Bitcoin Tax in Canada
Half of a capital gain on bitcoin held as an investment is taxable at your normal rates. Selling, trading crypto for crypto, spending it or giving it away is a disposal. If your activity amounts to a business, the whole profit can be taxed as business income.
Facts checked 26 October 2026 · Not financial, legal or tax advice
At a glance
| What you sell | How the gain is taxed | Notes |
|---|---|---|
| Bitcoin and other crypto (investment) | 50% of the gain taxable. | Crypto-to-crypto trades are disposals. |
How bitcoin gains are taxed
- Disposing of crypto includes selling it, trading it for another crypto, using it to buy goods or services and giving it away.
- Held as an investment, half of the gain is taxable; if the activity is a business (for example buying to resell at a profit), the profit can be fully taxable.
- The CRA generally accepts the fair market value at the time of a trade.
Reporting
- Report capital gains and losses on Schedule 3 of your T1 return; crypto goes in the section for bonds, debentures, crypto-assets and similar property (guide T4037).
Losses
- Half of a capital loss can be deducted, but only against taxable capital gains, not other income.
- Unused net capital losses can be carried back three years or forward indefinitely.
- The superficial loss rule denies a loss if you, or an affiliated person, buy the same property within 30 days before or after the sale and still hold it 30 days after.
Bitcoin Tax in Canada: FAQ
How is bitcoin taxed in Canada?
If you hold it as an investment, half of any capital gain is added to your income and taxed at your normal rates. If your crypto activity is a business, the whole profit can be taxed as business income.
Is trading one crypto for another taxable in Canada?
Yes. The CRA treats trading or exchanging crypto, including for another crypto-asset, as a disposal.
Sources (4)
General information about the rules for individual investors, checked October 2026. Tax depends on your circumstances and residence; check with the tax authority or an adviser. Not tax advice.