Filing crypto taxes can feel overwhelming, but you're not alone. The Canada Revenue Agency (CRA) requires all taxpayers to report crypto gains and income, and with the April 30 deadline approaching, it’s important to get it right.
To make things easier, we’ve teamed up with crypto tax calculator Koinly to answer your biggest tax questions and help you navigate the process with confidence.
This guide is for informational purposes only. Always consult a tax professional for personalized advice.
Key Facts
The tax year runs from January 1 to December 31 .
The filing deadline is April 30, 2025 .
Crypto profits are taxed as capital gains or business income .
Capital gains : Pay tax on 50% of your profit in most instances.
Business income : Pay tax on 100% of your profit .
Gains and losses go on Schedule 3 , income goes on T1 .
Penalties apply for incorrect or missing reports .
When You Don’t Pay Tax
Not all crypto transactions are taxable. The following are
tax-free:
Buying crypto with Canadian dollars.
Transferring crypto between personal wallets.
Holding crypto without selling it.
Receiving crypto as a gift.
How Crypto Is Taxed
Crypto profits are categorized as
capital gains orbusiness income:
Capital Gains Tax – You pay tax on 50% of your profit .
Business Income Tax – You pay tax on 100% of your profit .
The CRA
determines this case by case, considering factors such as:
Frequent trading or large transactions .
Promoting crypto services .
A clear intent to make a profit .
For most casual investors, profits will be categorized as capital gains.
Taxable Transactions
Capital Gains
These transactions result in a gain or loss:
Selling crypto for Canadian dollars .
Trading one crypto for another (including NFTs and stablecoins).
Spending crypto on goods or services .
Gifting crypto to someone else .
Under new legislation, if your gains exceed $250,000 per year from 2026, you’ll pay tax on two-thirds of your gains instead of half.
Crypto Income
Some transactions are
fully taxable as income:
Getting paid in crypto .
Mining cryptocurrency.
Staking rewards .
Referral bonuses .
Selling NFTs you created .
If you
trade at scale , your activity may be classified as business income meaning you pay tax on 100% of your profits.
How to Calculate Taxes
1. Determine Your Cost Basis
Your cost basis is the purchase price plus fees.
For example:
You bought 2 BTC for $50,000 and paid a $500 fee .
Your total cost basis is $50,500 .
If you earned crypto as income, your cost basis is thefair market valuein
CAD on the day you received it
2. Use the Average Cost Basis Method
If you own multiple units of the same asset, the CRA requires you to use the
average cost basis method.
Example:
You own 3 BTC bought at $30,000, $40,000, and $50,000 .
Your total cost: $120,000 .
Your average cost basis: $40,000 per BTC .
3. Calculate Your Gain or Loss
To determine your taxable amount:
If you sell 1 BTC for $45,000 and your cost basis is $40,000 , your capital gain is $5,000 .
You pay tax on 50% of this gain ($2,500), unless you exceed the $250,000 threshold .
Capital losses can
offset gains
to reduce your tax bill or be carried forward.
Ways to Reduce Your Tax Bill
Track unrealized losses to find tax-saving opportunities.
Harvest losses to offset gains and lower taxes - but remember the superficial loss rule.
Use an RRSP to defer taxes on crypto gains.
Hold long-term to delay tax liability.
Lost or Stolen Crypto
The CRA
has no official policy
on whether stolen crypto can be claimed as a loss. However, since capital property theft
can
be deducted in some cases, you should speak with a tax professional to assess your options.
How to File
Once you calculate your capital gains, losses, and income, report them on your tax return:
Schedule 3 – Report capital gains and losses.
T1 General Tax Return – Report crypto income.
File online through the CRA’s MyAccount portal or use tax software like TurboTax
Tips for Filing
Crypto tax calculations can be complicated, but tools like Koinly can help by:
Importing transactions from exchanges.
Calculating cost basis using CRA’s average cost method.
Generating tax reports for CRA filing.
Final Thoughts
Crypto taxes don’t have to be confusing. Keep good records, file accurately, and use tax software or an accountant if needed. Stay updated on CRA policies to ensure compliance.
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At tax time, download a CRA-compliant crypto tax report for easy filing.
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The information provided in the blog posts on this platform is for educational purposes only. It is not intended to be financial advice or a recommendation to buy, sell, or hold any cryptocurrency. Always do your own research and consult with a professional financial advisor before making any investment decisions. Cryptocurrency investments carry a high degree of risk, including the risk of total loss. The blog posts on this platform are not investment advice and do not guarantee any returns. Any action you take based on the information on our platform is strictly at your own risk. The content of our blog posts reflects the authors’ opinions based on their personal experiences and research. However, the rapidly changing and volatile nature of the cryptocurrency market means that the information and opinions presented may quickly become outdated or irrelevant. Always verify the current state of the market before making any decisions.
