Canada Cryptocurrency Tax
Detailed cryptocurrency tax rates and rules for Canada in 2026.
The Canada Revenue Agency treats cryptocurrency as a commodity for tax purposes. Disposing of cryptocurrency—whether by selling, trading, gifting, or using it to purchase goods and services—is a taxable event. For most individual investors, gains and losses from crypto transactions are treated as capital gains, with 50% of the gain included in taxable income. However, if cryptocurrency trading constitutes a business activity (frequent trading, commercial intent, or short holding periods), 100% of profits are taxed as business income at the individual's full marginal rate.
Crypto Tax Status
Taxed
Treatment
Property (Commodity)
Additional Notes
Mining, staking, and airdrops may be treated as either business income or a hobby depending on the scale and commercial nature of the activity. If treated as business income, expenses related to mining (electricity, hardware) are deductible. The CRA requires taxpayers to keep detailed records of all cryptocurrency transactions, including dates, amounts, fair market value at the time of transaction, and the purpose of each transaction. Canada does not have specific crypto legislation, but the CRA has issued guidance confirming that existing income tax rules apply. Cryptocurrency held in a TFSA is generally not permitted, as digital assets are not considered qualified investments.
How Canada Crypto Tax compares
Canada taxes cryptocurrency gains. 68 of 203 countries TaxAtlas tracks take the same approach, which is useful context when weighing where to live, invest, or incorporate.
