Do I pay tax on XRP in Canada or the US?

The full answer

This page sets out what the Canada Revenue Agency (CRA) and the US Internal Revenue Service (IRS) say, in their own words. It gives no personal tax advice; each agency’s pages, and a tax professional, are the places to settle an individual case.

What counts as a disposal in Canada?

The CRA says a disposition “may occur” when you “Trade or exchange it for government-issued currency or another type of crypto-asset,” “Use it to buy goods or services,” or “Transfer ownership of it by way of gift or donation.” It adds that the list “does not include all situations that result in a disposition.”[1] Exchanging XRP for another crypto-asset is on that list.

Is it a capital gain or business income in Canada?

A disposal’s result “may be considered business income (or loss) or a capital gain (or loss),” according to the CRA. Factors that “may indicate” a business include “Frequency of transactions,” “Period of ownership,” “Knowledge of crypto-asset markets,” “Time spent,” “Financing” and “Advertising.”[1] The CRA says this “must be determined on a case-by-case basis.”[1]

The two treatments tax different shares of the profit. For a capital gain, “you must include half of your capital gains (known as taxable capital gains) in your income for the year.” Half of capital losses can be deducted, “but only against your taxable capital gain,” and net capital losses can be carried back three years or forward indefinitely.[1] For business income, “you must report the full amount of your profits (or loss).”[1]

Records must be kept “for at least six years from the end of the last taxation year to which the records and books of account relate,” under CRA guidance.[2] The full list of records is on what records to keep for crypto taxes.

How is XRP taxed in the US?

The IRS says: “For U.S. tax purposes, digital assets are considered property, not currency.”[4] Exchanging digital assets for other property, including “other digital assets differing materially in kind or extent,” means “you will recognize a capital gain or loss,” the IRS FAQ says.[5]

Holding time sets the type of gain. Digital assets held “for one year or less” before selling or exchanging give a short-term gain or loss. Held “for more than one year,” they give a long-term one.[5]

Buying alone does not require a “Yes.” The IRS lets a taxpayer answer “No” to the digital assets question on a federal income tax return if they “Purchased, but did not sell, digital assets using U.S. or other real currency.”[4] How the gain is measured when XRP was bought at different times and prices is on working out cost basis on XRP. Income from yield and airdrops is discussed on how XRP yield and airdrops are taxed.

Is moving XRP between my own wallets taxable?

The two agencies word the rule differently. The CRA says: “Some transactions do not result in a taxable disposition, such as transfer of crypto-assets between wallets that you own.”[1] The IRS says a transfer between wallets, addresses or accounts that belong to you “is a non-taxable event, except to the extent of any digital assets you use, or are withheld, to pay for transaction services to effect the transfer.”[5]

Do superficial-loss and wash-sale rules apply to XRP?

The official pages read on September 29, 2026 do not settle it for either country. No CRA crypto page read that day mentions the superficial loss rule.

For the US, the Form 1099-DA instructions say “Losses from wash sales of tokenized securities must be reported,” and apply the rule to “tokenized securities treated as stock or securities under section 1091.”[7] No IRS page read on September 29, 2026 states whether XRP falls under section 1091. Anyone selling at a loss and buying back soon after should check the current rule with the agency or a tax professional.

What reporting is coming from platforms?

US brokers “must report gross proceeds for transactions effected on or after Jan. 1, 2025” and “must report basis on certain transactions effected on or after Jan. 1, 2026,” on Form 1099-DA.[4] The IRS says: “For 2025, the Form 1099-DA filing requirements generally apply to U.S. brokers,” so users of foreign exchanges “may not receive a Form 1099-DA,” but “Any taxable transactions using foreign brokers must still be reported.”[6] Holding XRP on a platform abroad is discussed on reporting XRP held on a foreign platform.

In Canada, Budget 2025 confirmed that the government intends to proceed with the “Crypto-Asset Reporting Framework,” subject to “a deferred application date of January 1, 2027.”[3] That date had not arrived as of September 29, 2026. How an ETF compares with holding XRP directly is on an XRP ETF versus owning XRP.

Where does the official guidance leave gaps?

Three gaps stand out in the pages read. The CRA says whether a holder is carrying on a business is decided case by case.[1] Neither agency’s pages read on September 29, 2026 answer the wash-sale or superficial-loss question for XRP. Users of foreign exchanges may not receive a Form 1099-DA, and the IRS says their taxable transactions must still be reported.[6]

The CRA pages cited here cover two points: crypto gains or losses may be business income or capital, decided case by case (page dated December 2, 2025), and books and records must be kept at least six years from the end of the last taxation year they relate to (page dated November 10, 2025). No public CRA guidance on theft or scam losses turned up in the pages cited here. The IRS position is set out on deducting crypto lost to a scam.