How crypto is taxed in Canada (2026)
The CRA treats cryptocurrency as a commodity, not money. You trigger a taxable event whenever you dispose of crypto — selling it for dollars, trading one coin for another, or using it to buy something. The profit (proceeds minus what you paid) is normally a capital gain.
The 50% inclusion rate
Only half of a capital gain is taxable in Canada. That taxable half is added to your income for the year and taxed at your marginal rate; the other half is completely tax-free. (The proposed increase to a 66.67% inclusion rate above $250,000 was cancelled in 2025 and does not apply in 2026.)
Why your income matters
Because the taxable half stacks on top of your other income, your crypto gain is taxed at your marginal bracket. Someone earning $50,000 pays less on the same gain than someone earning $200,000. That's why this calculator asks for your other income and your province.
Capital losses
If you sell at a loss, you have a capital loss. It can offset capital gains in the current year, be carried back three years, or carried forward indefinitely — but it cannot reduce regular employment income.
Worked example: a $20,000 gain in Alberta
The calculator opens with crypto sold for $30,000 that cost $10,000, by someone with $80,000 of other income in Alberta.
- Capital gain: $30,000 − $10,000 = $20,000.
- Taxable portion (50%): $10,000, added to the $80,000 of other income.
- Tax on that extra $10,000 at Alberta's combined rates: about $3,050.
- You keep about $16,950 of the gain, an effective rate of about 15%.
Tax on a $10,000 gain, by province and income
Estimated 2026 tax on a $10,000 crypto capital gain ($5,000 taxable), stacked on top of other income:
| Province / territory | $50k income | $100k income | $200k income |
|---|---|---|---|
| Alberta | $1,100 | $1,525 | $2,100 |
| British Columbia | $1,075 | $1,530 | $2,290 |
| Manitoba | $1,338 | $1,895 | $2,320 |
| New Brunswick | $1,293 | $1,732 | $2,425 |
| Newfoundland & Labrador | $1,425 | $1,815 | $2,340 |
| Nova Scotia | $1,448 | $1,900 | $2,500 |
| Ontario | $998 | $1,574 | $2,548 |
| Prince Edward Island | $1,374 | $1,855 | $2,450 |
| Quebec | $1,317 | $1,806 | $2,498 |
| Saskatchewan | $1,234 | $1,650 | $2,175 |
| Northwest Territories | $1,049 | $1,455 | $2,153 |
| Nunavut | $900 | $1,375 | $2,025 |
| Yukon | $1,020 | $1,475 | $2,097 |
The same gain can cost less than $1,000 or more than $2,500 depending on where you live and what else you earn. Ontario is among the cheapest at $50,000 and among the most expensive at $200,000, because its surtax applies only at higher incomes.
Getting the cost basis right
The number most people get wrong is the cost. Canada uses the adjusted cost base (ACB), which is the average cost of all identical coins you hold, not the price of the specific coins you think you sold.
Example: you buy 1 ETH for $2,000, then another for $4,000. Your ACB is $3,000 per ETH. Sell one for $5,000 and your gain is $2,000, not $3,000 or $1,000. Trading fees add to your cost when you buy and reduce your proceeds when you sell. If you hold the same coin on several exchanges, the average covers all of them together. Enter the resulting total cost of what you sold in the "cost basis" field.
Does timing matter?
Sometimes, a little. Gains are taxed in the year you sell, at that year's marginal rate. Spreading a large sale over two tax years can keep part of it out of a higher bracket. For an Ontario resident earning $60,000, a $40,000 gain taken all in one year costs about $6,080. Split $20,000 per year, it's about $5,930. That's a modest saving, and it comes with the risk that the price moves in between. Bigger gains or incomes near a bracket edge benefit more. You can test both by running the calculator once per year.
For staking, mining, losses and record-keeping, see our full crypto tax in Canada guide.
Frequently asked questions
Do I owe tax if I only bought crypto and held it?
No. Simply buying and holding crypto is not taxable. Tax applies only when you dispose of it — sell, trade, or spend it.
Is trading one coin for another taxable?
Yes. Swapping, say, Bitcoin for Ethereum is a disposal of the Bitcoin at its fair market value in Canadian dollars, which can create a capital gain or loss.
What if I trade very frequently?
High-frequency or business-like trading can be taxed as business income (100% taxable) rather than capital gains. If that may be you, talk to a tax professional — this tool assumes capital-gains treatment.
How do I calculate my cost if I bought at different prices?
Canada uses the adjusted cost base: add up everything you paid for that coin, including fees, and divide by the number of coins you hold. Multiply that average by the amount you sold to get the cost to enter here.
Is crypto held in a TFSA taxed?
You cannot hold coins directly in a TFSA, but Canadian-listed crypto ETFs can be held in one. Gains on those inside a TFSA are not taxed, and gains inside an RRSP are deferred until withdrawal. This calculator is for crypto held outside registered accounts.