Crypto tax in Canada: the adjusted cost base (ACB), made simple

Crypto tax in Canada: what counts as a disposition, how the adjusted cost base works, the 50% inclusion rate and the records the CRA expects.

Last checked November 8, 2026. Every rule below names its source; the official pages are listed at the end with their own dates.

In short

Selling crypto, trading one crypto for another, spending it and giving it away are all dispositions.
A gain is a capital gain or business income, decided case by case; half of a capital gain is taxable.
Your ACB is the average cost of the units you hold, including fees to buy them.

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What counts as a disposition

The Canada Revenue Agency lists, among others: trading or exchanging a crypto-asset for government-issued money or another crypto-asset, using it to buy goods or services, and giving it away. Each one can create a gain or loss.

Capital gain or business income?

The CRA decides case by case. Its factors include how often you trade, how long you hold, your knowledge of the markets, the time you spend, whether you borrow to buy, and advertising. Business income is fully taxable.

For a capital gain, half is added to your income. The government cancelled the proposed increase of the inclusion rate to two-thirds on March 21, 2025.

The adjusted cost base

Your ACB is what the units cost, plus the costs to buy them. For identical property bought at different times, the CRA's capital gains guide (T4037) uses the average cost: after each purchase, the total cost divided by the units held.

Step	Units	Total cost (ACB)	ACB per unit
Buy 10 at $100, $5 fee	10	$1,005.00	$100.50
Buy 10 at $120, $5 fee	20	$2,210.00	$110.50
Sell 5 at $150, $5 fee: proceeds $745.00, cost of units sold 5 x $110.50 = $552.50	15	$1,657.50	$110.50

Capital gain on the sale: $745.00 - $552.50 = $192.50; at the 50% inclusion rate, $96.25 is added to income. Our capital gains calculator runs these rows for you.

Example only, with made-up prices.

Records to keep

The date and time, the number of units and the type of crypto-asset.
Its value in Canadian dollars at the time.
What the transaction was and who the other party was (even just their wallet address).
Your wallet addresses, and each wallet's balance and cost at the start and end of the year.
Receipts for accounting, legal and software costs.

Keep them for at least six years from the end of the last tax year they relate to.

Questions

Is trading one crypto for another taxable in Canada?

Yes. The CRA treats exchanging a crypto-asset for another crypto-asset as a disposition.

How much of a crypto capital gain is taxed?

Half of it is added to your income (the 50% inclusion rate); the planned increase to two-thirds was cancelled in March 2025.

How is ACB calculated for crypto?

Add the cost of the units and the fees to buy them; after each purchase, divide the total by the units held to get the average cost per unit.

How long do I keep crypto records?

At least six years from the end of the last tax year they relate to.

Sources

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Last checked November 8, 2026. General information only - not financial, legal, tax or real estate advice. Rules change: confirm with the official source or a licensed professional before you act.