Canada Crypto & Forex Tax 2026: 50% Inclusion Rate, Business Income Risk

Canada includes 50% of your capital gains in taxable income, rising to 66.7% on annual gains above CAD 250,000. Crypto is treated as a commodity, but frequent trading can turn profits into business income taxed at 100%.

The 50% Inclusion Rate

Only 50% of your net capital gains is added to taxable income. On annual gains above CAD 250,000, the inclusion rate rises to 66.7%.

• 50% inclusion on capital gains up to CAD 250,000 per year.
• 66.7% inclusion on the portion above CAD 250,000.
• Capital losses offset only capital gains.

Commodity Treatment and Business Income Risk

The CRA treats crypto as a commodity. Disposing of it — selling, swapping or spending — triggers capital gains or losses at fair market value.

Frequent trading flips the classification: day-trading style activity is business income, taxed at 100% with no inclusion-rate relief.

What Changed in 2026

• The 66.7% inclusion rate applies above CAD 250,000 of annual gains.
• The CRA requests transaction data from crypto exchanges.
• Filing is due 30 April 2026 on the T1 return.

Losses and Filing on the T1 Return

Capital losses offset capital gains only — they cannot reduce employment or business income, but unused amounts can carry back or forward under CRA rules. File by 30 April 2026 on the T1 return, reporting gains and losses on Schedule 3.

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