Tax on Gold in Canada: Capital Gains, Jewellery, Gifts

Key takeaways

A gain on gold is usually a capital gain. As of October 2026, half of the gain (the inclusion rate of one-half) is added to your income.
The 2024 plan to raise the inclusion rate to two-thirds was cancelled on March 21, 2025.
Jewellery is “listed personal property”: the $1,000 rule applies, and its losses can only offset gains on similar items.
Gold you owned when you moved to Canada is treated as bought at its fair market value on the day you became a resident. Keep proof of that value.
Giving gold to someone other than your spouse counts as selling it at fair market value. Receiving a gift or inheritance is generally not taxed.

How is gold taxed when you sell it in Canada?

Canada does not have a special gold tax. When you sell gold bars, coins, jewellery or a gold ETF, the Canada Revenue Agency (CRA) usually treats the profit as a capital gain.

Start with what you got for it (the proceeds of disposition).
Subtract what it cost you (the adjusted cost base, or ACB) and the costs of selling, such as a dealer commission.
The result is your capital gain or loss.
Only the taxable part is added to your income. Your normal tax rate then applies.

The inclusion rate is one-half. In 2024 the federal government proposed raising it to two-thirds for gains above $250,000 a year. The CRA went back to administering the one-half rate in 2025, and on March 21, 2025 the Prime Minister announced that the increase was cancelled. As of October 2026, half of a capital gain is taxable.

Example (round numbers): you bought a 1 oz gold coin for $3,000 and sell it for $5,000. Your gain is $2,000. Half of it, $1,000, is added to your income for that year.

One exception: if you buy and sell gold often as a business, the CRA can treat your profit as business income, which is fully taxed. The CRA guide says the facts of each transaction decide which it is.

Is gold jewellery taxed differently from gold bars?

Yes. The CRA puts jewellery in a group called listed personal property (LPP), together with art, rare books, stamps and coins. LPP is a type of personal-use property, and three rules apply:

The $1,000 rule. If an item cost less than $1,000, its cost is treated as $1,000. If you sell it for less than $1,000, the price is treated as $1,000. If both the cost and the price are $1,000 or less, there is no gain or loss and you do not report it on Schedule 3.
Losses are ring-fenced. A loss on LPP can only reduce gains on other LPP. It cannot reduce gains on shares or bullion.
Carry losses back or forward. An unused LPP loss can be carried back 3 years or forward 7 years against LPP gains.

Gold bars and bullion coins bought as an investment are not things you use and enjoy, so they are usually treated as ordinary capital property. The $1,000 rule is not meant for them. If you are unsure which group an item falls into, ask a tax professional.

For more on why jewellery and bullion behave differently, see jewellery vs investment gold.

What about gold I brought when I moved to Canada?

This is the most important rule for newcomers. The CRA says that if you owned certain property when you immigrated, such as jewellery, you are treated as having sold it and bought it back at its fair market value on the date you became a resident of Canada.

That value becomes your cost. Only the rise in value after you arrived is a Canadian capital gain.

Example (round numbers): your wedding set was worth $5,000 on the day you became a resident. Years later you sell it for $6,500. Your gain is $1,500, and half of it, $750, is taxable. The price your family paid years ago in India or Pakistan does not matter.

Keep proof of the value on your arrival date:

A list of each piece with its weight and karat.
An appraisal or a dated receipt, if you have one.
The gold price per gram on that date, from a published rate, saved as a screenshot or printout.

Jewellery you hold for personal use is excluded from foreign property reporting on Form T1135. Gold bullion or other investments held outside Canada can count toward the T1135 rule, which applies when the total cost of your foreign property is more than $100,000 at any time in the year. Use the T1135 checker if you keep other assets abroad. To bring jewellery through the airport, read bringing gold jewellery into Canada.

Is gold received as a gift or inheritance taxed?

Receiving gold. The CRA says you do not report most gifts and inheritances as income. Your cost for the gold is generally its fair market value on the date you receive it. For inherited property, your cost equals the amount the person who died was treated as receiving, which is usually the value just before death. Write that value down; you will need it when you sell.

Giving gold. If you are a Canadian resident and give gold to a child, sibling or friend, the CRA treats it as a sale at fair market value on the day you give it. If it has gone up since you got it, you report the gain.

Giving gold to your spouse or common-law partner. The gift normally moves at your cost, so there is no gain at that time. If your spouse later sells it, the gain is usually reported by you while you are still together.

For gifts of money from abroad, see is gifted money taxable in Canada.

Can you legally reduce capital gains tax on gold?

There is no special exemption for gold. These legal options are built into the rules:

Use a TFSA. Gains inside a Tax-Free Savings Account are not taxed. Gold ETFs and some bullion can be held there. See gold in a TFSA or RRSP.
Use your arrival value. Newcomers only pay on growth after they became resident, if they can show the value on that date.
Offset losses. Capital losses on bullion or ETFs can reduce capital gains. LPP losses only offset LPP gains.
Count the selling costs. Commissions and similar costs of selling reduce your gain.

Not reporting a sale is not one of them. See how much gold you can sell without reporting it.

How do you report a gold sale on your tax return?

Report the sale on Schedule 3 of your return for the year you sold. Jewellery goes in the listed personal property part. Bullion and ETFs go with other capital property. The taxable amount ends up on line 12700.

Before you sell, work out what the gold is worth by weight and karat with the gold value calculator, and compare it with today’s gold price by karat. If this is your first return in Canada, start with filing your first tax return.

General information, not tax advice. Rules were checked on October 24, 2026. A tax professional should confirm how they apply to you.

Common questions

Do I have to pay tax when I sell gold in Canada?

Only if you make a gain. Half of a capital gain is added to your income as of October 2026. If you sell at a loss, there is no tax, though losses on jewellery can only offset gains on similar items.

Is there capital gains tax on gold jewellery in Canada?

Yes, if you sell it for more than its cost. Jewellery is listed personal property, so items that cost and sell for $1,000 or less do not need to be reported.

What is the cost of gold I brought to Canada as a newcomer?

The CRA treats it as bought at its fair market value on the date you became a resident. Keep a dated record of that value.

Is inherited gold taxable in Canada?

Receiving an inheritance is generally not taxed as income. When you later sell the gold, you pay tax on the gain above its value when you received it.

Did the capital gains inclusion rate go up to two-thirds?

No. The increase proposed in 2024 was cancelled on March 21, 2025. The rate is one-half as of October 2026.

Sources

Checked against these sources on October 24, 2026. Spotted something out of date? Tell us.

How gold is taxed in Canada: capital gains, jewellery, gifts and gold you brought with you