How crypto is taxed in Canada (2026)
The CRA treats cryptocurrency as a commodity, not money. You trigger a taxable event whenever you dispose of crypto — selling it for dollars, trading one coin for another, or using it to buy something. The profit (proceeds minus what you paid) is normally a capital gain.
The 50% inclusion rate
Only half of a capital gain is taxable in Canada. That taxable half is added to your income for the year and taxed at your marginal rate; the other half is completely tax-free. (The proposed increase to a 66.67% inclusion rate above $250,000 was cancelled in 2025 and does not apply in 2026.)
Why your income matters
Because the taxable half stacks on top of your other income, your crypto gain is taxed at your marginal bracket. Someone earning $50,000 pays less on the same gain than someone earning $200,000. That's why this calculator asks for your other income and your province.
Capital losses
If you sell at a loss, you have a capital loss. It can offset capital gains in the current year, be carried back three years, or carried forward indefinitely — but it cannot reduce regular employment income.
Frequently asked questions
Do I owe tax if I only bought crypto and held it?
No. Simply buying and holding crypto is not taxable. Tax applies only when you dispose of it — sell, trade, or spend it.
Is trading one coin for another taxable?
Yes. Swapping, say, Bitcoin for Ethereum is a disposal of the Bitcoin at its fair market value in Canadian dollars, which can create a capital gain or loss.
What if I trade very frequently?
High-frequency or business-like trading can be taxed as business income (100% taxable) rather than capital gains. If that may be you, talk to a tax professional — this tool assumes capital-gains treatment.