Crypto Tax Calculator
Estimate your crypto capital gains tax for any digital asset sale. Compare short-term vs long-term tax rates.
$
$
$
$
Crypto Tax Owed
$0
Capital Gain / Loss
—
Tax Rate
—
Net After Tax
—
ROI After Tax
—
Breakdown
Estimate only. Crypto tax includes all disposals — sells, trades, and spending. Staking rewards and mining income may be taxed as ordinary income when received. Consult a crypto-specialist tax professional for complex situations.
Advertisement
How Crypto Tax Works
The IRS treats cryptocurrency as property, not currency. Every sale, trade, or use of crypto to purchase goods or services is a taxable event subject to capital gains tax. The same short-term and long-term rules that apply to stocks apply to Bitcoin, Ethereum, and all other digital assets. For stock and investment gains, see our capital gains calculator.
- Every crypto transaction is potentially taxable. Selling crypto for USD, trading one crypto for another, and using crypto to buy goods or services are all taxable disposal events. Simply holding crypto is not taxable — only when you dispose of it does tax apply.
- Cost basis tracking is critical. Your taxable gain is proceeds minus cost basis (what you paid, including fees). FIFO (first in, first out) is the default method, but you can use specific identification to choose which coins you sell — allowing strategic selection of high-basis coins to minimize gains.
- Holding longer than one year cuts your tax rate significantly. Short-term crypto gains are taxed as ordinary income (up to 37%). Long-term gains are taxed at 0%, 15%, or 20%. On a $30,000 gain, the difference between short-term (22%) and long-term (15%) is $2,100 in tax.
- Crypto losses can offset gains and ordinary income. If you have unrealized losses in other crypto positions, realizing those losses can offset your gains. Up to $3,000 net loss can offset ordinary income annually. The wash-sale rule does not currently apply to crypto (though legislation may change this).
Advertisement
Frequently Asked Questions
Yes. The IRS treats crypto as property. Every sale, trade, or use of crypto to buy goods or services is a taxable event. Receiving crypto as income (mining, staking, airdrops, payment for services) is taxed as ordinary income at the fair market value when received. Simply holding crypto is not a taxable event.
Cost basis is what you paid for the crypto, including purchase price and transaction fees. When you sell, your taxable gain equals proceeds minus cost basis. If you bought Bitcoin at $20,000 and sold at $50,000, your gain is $30,000 (minus fees). Accurate cost basis records are essential and required for proper tax reporting.
Yes. The IRS requires reporting of all crypto transactions on Schedule D and Form 8949. The IRS asks about cryptocurrency on the front page of Form 1040. Failure to report crypto transactions is tax evasion. Many major exchanges now issue 1099 forms to the IRS and to users.
Yes. Capital losses offset capital gains dollar-for-dollar. Net capital losses above gains can offset up to $3,000 of ordinary income per year. Unused losses carry forward indefinitely. Unlike stocks, the wash-sale rule does not currently apply to crypto, so you can sell at a loss and immediately repurchase.
Yes. Trading one cryptocurrency for another is a taxable disposal event. When you trade Bitcoin for Ethereum, you are deemed to have sold the Bitcoin at its fair market value at the time of the trade, triggering a taxable gain or loss. This applies to all token swaps, DeFi transactions, and NFT purchases made with crypto.