% taxable. Canada pools purchases using Adjusted Cost Base, and its superficial loss rule can deny a loss if you or your spouse rebuy within 30 days and still hold the asset.

Canada’s crypto tax turns on one question: are you an investor or a business? The answer decides whether 50% or 100% of your gains are taxed.

How does the CRA treat crypto?

The CRA treats crypto as a commodity. The pivotal question is character: an occasional investor realizes capital gains, of which 50% are taxable at your marginal rate. Trade frequently, with leverage, as your occupation, or with a clear commercial pattern, and the CRA can call it business income – 100% taxable. (A proposed rise in the inclusion rate was cancelled in 2025; the 50% rate stands – verify before filing.)

What counts as a disposal, and how do I report?

Disposals include selling, swapping, spending, and gifting. Canada uses Adjusted Cost Base pooling, and the superficial loss rule can deny a loss if you (or your spouse) rebuy within 30 days and still hold it – unlike the US, harvesting needs care. Mining and staking receipts are income when received. Keep CAD values for every transaction and report on Schedule 3; large foreign holdings may also need Form T1135.

Frequently asked questions

How much of a crypto capital gain is taxable in Canada?

For an occasional investor, only 50% of a capital gain is taxable, at your marginal rate. Frequent, leveraged or occupation-like trading can be reclassified as business income – 100% taxable.

What is Canada’s superficial loss rule?

The superficial loss rule can deny a loss if you (or your spouse) rebuy within 30 days and still hold the asset. Unlike the US, tax-loss harvesting needs care in Canada.

How do I report crypto in Canada?

Keep CAD values for every transaction and report on Schedule 3; large foreign holdings may also need Form T1135. Mining and staking receipts are income when received.

Related guides

• UK Crypto Tax Guide: HMRC, Capital Gains & the 30-Day Rule
• How Crypto Is Taxed in the US: The Complete 2026 Beginner’s Guide
• India Crypto Tax Guide: 30% Tax & 1% TDS on VDAs Explained

Sources

• CRA Capital Gains guide (T4037) – how capital gains are calculated and reported in Canada.
• CRA ‘Digital currency’ guidance – the CRA’s guidance on cryptoassets. Verify at canada.ca.

This guide is general education only – not tax, legal or financial advice. Verify with the source authority and a qualified tax professional before filing.