In Canada, cryptocurrency is taxed as a commodity by the Canada Revenue Agency. That means most crypto transactions have tax consequences, and the rules are more specific than most traders expect.
What the CRA taxes
The CRA taxes crypto in two ways: capital gains and business income. Which applies depends on how you're using crypto.
Most retail traders fall under capital gains. You buy crypto, you sell it for more than you paid, and half of that gain is added to your taxable income for the year. The other 50% is exempt.
For example: you make $20,000 in capital gains from crypto in 2024. You add $10,000 to your taxable income. The tax you owe depends on your marginal rate.
Log in or sign up to connect your accounts and see the tax impact of your trades.
When crypto is not taxed
Not every crypto transaction triggers a tax event. These are exempt:
- Buying crypto with fiat (the purchase itself)
- Holding crypto without selling
- Donating crypto to a registered charity (this may also generate a tax receipt)
Capital gains vs business income
If your crypto activity looks like a business (regular trading, commercial intent, profit-driven strategy), the CRA may treat your gains as business income rather than capital gains. Business income is taxed at your full marginal rate, not the 50% inclusion rate.
Signs the CRA may view your activity as business income:
- You trade frequently with a clear commercial intent
- You operate in a businesslike way (business plan, tracking costs)
- You promote crypto products or services
- You carry out repetitive, systematic trading over time
If you're uncertain, speak to a tax professional.
The filing deadline
Most Canadians file their personal income tax return by April 30. Self-employed individuals have until June 15, but any tax owed is still due April 30.
How Summ helps
Summ connects to 3,500+ exchanges and wallets, applies the CRA's Adjusted Cost Basis method, and generates a tax report you can file, or hand to your accountant.
The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.
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