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Crypto Tax Calculator

Calculate capital gains tax on cryptocurrency trades. Track short-term vs long-term gains and estimate your tax liability.

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How the IRS Taxes Cryptocurrency

The IRS treats cryptocurrency as property, not currency (IRS Notice 2014-21). Every sale, trade, or exchange — including swapping one crypto for another — is a taxable event. Starting in 2025, crypto exchanges (Coinbase, Kraken, etc.) are required to issue 1099 forms reporting your transactions to the IRS, making underreporting increasingly risky.

Short-term gains (held under 12 months) are taxed as ordinary income at your marginal rate (10-37%). Long-term gains (held 12+ months) qualify for preferential rates: 0%, 15%, or 20% depending on income. The Net Investment Income Tax (NIIT) of 3.8% applies if your modified AGI exceeds $200,000. Losses are deductible: they offset gains dollar-for-dollar, with up to $3,000 in excess losses deductible against ordinary income. Unused losses carry forward indefinitely.

Crypto Tax Strategies

Tax-loss harvesting: Sell losing positions to realize losses that offset gains. Unlike stocks, crypto is NOT subject to the wash sale rule (as of 2025) — you can immediately repurchase the same asset after selling at a loss. Hold for 12+ months to qualify for long-term rates (saving 10-20% in tax). Donate appreciated crypto: Donating crypto held 12+ months to a 501(c)(3) lets you deduct the full market value without paying capital gains. Use specific identification: Choose which specific coins to sell (highest-cost-basis first) to minimize gains. File your overall taxes with our 1099 Tax Calculator.

People Also Ask

Do I owe taxes if I just hold crypto?
No — simply holding (HODLing) is not a taxable event. You only owe tax when you sell, trade, spend, or exchange crypto.
Is swapping one crypto for another taxable?
Yes — trading Bitcoin for Ethereum, or any crypto-to-crypto exchange, is a taxable event. You realize a gain or loss on the asset you traded away.
What about crypto I received as payment?
Crypto received as income (wages, freelance, mining, staking) is taxed as ordinary income at the fair market value when received. This also establishes your cost basis for future sale.
Do I need to report crypto on my tax return?
Yes. Form 1040 directly asks: "At any time during the year, did you receive, sell, exchange, or otherwise dispose of any digital assets?" Answering "No" when you should answer "Yes" is a federal offense.