Canada NFT Taxes 2026 – CRA Rules for Collectors, Traders & Creators
The CRA has not issued specific NFT guidance, but general tax principles clearly apply. Here is how NFTs are taxed in Canada for collectors, flippers, and creators.
CRA Treatment of NFTs
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Start for free →The Canada Revenue Agency treats NFTs as property – similar to other cryptocurrencies. The tax outcome depends on whether your NFT activity is classified as:
- Capital gains: If you hold NFTs as investments (50% inclusion rate)
- Business income: If you buy/sell NFTs as a regular commercial activity (100% taxable)
Buying NFTs
Purchasing an NFT with cryptocurrency (e.g., ETH) is a taxable disposition of that cryptocurrency. You must calculate your gain or loss on the ETH used to purchase:
Gain on ETH = FMV of NFT (in CAD) − ACB of ETH spent
Your new cost basis for the NFT = FMV in CAD at time of purchase.
Selling NFTs
Selling an NFT triggers a capital gain or loss:
Gain = Sale proceeds (in CAD) − Cost basis of NFT
If sold for ETH or another crypto, the proceeds = FMV of crypto received in CAD at time of sale.
NFT Creators and Royalties
Creating and selling NFTs is generally treated as business income by the CRA – the full amount is taxable. Ongoing royalties from secondary sales are also business income.
Creators may deduct: creation costs (gas fees, software, artist fees), platform fees, and marketing expenses.
GST/HST on NFT Sales
If you are registered for GST/HST and sell NFTs in the course of a commercial activity, you may need to charge and remit GST/HST. This is a complex area – consult a tax professional if your NFT sales exceed $30,000/year.
NFT Record-Keeping
- Save all transaction hashes for NFT purchases and sales
- Record CAD value at time of each transaction
- Document gas fees paid (these adjust your ACB/proceeds)
- Keep records for 6+ years (CRA's normal reassessment period)
Related Resources
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Start for free →Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.