What is the capital gains inclusion rate for crypto in 2026?

For the 2026 tax year, the capital gains inclusion rate is 50% for individuals on the first $250,000 of capital gains. Gains exceeding $250,000 are included at 66.67%. If your crypto activity is classified as business income, 100% is taxable.

Are crypto-to-crypto trades taxable?

Yes. The CRA considers every crypto-to-crypto trade (e.g., exchanging Bitcoin for Ethereum) as a taxable disposition. You must calculate the capital gain or loss based on the fair market value in Canadian dollars on the date of each transaction.

Credible Canadian Crypto
Tax Information from Canada's Leading Expert in Digital Asset Taxation

Q: How does the CRA track crypto?

The CRA uses multiple methods including data-sharing agreements with Canadian exchanges, the new CARF (Crypto-Asset Reporting Framework) effective January 2026, blockchain analysis tools, and voluntary disclosures. Starting in 2026, Canadian crypto exchanges must report all customer transactions directly to the CRA.

Tax can be a difficult and confusing topic, particularly in the ever evolving legal and regulatory landscape of digital assets. Although there is a lot of information out there, distinguishing the good information from the bad without guidance from a trained expert is a daunting task. Even those individuals who are trained find it difficult to keep up with the novel regulatory landscape related to cryptocurrency.

What the podcast covers

What you will learn

Canadian crypto capital gains tax rules, business income vs. capital gains classification, DeFi and NFT taxation, crypto mining tax implications, CRA reporting requirements and CARF 2026, and voluntary disclosure programs.

Who is this for?

Crypto investors in Canada, tax professionals and accountants, anyone who has received a CRA audit notice, and DeFi/NFT traders who are unsure about their obligations.

Frequenty Asked Questions

Yes. The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity. Profits from selling, trading, or spending crypto are taxable as either capital gains (50% inclusion rate) or business income (100% taxable), depending on your individual circumstances and trading activity.

The CRA uses multiple methods to track cryptocurrency activity: data-sharing agreements with Canadian exchanges, the new CARF (Crypto-Asset Reporting Framework) effective January 2026, blockchain analysis tools, third-party data matching, and tips from voluntary disclosures. Starting in 2026, Canadian crypto exchanges must report all customer transactions directly to the CRA.

For the 2026 tax year, the capital gains inclusion rate is 50% for individuals on the first $250,000 of capital gains. Gains exceeding $250,000 in a year are included at the higher rate of 66.67%. If your crypto activity is classified as business income rather than capital gains, 100% of the income is taxable.

Yes. The CRA considers every crypto-to-crypto trade (for example, exchanging Bitcoin for Ethereum) as a taxable disposition event. You must calculate the capital gain or loss at the time of each trade based on the fair market value in Canadian dollars on the date of the transaction.

That's why we are here.

Aaron Grinhaus, LLB., J.D., LL.M. (Tax) has been in the crypto space for over 10 years, and has done it all as an investor, professional advisor and academic. He published the world's first textbook on Blockchain Law, served as co-director of Osgoode Law School's prestigious Certificate Program in Web3 law, and is an adjunct professor of International Tax at Osgoode Hall Law School.

The purpose of the Cryptax Podcast is to provide legitimate information from a recognized expert that Canadians can use to better understand the Canadian digital asset tax landscape. The goal is to help identify relevant issues and plan activities with a better understanding of the potential consequences.

The purpose of the podcast is not to provide legal advice, but instead provide a high-level overview of the digital asset tax landscape in Canada and help narrow down the problems and consequences that may arise from various activities related to crypto holding and investing.

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Tax is very fact specific, and so if you are looking to set up a structure or engage in significant digital asset related activities
it is important that you consult with a trained and licensed professional.

Credible Canadian Crypto Tax Information from Canada's Leading Expert in Digital Asset Taxation