Navigating Canadian Crypto Tax Brackets 2023: The Ultimate Guide

by
Brihasi Dey
Reviewed by
min read
Last updated:

Figuring out the right Canadian crypto tax bracket for your tax calculations can be tricky. Variable tax rates for different provinces only add to the complexity. This makes it important you understand the federal and provincial tax brackets, so you can track your exact tax liability and ensure a smooth tax filing experience.

In this guide, we will discuss all the Canadian crypto tax brackets for the tax years 2022 and 2023, helping you navigate this complex landscape with ease. 

What Are Canadian Tax Brackets?

Canadian tax bracket is the “income range” that decides the tax rate on your taxable income. The federal government and each province or territory have their own set of tax brackets, which are both applied to your taxable income.

Once you have figured out your taxable income (e.g. your income minus all deductions), calculate your federal income tax first and then your provincial tax. Add both of these taxes to find your total tax liability.

Types Of Canada Crypto Tax Rates 2023

To calculate the income tax, Canadian taxpayers need to know about two tax rates – the federal tax rate and the provincial tax rate. While the federal tax rate is a marginal tax rate constant for all Canadian taxpayers, your provincial tax rate depends on where you live.

Canada Income Tax Allowance

If you are employed and need to pay both federal and provincial tax, you can claim a deduction of up to $14398 of your taxable income, which will increase to $15000 from 2023. This is the allocated personal tax allowance by the CRA known as the basic personal amount (BPA).

When Do You Have To Pay Capital Gains Tax In Canada?

Any profits you make from disposing of your crypto are considered capital gains for individuals. You may be subject to capital gains taxes in the following disposal cases:

  • Selling your crypto for fiat
  • Trading your crypto for another crypto
  • Spending your crypto for purchasing goods or services
  • Gifting your crypto

The CRA explains that you do not have to pay taxes on 100% of your profits if you are an individual – you only pay tax on half of your net capital gains for a given tax year.

However, if the disposing of cryptocurrency is seen as part of a business by the CRA, the profits you make on the disposition or sale are considered business income and not capital gain.  

In this case, you have to pay taxes on 100% of your profits. The business income tax rate remains the same as the federal tax rate and provincial tax rate.

Some common business income examples include:

  • Mining crypto
  • Staking crypto for rewards
  • Trading your crypto

The capital gains or business income tax rate is the same as the federal tax rate and provincial and territorial tax rates

Canada Federal Tax Brackets 2023

Here are the federal tax rates in Canada for the tax years 2022 and 2023.

Canada Provincial Tax Brackets 2023

Each province and territory in Canada has its own tax brackets, which are combined with the federal tax brackets to calculate your overall tax rate. 

Let’s look at the tax brackets for each region in detail.

Nova Scotia Tax Brackets 2022 and 2023

Manitoba Tax Brackets 2022 and 2023

British Columbia BC Tax Brackets 2022

Alberta Tax Brackets 2022

Newfoundland & Labrador Tax Brackets 2022

New Brunswick Tax Brackets 2022 and 2023

Prince Edward Island Tax Brackets 2022

Saskatchewan Tax Brackets 2022

Nunavut Tax Brackets 2022 and 2023

Yukon Tax Brackets 2022

Ontario Tax Brackets 2022 and 2023

Northwest Territories Tax Brackets 2022

Quebec Tax Brackets 2022 and 2023

How To Calculate Your Crypto Taxes?

Taxes for all provinces and territories in Canada (except Quebec) are calculated the same way as the federal tax.

Form 428 is used to calculate your provincial or territorial tax. Provincial or territorial non-refundable tax credits are also calculated on Form 428. You can also easily calculate your crypto taxes using Kryptoskatt in just a few minutes.

All you need to do is connect your wallet to the platform – the app auto-syncs all your transaction history, auto-detecting the taxable events, the tax rates, and even any deductions that you can claim to save taxes. Once done, generate the tax report that you need to file your taxes as per the CRA. 

FAQs:

What is a tax bracket, and how does it apply to cryptocurrency gains and losses in Canada?

Canadian tax bracket is the “income range” that decides the tax rate on your taxable income. The federal government and each province or territory have their own set of tax brackets, which are both applied to your taxable income.

How do I determine which tax bracket I fall under as a Canadian crypto trader?

To determine your tax bracket as a Canadian crypto trader, calculate your total taxable income by adding all sources of income, including your capital gains from cryptocurrency trading and claiming all the deductions. Then, refer to the federal and provincial tax brackets to identify where your taxable income falls within the given ranges.

What are the different tax brackets for cryptocurrency traders in Canada, and how are they defined?

Cryptocurrency traders in Canada are subject to both federal and provincial tax brackets. Federal tax brackets range from 15% to 33%, while provincial tax brackets vary depending on the province or territory. These tax brackets are defined by income ranges, with higher tax rates applied as your income increases.

Are there any tax breaks available for Canadian cryptocurrency traders?

If you are employed and need to pay both federal and provincial tax, you get a personal tax allowance of up to $14398 of your taxable income, which will increase to $15000 from 2023. You can also offset their capital gains with capital losses incurred during the tax year.

What are the different tax brackets for cryptocurrency traders in Canada?

The tax brackets for cryptocurrency traders in Canada are the same as those for any other taxpayer. The federal tax brackets range from 15% to 33%, and provincial tax brackets vary depending on the province or territory of the crypto trader. These brackets are applied to the capital gains or business income from cryptocurrency trading to calculate the taxes.

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Navigating Canadian Crypto Tax Brackets 2023: The Ultimate Guide

By
Brihasi Dey
On

Figuring out the right Canadian crypto tax bracket for your tax calculations can be tricky. Variable tax rates for different provinces only add to the complexity. This makes it important you understand the federal and provincial tax brackets, so you can track your exact tax liability and ensure a smooth tax filing experience.

In this guide, we will discuss all the Canadian crypto tax brackets for the tax years 2022 and 2023, helping you navigate this complex landscape with ease. 

What Are Canadian Tax Brackets?

Canadian tax bracket is the “income range” that decides the tax rate on your taxable income. The federal government and each province or territory have their own set of tax brackets, which are both applied to your taxable income.

Once you have figured out your taxable income (e.g. your income minus all deductions), calculate your federal income tax first and then your provincial tax. Add both of these taxes to find your total tax liability.

Types Of Canada Crypto Tax Rates 2023

To calculate the income tax, Canadian taxpayers need to know about two tax rates – the federal tax rate and the provincial tax rate. While the federal tax rate is a marginal tax rate constant for all Canadian taxpayers, your provincial tax rate depends on where you live.

Canada Income Tax Allowance

If you are employed and need to pay both federal and provincial tax, you can claim a deduction of up to $14398 of your taxable income, which will increase to $15000 from 2023. This is the allocated personal tax allowance by the CRA known as the basic personal amount (BPA).

When Do You Have To Pay Capital Gains Tax In Canada?

Any profits you make from disposing of your crypto are considered capital gains for individuals. You may be subject to capital gains taxes in the following disposal cases:

  • Selling your crypto for fiat
  • Trading your crypto for another crypto
  • Spending your crypto for purchasing goods or services
  • Gifting your crypto

The CRA explains that you do not have to pay taxes on 100% of your profits if you are an individual – you only pay tax on half of your net capital gains for a given tax year.

However, if the disposing of cryptocurrency is seen as part of a business by the CRA, the profits you make on the disposition or sale are considered business income and not capital gain.  

In this case, you have to pay taxes on 100% of your profits. The business income tax rate remains the same as the federal tax rate and provincial tax rate.

Some common business income examples include:

  • Mining crypto
  • Staking crypto for rewards
  • Trading your crypto

The capital gains or business income tax rate is the same as the federal tax rate and provincial and territorial tax rates

Canada Federal Tax Brackets 2023

Here are the federal tax rates in Canada for the tax years 2022 and 2023.

Canada Provincial Tax Brackets 2023

Each province and territory in Canada has its own tax brackets, which are combined with the federal tax brackets to calculate your overall tax rate. 

Let’s look at the tax brackets for each region in detail.

Nova Scotia Tax Brackets 2022 and 2023

Manitoba Tax Brackets 2022 and 2023

British Columbia BC Tax Brackets 2022

Alberta Tax Brackets 2022

Newfoundland & Labrador Tax Brackets 2022

New Brunswick Tax Brackets 2022 and 2023

Prince Edward Island Tax Brackets 2022

Saskatchewan Tax Brackets 2022

Nunavut Tax Brackets 2022 and 2023

Yukon Tax Brackets 2022

Ontario Tax Brackets 2022 and 2023

Northwest Territories Tax Brackets 2022

Quebec Tax Brackets 2022 and 2023

How To Calculate Your Crypto Taxes?

Taxes for all provinces and territories in Canada (except Quebec) are calculated the same way as the federal tax.

Form 428 is used to calculate your provincial or territorial tax. Provincial or territorial non-refundable tax credits are also calculated on Form 428. You can also easily calculate your crypto taxes using Kryptoskatt in just a few minutes.

All you need to do is connect your wallet to the platform – the app auto-syncs all your transaction history, auto-detecting the taxable events, the tax rates, and even any deductions that you can claim to save taxes. Once done, generate the tax report that you need to file your taxes as per the CRA. 

FAQs:

What is a tax bracket, and how does it apply to cryptocurrency gains and losses in Canada?

Canadian tax bracket is the “income range” that decides the tax rate on your taxable income. The federal government and each province or territory have their own set of tax brackets, which are both applied to your taxable income.

How do I determine which tax bracket I fall under as a Canadian crypto trader?

To determine your tax bracket as a Canadian crypto trader, calculate your total taxable income by adding all sources of income, including your capital gains from cryptocurrency trading and claiming all the deductions. Then, refer to the federal and provincial tax brackets to identify where your taxable income falls within the given ranges.

What are the different tax brackets for cryptocurrency traders in Canada, and how are they defined?

Cryptocurrency traders in Canada are subject to both federal and provincial tax brackets. Federal tax brackets range from 15% to 33%, while provincial tax brackets vary depending on the province or territory. These tax brackets are defined by income ranges, with higher tax rates applied as your income increases.

Are there any tax breaks available for Canadian cryptocurrency traders?

If you are employed and need to pay both federal and provincial tax, you get a personal tax allowance of up to $14398 of your taxable income, which will increase to $15000 from 2023. You can also offset their capital gains with capital losses incurred during the tax year.

What are the different tax brackets for cryptocurrency traders in Canada?

The tax brackets for cryptocurrency traders in Canada are the same as those for any other taxpayer. The federal tax brackets range from 15% to 33%, and provincial tax brackets vary depending on the province or territory of the crypto trader. These brackets are applied to the capital gains or business income from cryptocurrency trading to calculate the taxes.

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