In Canada, when you sell cryptocurrency for a profit, the CRA taxes only 50% of your capital gain (as of 2026). This means if you made $10,000 profit selling Bitcoin, you'd report $5,000 as taxable capital gain. Your tax bill depends on your marginal tax rate, which varies by province and income level. Use our Capital Gains Tax Calculator to estimate your exact tax owing based on your province and total income. The capital gains inclusion rate is a core rule for Canadian crypto investors. Here's how it works: - You calculate your adjusted cost basis (ACB) by averaging the price you paid for each cryptocurrency unit - You subtract this ACB from your selling price to find your capital gain - You multiply that gain by 50% to get your taxable capital gain - You add this taxable amount to your other income and pay tax at your marginal rate For example, if you bought 1 Bitcoin at $30,000 and sold it at $50,000, your capital gain is $20,000. The taxable portion is $10,000 (50% of $20,000). If your marginal tax rate is 40%, you owe $4,000 in tax. The ACB method is the CRA-approved standard for crypto investors.
Yes. There is no minimum reporting threshold in Canada. Even small trades must be reported on your tax return if they result in a capital gain. The CRA expects complete disclosure of all crypto transactions.
Contact your exchange or wallet provider for transaction history. If records are unavailable, the CRA may ask you to provide a reasonable estimate based on historical pricing data. Keeping records is your responsibility, so do this immediately.
Yes. The 50% federal inclusion rate applies nationwide. However, provincial tax rates vary, so your total tax bill depends on which province you live in. Use the marginal tax rate calculator for your province.
Yes. Capital gains and capital losses from any source (stocks, real estate, crypto) can be combined. If you have stock losses, you can use them to offset crypto gains.
You use a weighted average of all purchases. Add the total cost of all units (including fees) and divide by total units owned to get your average cost per unit. Recalculate after each new purchase.