Cryptocurrency is taxable in Canada, and CRA has been actively pursuing non-compliance since 2019. Here's what you need to know for your 2025 return filed in 2026.
Capital Gain or Business Income?
Capital property (most investors): Buy and hold; occasional trading. Gains taxed as capital gains — 50% inclusion up to $250,000 annually.
Business income (active traders/miners): Frequent trading, mining, or crypto as a business. 100% of gains are business income.
Taxable Events
- Selling crypto for Canadian dollars
- Trading one crypto for another (BTC for ETH creates a disposition)
- Using crypto to buy goods or services
- Mining and staking rewards (income at fair market value when received)
- NFT sales
Tracking Your ACB
For each cryptocurrency, track every purchase price and calculate the weighted average cost. Hundreds of transactions require specialized software: Koinly, CoinTracker, or CryptoTaxCalculator.
The $250,000 Threshold
For gains after June 25, 2024: individuals pay 2/3 inclusion on capital gains above $250,000 per year. Plan large dispositions across calendar years where possible.
CRA Enforcement
CRA has data-sharing agreements with major exchanges and has sent warning letters to thousands of holders. Non-reporting is detectable. Use Voluntary Disclosure if you have prior unreported crypto gains.