Crypto Capital Losses in Canada: 50% and Carryback
17 October 2026 · en-CA · Educational information · No affiliate links
Educational information only. Not tax, legal or investment advice. We are not the CRA and are not affiliated with it. Check canada.ca and consider a qualified Canadian tax professional. Sources read October 17, 2026. Anything marked expected should be re-checked (re-check planned December 1, 2026). Examples use made-up numbers. This page contains no affiliate links.
Short answer: The CRA says that for capital property you deduct half of your capital losses (allowable capital losses), only against taxable capital gains, not against employment or other income. Unused allowable losses become a net capital loss that can be carried back three years or forward indefinitely. The CRA page says the inclusion rate for 2025 is 50%.
How it works (CRA example, 2025 figures)
In 2025 you realize a $450 gain (taxable $225) and a $750 loss (allowable $375). After applying the allowable loss, $150 is unapplied and becomes part of your 2025 net capital loss; it can be applied to 2022, 2023 and 2024 taxable gains or to future years.
Forms
- Schedule 3 reports capital gains and losses and updates the CRA's record of your net capital loss.
- Form T1A (Request for Loss Carryback), Part 5, applies a net capital loss to earlier years; the CRA says do not file an amended return for the year you apply it to.
- Net capital losses of other years are claimed on line 25300 (earlier-year losses first).
Crypto-specific points (CRA crypto page)
- Example: swapping crypto B (ACB $25,000) for crypto A worth $20,600 is a $4,400 capital loss, $2,200 allowable at 50%.
- If you are carrying on a business, results are business income or loss, not capital (trader or investor).
For 2026
The CRA page's figures are for tax year 2025. A 50% inclusion rate and a three-year carryback (2023 to 2025 for a 2026 loss) are expected to apply for 2026 on the same wording, but the CRA's 2026 page isn't published in what we read.
Related
FAQ
Can I deduct a crypto loss from my salary? Per the CRA, no; only against taxable capital gains.
Does carrying a loss back change net income? The CRA says net income used for credits and benefits doesn't change.
What we could not verify
- The inclusion rate and carryback years for 2026 (expected, not read).
- Rules for losses incurred before 1990 or other legacy inclusion rates (not relevant here).
- Provincial treatment, including Quebec.
- Any proposed future change to the inclusion rate.
Sources (official)
- CRA, Capital losses (page modified February 5, 2026 per our researcher's check; examples refer to tax year 2025) — https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions.html (read in full October 17, 2026)
- CRA, Reporting income from crypto-asset transactions — https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide/income-crypto-transactions.html (read in full October 17, 2026; the page's modified date was reported as December 3, 2025 by our researcher)