This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade or use any services.
Crypto tax software programs make it easier to record your cryptocurrency transactions, track any capital gains or losses and report them to the Canadian Revenue Agency (CRA). To help you manage your tax obligations, we’ve compared a range of options to find the best crypto tax software programs in Canada.
Koinly Crypto Tax Reporting
| Supported exchanges | Supports all major exchanges |
|---|
CoinLedger Crypto Tax Reporting
| Supported exchanges | Supports all major exchanges |
|---|
Coinpanda Crypto Tax Reporting
| Supported exchanges | Supports all major exchanges |
|---|---|
| Free Plan Available? | 25 transactions |
CryptoTaxCalculator Cryptocurrency Tax Reporting
| Supported exchanges | Supports all major exchanges |
|---|
CoinTracking Crypto Tax Reporting
| Supported exchanges | Supports all major exchanges |
|---|
TokenTax
| Supported exchanges | All exchanges and wallets |
|---|
Crypto tax software helps you keep a record of crypto transactions and calculates the capital gain or loss when your crypto assets are sold, exchanged, given away or traded.
The best crypto software in Canada integrates with the exchange you use to manage your cryptocurrency. It automatically grabs and records details of your transactions when you execute an exchange or trade.
Most crypto tax software gives you the option to manually import your data. You can export your transactional data from your crypto exchange platform as a CSV file. This file can then be imported into your chosen crypto tax software.
Most crypto software programs also keep track of your transactions in a way that’s suitable for CRA forms and Canadian tax reporting. They can automatically fill in your tax forms at the end of the tax year, making sure you pay the correct tax that’s due, in line with Canadian crypto tax rules.
It’s important to research a range of crypto tax software to compare the pros and cons of each option. The best crypto tax software for Canadians depends on your specific needs. To help, consider the following:
Some platforms like Koinly and ZenLedger offer free basic services for crypto investors who make under 10,000 transactions a year. To get a more comprehensive service, you’ll need to pay an annual fee. It could be worth it to save you a massive headache at the end of a tax year.
Other platforms like CoinLedger don’t have free plans and charge yearly subscriptions depending on your level of transactions.
Most crypto tax software in Canada lets you integrate your account with a range of crypto platforms and automatically import the relevant tax data. If you’re interested in one that isn’t compatible with your crypto platform, check that you can manually import CSV data.
Working out your tax liability is the bread and butter of good crypto tax software. You’ll want to try to minimize your tax liability and maximize profitability where possible. For example, pooling crypto assets to work out your tax liability. This could reduce your tax liability by offsetting gains and losses for similar crypto assets.
Most Canadian crypto tax software can help you complete the necessary tax forms at the end of the tax year. Remember, in Canada, you need to report capital gains or losses on relevant tax forms.
Crypto tax software doesn’t currently integrate directly with the CRA, but the best platforms will help you automatically fill in your tax forms.
Investors need to be aware of their obligations. The CRA is now more proactive in reviewing anyone who may have crypto tax liabilities. At this point in time, the CRA requires several crypto platforms, including Coinbase, to provide documentation on investor gains and losses. It’s quite likely that the CRA will ask all major crypto platforms to share customer information, at some point in the future.
Most platforms provide detailed information on their security features, like 256-bit encryption and employee vetting.
Check out online customer reviews to see if the crypto tax company you’re considering has a good reputation. You can also search Google to see if a company has had any recent breaches or hacks.
Many tax software companies offer 24-hour support and live chat. They also provide online guides and resources to help you understand more about how crypto tax works.
Crypto tax software should help you simplify keeping records and submitting tax forms for your crypto investments. Here are some of the advantages of using crypto tax software:
It appears Canadians are still not sure about the cryptocurrency marketplace. According to the latest data from the Finder: Consumer Sentiment Tracker Q2 2023, only 7.00% of respondents thought that now — April to June 2023 — was a good time to invest in cryptocurrency. This lack of confidence in crypto as an investment asset has not changed much in 2023, given that 7.00% of Canadians, who were asked the same question in the Finder: Consumer Sentiment Tracker Q1 2023 survey, also did not consider January to March to be a good time to invest in crypto.
Crypto-focused tax software might not be best for every type of investor or trader. Beginners may be able to make use of standard tax software, while trained professionals can be helpful for heavy investors.
We considered a wide range of factors before choosing the best crypto tax software for Canadian investors. When pouring over each platform, we looked at:
Using crypto tax software can help simplify keeping records of your crypto asset transactions. It will keep secure records of all your crypto transactions by integrating directly with your crypto trading platform.
It will also save you a headache at the end of the tax year when you need to fill in your tax return. That’s because you’ll be able to automatically fill in the required CRA forms. You can also rest easy that you’re complying with all the complicated rules on crypto tax.
The results of the Finder: Consumer Sentiment Tracker Q1 were collected through an online Pollfish survey conducted between December 2022 and January 2023. In the survey, 1,846 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3%, with a 99% confidence level.
The results of the Finder: Consumer Sentiment Tracker Q2 were collected through an online Pollfish survey conducted between April 27 to 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3.08%, 19 out of 20 times.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.