Everything Canadians need to know about reporting cryptocurrency to the CRA for the 2025 tax year. All key claims are cited to official government sources.
This guide is for informational purposes only. It does not constitute tax or legal advice. Always consult a qualified CPA for your specific situation.
The CRA treats cryptocurrency as a commodity under the Income Tax Act — not legal currency.[1] Buying and holding is NOT taxable. Tax is only triggered when you dispose of crypto: by selling, trading, spending, or gifting it.[2]
The proposed hike to 66.67% was formally cancelled by Prime Minister Mark Carney on March 21, 2025.[3] The inclusion rate remains 50% for the 2025 tax year. Nothing changed for the average Canadian crypto investor.
Swapping Bitcoin for Ethereum — even without touching CAD — is a taxable disposal.[2] You must calculate the fair market value in CAD at the time of the trade and report any gain or loss.
The most important distinction in Canadian crypto tax. Your profits are taxed very differently depending on how the CRA classifies your activity.[2]
Report on Schedule 3 of your T1.[4] For casual investors who buy, hold, and occasionally sell. Example: $10,000 gain → only $5,000 added to taxable income.
Report on Form T2125.[2] Applies to frequent traders, commercial miners, and anyone whose crypto activity resembles a business.
Unlike the US (FIFO, LIFO, HIFO), Canada requires the Adjusted Cost Base (ACB) method.[10] Your ACB is the average cost of each coin you own, updated with every purchase.
| Date | Action | BTC | Price (CAD) | Your ACB/BTC |
|---|---|---|---|---|
| Jan 2025 | Buy | 0.1 BTC | $50,000 | $50,000 |
| Apr 2025 | Buy | 0.1 BTC | $80,000 | $65,000 (average) |
| Oct 2025 | Sell | 0.1 BTC | $120,000 | Gain = $55,000 → $27,500 taxable |
If you sell crypto at a loss and repurchase the same crypto within 30 days before or after the sale, the CRA denies the loss.[11] The denied loss is added to the ACB of your repurchased coins, deferring — not eliminating — the loss.
Canada uses progressive marginal tax rates.[5] Only 50% of your capital gain is added to taxable income. The basic personal amount for 2025 is $16,129 — income below this is not taxed federally.[6]
The Crypto-Asset Reporting Framework (CARF) took effect January 1, 2026.[9] Canadian exchanges must now report user transaction data to the CRA, with first filings expected in 2027. The CRA has a dedicated crypto audit team that has recovered over $100M in unpaid taxes. Keep records of every transaction — date, CAD value, amount, fees — for at least 6 years.
With CARF, the CRA will cross-reference your filings against exchange-reported data starting in 2027. Exchanges registered in Canada are already required to report transactions over $10,000 CAD to FINTRAC.[7]
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This guide is for general informational purposes only based on CRA guidance as of April 2026. It does not constitute tax, legal, or financial advice. Tax laws change and individual circumstances vary significantly. Always verify information directly with the CRA and consult a qualified CPA for your specific situation.
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