How does selling NFTs affect my taxes?
Selling or otherwise disposing of a non-fungible token (NFT) can result in business income or a capital gain. The answer depends on why you bought or created the NFT and how you carried out the activity. The CRA may consider how often you traded, how long you held the NFT, how much time and knowledge you used, whether you advertised, and whether you planned to make a profit. Even one sale can count as business income.
NFT transactions on account of capital
If you held the NFT as an investment, calculate the gain or loss by subtracting what it cost you, including related purchase costs, and any selling costs from the sale proceeds. For example, if you sold it for $500, it cost $300, and there were no selling costs, your capital gain would be $200. For 2025, $100 of that gain is taxable.
To report a capital disposition in TurboTax Online:
If you're a Québec resident, open Tax profile. Answer Yes to Did you own, acquire, or dispose of (sell, transfer, exchange, give) any cryptoassets in 2025?
Select 2025 tax return in the left menu. On the Tax Home screen, under Add to your return, enter capital in the search bar and select Capital gains and capital gains deduction.
If Capital Gains Information appears, select Continue.
At Your Capital Gains Profile for 2025, select the option for property you sold, including cryptoassets, then select Continue.
At Capital Gains, add or edit the disposition. For Type of capital property disposed of, select Cryptoassets: non-fungible tokens (NFTs). Enter the proceeds, adjusted cost base, and applicable outlays and expenses, then select Continue.
NFT transactions on account of business
Report the profit or loss as business income if you created or bought NFTs as a business or with a business-like plan to resell them for profit. This can apply even to one transaction. Report your sales and eligible business expenses so TurboTax can calculate the profit or loss.
To report NFT business income in TurboTax Online:
Select 2025 tax return in the left menu. On the Tax Home screen, under Add to your return, enter self-employment in the search bar and select Self-employment.
At Your Self-Employment or Business Summary, select Enter New Business for [your name].
At What category is your self-employment work?, select Business, choose the province or territory where the business was located, then select Continue.
Complete the business-profile questions.
At [your name], what was your self-employment income?, enter the applicable revenue and other income. Answer Yes to Was any of this income earned from cryptoassets?, select Non-fungible tokens (NFTs), then select Continue.
Complete the remaining income and expense questions. TurboTax notes that a separate T2125 is required for each type of cryptoasset.
If you're a Québec resident, also complete the required cryptoasset question in Tax profile.
NFT royalties
NFT royalties aren't always investment income. Where you report them depends on how you earned them:
If the royalties are part of your NFT business, include them in the applicable business income.
If the royalties are for your work or invention and aren't business income, report them as other employment income. If they appear in box 17 of a T5 slip, enter the T5 slip in TurboTax.
Report other royalties as investment income.
For a line 12100 NFT royalty that wasn't reported on a slip:
Select 2025 tax return in the left menu. On the Tax Home screen, under Add to your return, enter interest in the search bar and select Interest on bank accounts not reported on a T-slip.
At Interest and Other Investment Income - Summary, enter the amount beside Non-fungible tokens (NFTs), then select Continue.
The original NFT sale must still be reported separately as business income or a capital disposition, as applicable. See the CRA's Reporting income from cryptoasset transactions guidance.
