Crypto taxes in Canada, CRA-ready.
Import every transaction, apply the ACB method and the 50% inclusion rate automatically, and get Schedule 3 figures — in minutes.
Prefer a step-by-step walkthrough? Read the full Canada guide →
Tax Rates
Capital gains — 50% inclusion rate (ACB method)
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity. Disposing of crypto (selling, trading, gifting, or spending it) is a disposition that produces a capital gain or loss — unless your activity amounts to a business, in which case it is business income. For capital gains, only 50% of the net gain is taxable (the inclusion rate); that half is added to your income and taxed at your combined federal and provincial marginal rate. Business income is 100% taxable but lets you deduct expenses. The proposed 66.7% inclusion rate on gains over CAD 250,000 (Budget 2024) was never enacted — the inclusion rate is 50% for all gains. Canada requires the Adjusted Cost Base (ACB) method: a weighted average cost per unit for each cryptocurrency.
Whether you have capital gains (50% taxable) or business income (100% taxable) depends on factors like trading frequency, intent, and organisation. The CRA assesses each case individually.
What's taxable
Taxable vs non-taxable events in Canada
Taxable events
- Selling crypto for CAD or other fiat currency
- Crypto-to-crypto trades (a disposition at fair market value)
- Using crypto to pay for goods or services
- Gifting crypto to another person
- Staking and mining rewards (income when earned commercially; ACB set at FMV)
Not taxable
- Buying crypto with CAD and holding it
- Transferring crypto between your own wallets
- Moving crypto you own is not a disposition
Tax Forms
Forms you'll need to file
Report each crypto disposal: proceeds of disposition, adjusted cost base (ACB), outlays and expenses, and the resulting gain or loss. 50% of the net capital gain flows to line 12700 of your T1. Taxxy generates Schedule 3 with ACB applied.
Required if the total cost of your foreign property — including crypto held on foreign exchanges — exceeds CAD 100,000 at any time in the year. Late filing carries a penalty of CAD 25/day (up to CAD 2,500). Taxxy flags when the threshold is crossed.
Taxxy calculates ACB per cryptocurrency, applies the 50% inclusion rate, generates Schedule 3 figures for line 12700, and flags T1135 obligations when foreign holdings exceed CAD 100,000.
How it works
From transactions to tax report in 3 steps
Connect your exchanges
Link Coinbase, Kraken, Binance, Bitbuy, Newton, NDAX, Shakepay, and 50+ others via API or CSV. Taxxy imports your complete transaction history automatically.
Taxxy applies ACB + 50% inclusion
We build the Adjusted Cost Base per coin, convert every value to CAD at transaction time, apply the 50% inclusion rate, and flag business-income risk and T1135 obligations.
Download your Schedule 3
Get Schedule 3 figures ready for line 12700 of your T1, a T1135 summary if you cross the threshold, and a full transaction CSV for your accountant.
FAQ
Common questions about crypto tax in Canada
What is the 50% capital gains inclusion rate?
For capital gains treatment, only half of your net gain is taxable. If you realise CAD 10,000 of gains, CAD 5,000 is added to your income and taxed at your marginal rate. The 66.7% inclusion rate proposed in Budget 2024 for gains over CAD 250,000 was never enacted — 50% applies to all gains.
Capital gains or business income — which applies to me?
Most individual investors have capital gains (50% taxable). The CRA may treat you as carrying on a business (100% taxable) if you trade frequently, use sophisticated strategies, spend substantial time, or crypto is a primary income source. Each case is assessed individually. Taxxy flags high-frequency patterns that may indicate business income.
What cost basis method does Canada require?
Canada uses the Adjusted Cost Base (ACB) method — a weighted average cost per unit for each identical cryptocurrency, tracked separately per coin. This differs from FIFO. Taxxy computes ACB automatically across all your imported transactions.
Do I have to file Form T1135?
If the total cost of your specified foreign property — which can include crypto held on foreign exchanges — exceeds CAD 100,000 at any point in the year, you must file T1135 in addition to reporting gains on Schedule 3. Failure to file carries a penalty of CAD 25 per day up to CAD 2,500.
Are crypto-to-crypto trades taxable in Canada?
Yes. Trading one cryptocurrency for another is a disposition. You calculate the gain or loss in CAD using the fair market value at the time of the trade. The CRA explicitly confirms crypto-to-crypto trades are taxable, including DeFi swaps.
Ready to file your Canadian crypto taxes?
Import your exchanges, apply ACB and the 50% inclusion rate automatically, and get Schedule 3 figures ready for your T1. Free to start.
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