Taxes · 🇨🇦 Canada
Crypto and tokenized asset taxes in Canada
Half of a crypto capital gain is added to income and taxed at your marginal rate; if your activity is a business, the full profit is taxed. The planned rise to two-thirds was cancelled.
Also in: fr
Crypto
Gains
50% of the gain included in income, taxed at combined federal + provincial marginal rates; business income fully taxed
Losses
Half of capital losses (allowable capital losses) offset only taxable capital gains; net capital losses carry back 3 years or forward indefinitely.
Also
Whether gains are capital or business income depends on facts such as trading frequency, holding period and time spent. Crypto-to-crypto trades are dispositions. The proposed increase of the inclusion rate to 66.67% was cancelled in March 2025.
Income and tokenized assets
Staking, lending, yield
Staking, mining, lending and similar rewards are generally income (business or property income) at fair market value when received; the later sale gives a separate gain or loss. CRA has no detailed published rule for every DeFi case.
Tokenized stocks, bonds, funds
No specific guidance. CRA notes crypto-assets are not necessarily securities (shares or bonds) for income tax purposes. A token that is legally a share, bond or fund unit is likely taxed like that security (capital gains, dividends, interest), but this is not confirmed by CRA. Crypto ETFs listed in Canada are ordinary securities and can be held in a TFSA or RRSP; direct crypto cannot.
Filing
Tax year
Calendar year; individual return due 30 April of the following year (15 June if self-employed, payment still due 30 April)
Reporting
Report gains on Schedule 3 (capital) or as business income. Keep records for at least six years. Foreign property over CAD 100,000 cost, which can include crypto held outside Canada, may require Form T1135. Canada is implementing the OECD CARF: platforms collect self-certifications from new users after 31 Dec 2025; Budget 2025 moved the start of CARF reporting to 1 Jan 2027.
Tax authority
Watch out
- Frequent trading can turn capital gains (50% taxed) into business income (100% taxed).
- The superficial loss rule can deny a loss if you buy the same asset back within 30 days.
- Older guides still quote a 66.67% inclusion rate above CAD 250,000: that change was cancelled.
- Provincial tax rates differ; Quebec files a separate provincial return.
Sources
- CRA — Reporting income from crypto-asset transactions · canada.ca
- CRA — Understanding crypto-assets and your tax obligations · canada.ca
- CRA — Keeping books and records of crypto-assets · canada.ca
- Questrade — Capital gains tax changes in Canada · questrade.com
- PwC Canada — Draft legislation to implement CARF · pwc.com
- Investment Executive — Canada to require cryptoasset reporting by 2027 · investmentexecutive.com
Not confirmed
- Existing summary's authorityUrl (…/digital-currency/cryptocurrency-guide.html) now returns 404; replaced with the current CRA crypto-asset pages.
- Exact first CARF reporting year (calendar 2026 data reported in 2027 vs. 2027 data) and passage of Bill C-31 not confirmed in a Finance/Parliament source.
- T1135 coverage of self-custodied crypto and superficial loss rule wording not re-checked on a CRA page this round.
- Tax treatment of tokenized securities and tokenized gold: no CRA guidance found.
Researched 2026-11-01 for private individuals resident in Canada. Information, not tax advice — rules change; check the tax authority before you file.