The Canada Revenue Agency (CRA) has clarified its tax treatment of cryptocurrency, classifying profits as either capital gains or business income.
For the 2025 tax year, the inclusion rate for capital gains is 50%. However, starting from January 1, 2026, this will increase to 66.67% for capital gains exceeding $250,000.
The CRA considers factors such as frequency and intent when determining if activity constitutes business income. This means that traders who frequently buy and sell cryptocurrency may be subject to higher tax rates.