Bitcoin & cryptocurrency tax overview
Capital Gains Tax
Only 50% of capital gains are included in taxable income for individuals (the inclusion rate). Gains are taxed at the individual's marginal income tax rate. Note: a proposed increase to 2/3 inclusion rate above CAD 250,000 was announced but not passed into law as of January 2026.
Income Tax
Mining rewards, staking income, and crypto received as payment for goods or services are treated as business or employment income and taxed at the individual's full marginal rate, ranging from 20.5% to 33% federally plus provincial tax.
VAT / GST
Exempt. The CRA treats cryptocurrency as a commodity, not currency. Buying or selling crypto itself is generally not subject to GST/HST, though GST/HST may apply to goods or services purchased with crypto.
Mining Tax
Miners operating as a business report mining income as business income at fair market value when received. Business expenses may be deducted. Casual or hobby miners may also face income tax on receipts. Subsequent disposal triggers capital gains rules.
In Canada, the CRA treats cryptocurrency as a commodity. Profits from selling crypto are subject to capital gains tax, with only 50% of the gain included in taxable income at the individual's marginal rate. Income from mining, staking, or receiving crypto as payment is fully taxable as business or employment income. There is no GST/HST on buying or selling cryptocurrency itself.
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This information is for general reference only and should not be considered tax advice. Tax laws change frequently and may vary based on individual circumstances, residency status, and transaction type. Always consult a qualified tax professional in your jurisdiction before making financial decisions based on this information.