Crypto Mining Taxes in Canada 2026 – CRA Rules for Miners

Mining crypto in Canada triggers complex tax obligations. Whether you mine as a hobby or a business changes everything about how you report income.

Hobby Mining vs. Business Mining

The CRA distinguishes between hobby mining and business mining based on:

• Scale of operation (number of rigs, hash rate)
• Intent to profit
• Regularity and continuity of activity
• Whether you have a business plan

Hobby mining: Income reported as "other income" – no deductions for expenses
Business mining: Reported on T2125 – full expense deductions allowed

Business Mining: Taxable Income

When you mine a block and receive cryptocurrency rewards, the fair market value in CAD at the time of receipt is your business income. This is 100% taxable (unlike capital gains which have a 50% inclusion rate).

Deductible Mining Expenses

• Electricity costs (often the largest expense)
• Mining hardware (ASIC miners, GPUs) – via Capital Cost Allowance (CCA)
• Cooling equipment
• Hosting/colocation fees
• Mining pool fees
• Internet connection (business portion)
• Home office (if mining from home)
• Accounting and tax preparation fees

Capital Cost Allowance (CCA) for Equipment

Mining hardware is a capital asset. Instead of deducting the full cost in year one, you claim CCA over multiple years. ASICs typically fall under Class 10 (30% declining balance) or Class 12 (100% first year for some equipment). Consult a tax advisor for current CCA classes.

GST/HST for Miners

If your mining business earns over $30,000 per year, you must register for GST/HST. The sale of mined cryptocurrency is generally treated as a taxable supply. However, GST/HST rules for crypto are complex – consult a professional.

Capital Gains on Selling Mined Coins

When you later sell mined cryptocurrency, you have a second taxable event:

• Your cost basis = fair market value when mined (already reported as income)
• Capital gain/loss = sale proceeds − cost basis
• This gain is subject to the 50% (or 2/3 above $250k) inclusion rate

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.