Gold tax in Canada: GST/HST and capital gains

Canada's gold tax rules turn on one number, 99.5%, and one question, whether you are investing or trading. This guide explains both in plain language, using the Canada Revenue Agency's (CRA) own guidance and the law it applies. It is general information, not tax advice; a CPA can apply it to your circumstances.

Do you pay GST or HST when you buy gold?

Not on pure bullion. Section 123(1) of the Excise Tax Act defines a "precious metal", and the CRA explains how it applies in GST/HST Memorandum 17-1, updated in July 2026:

• Paragraph 29: a precious metal is "a bar, ingot, coin or wafer that is composed of gold, silver or platinum", refined to at least 99.5% for gold and platinum (99.9% for silver).
• Paragraph 30: bars, ingots and wafers must generally be "recognized and accepted for trading on Canadian financial markets", usually with purity and refiner marks. For coins, "only those metals at the required purity levels that have been issued by a government authority" and that may be used as currency qualify.
• Paragraph 31: any supply of a qualifying precious metal is a financial service, which is generally exempt from GST/HST.
• Paragraph 34: the first sale by the refiner is zero-rated under Schedule VI, Part IX; later sales are exempt.

Zero-rated and exempt both mean you pay no GST/HST on the price. The difference matters to the dealer (whether it can reclaim tax on its own costs), not to you. The GST/HST rule is federal, so it applies in every province; Quebec buyers should also check how the QST treats the item.

Source: CRA GST/HST Memorandum 17-1, paragraphs 29 to 34. Products at 99.5%+ also have to meet the form and recognition tests; ask the dealer how it treats an unusual item.

Why are 22 karat coins taxable in Canada?

Because the law tests purity, not the amount of gold. A 1 oz Krugerrand or American Gold Eagle contains a full troy ounce of gold, alloyed with copper (and silver in the Eagle) to make it harder. That brings the coin's purity to 91.67%, below the 99.5% threshold. Paragraph 32 of the memorandum says gold that does not meet the definition "is not considered a supply or purchase of a financial instrument, but rather a supply or purchase of property", so GST/HST applies like any other purchase.

The cost is not small. The CRA's rate table lists 13% HST in Ontario, 14% in Nova Scotia (from April 1, 2025), 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 5% GST in Alberta and the territories. British Columbia, Manitoba, Saskatchewan and Quebec charge 5% GST plus their own provincial tax rules. This is the reverse of the UK, where the 22 karat Sovereign is the tax-favoured coin. Canadians who want to avoid sales tax usually stick to 24 karat products such as the Maple Leaf rather than the Krugerrand.

How is gold taxed when you sell?

If you hold gold as an investment, selling it for more than you paid usually creates a capital gain. Only part of the gain is taxed. The CRA says it "has reverted to administering the currently enacted capital gains inclusion rate of one-half", and its guidance for corporations adds that the proposed increase to two-thirds "was cancelled". Half the gain (the "taxable capital gain") is added to your income and taxed at your marginal federal and provincial rates.

The gain is your proceeds minus your adjusted cost base (ACB) and selling costs. The CRA defines ACB as "usually the cost of a property plus any expenses to acquire it, such as commissions and legal fees." For gold, that is generally the full invoice price, including the premium and any GST/HST you paid on a taxable coin. Selling costs ("outlays and expenses") such as a dealer's commission reduce the gain. You report the sale on Schedule 3 and the taxable amount on line 12700 of your return.

There is no holding period in Canada: the one-half inclusion applies whether you held the gold for a week or 20 years, as long as the gain is on capital account. Capital losses can offset capital gains in the same year, and unused net capital losses can be carried back three years or forward indefinitely, according to the CRA's capital losses guidance.

Coins are on the CRA's list of "listed personal property", alongside jewellery, stamps and art, which has its own rule that losses can only be set against gains on the same type of property. The CRA does not spell out whether ordinary bullion coins and bars fall into this category, so if you have a loss on gold, ask an adviser how it should be reported.

Is your gold profit a capital gain or business income?

The T4037 guide says: "When you dispose of a property, you need to determine if the transaction is a capital transaction or an income transaction," and "the facts surrounding the transaction determine the nature of the gain or loss." It refers readers to the CRA's interpretation bulletins IT-479R (transactions in securities, income versus capital) and IT-459 (adventure or concern in the nature of trade). Unlike Canadian shares, there is no election to treat gold automatically as capital property.

Simplified summary of CRA guidance. The CRA looks at the facts of each case; there is no fixed number of trades that makes it a business.

Worked example: Maple Leafs vs Krugerrands in Ontario

An illustration with round numbers, not live prices. Today's spot price is ... per ounce (Loading).

Two Ontario residents each spend CA$55,000 before tax on ten 1 oz coins. Investor A buys Gold Maple Leafs; Investor B buys Krugerrands. Several years later, each sells the ten coins to a dealer for CA$65,000. Both are investors, not traders, and both have a combined federal and Ontario marginal rate of 30% (an assumed rate for the example).

Assumes equal buy and sell prices for both coins, HST included in ACB, no selling costs and no other gains or losses. If Investor A's activity were treated as business income, the full $10,000 would be taxable ($3,000 at 30%).

The HST paid by Investor B is partly recovered through a smaller taxable gain, but most of it is simply lost. That is why Canadian bullion buyers compare products on a tax-included basis. Our October 2026 Canadian premium report and guide to buying gold in Canada compare dealers, and our guide to selling gold in Canada covers buyback prices.

Can gold go in an RRSP or TFSA?

Yes, but not the coins in your drawer. Section 4900 of the Income Tax Regulations sets the qualified investment rules used for registered plans. It allows:

• Coins (paragraph t): gold legal tender bullion coins of at least 995 fineness, produced by the Royal Canadian Mint, worth no more than 110% of their gold value, and bought directly from the Mint or from a regulated Canadian bank, trust company, credit union, insurer or registered securities dealer.
• Bars (paragraph u): gold bars, ingots or wafers of at least 995 fineness from a refiner on the LBMA good delivery list, hallmarked with the refiner's mark, fineness and weight, bought from the refiner or a qualifying institution.
• Certificates (paragraph v): certificates issued by the Royal Canadian Mint or a qualifying institution representing such metal.

Inside an RRSP, gains are not taxed until you withdraw (when withdrawals are taxed as income); inside a TFSA, qualifying gains are not taxed. Storage and plan fees apply. See our guide to gold in an RRSP or TFSA.

What records should you keep?

• Every purchase invoice, showing the product, purity, quantity, price and any GST/HST.
• Every sale receipt and any commission charged.
• Bank or payment records.
• For inherited gold, the value at the date of death used on the deceased's final return.

Keep your purchase records for as long as you own the gold and for at least six years after the end of the tax year in which you sell it, in line with the CRA's general record-keeping guidance. Dealers also keep records: under FINTRAC rules, dealers in precious metals must report receiving CA$10,000 or more in cash in a single transaction and verify identity for certain transactions.

Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.