Crypto Tax Calculator

Cryptocurrency is treated as property by the IRS. Selling, trading, or spending crypto triggers a taxable event. Short-term gains (held less than 12 months) are taxed as ordinary income at rates up to 37%. Long-term gains (held over 12 months) are taxed at preferential rates of 0%, 15%, or 20% depending on your income. Losses can offset gains.

Generally no — simply holding cryptocurrency is not a taxable event. You only owe taxes when you realize a gain by selling, trading for another crypto, or spending. However, earning crypto through mining, staking rewards, or airdrops is taxable as income when received, regardless of whether you sell.

Short-term capital gains apply to crypto held for 12 months or less and are taxed at your ordinary income tax rate (10-37%). Long-term capital gains apply to crypto held for more than 12 months and benefit from lower rates (0%, 15%, or 20%). Holding longer can save you thousands in taxes.

Report crypto transactions on Form 8949 and Schedule D. Starting in 2026, you may receive Form 1099-DA from exchanges reporting your transactions. However, 1099-DA may show $0 cost basis for transferred assets — you still need to track your actual cost basis. Use crypto tax software to automate this process.

Yes — hold positions for over 12 months for lower long-term rates, harvest tax losses to offset gains (crypto is not subject to wash sale rules for spot trades as of 2026), use specific identification to choose which tax lots to sell, maximize deductions, and consider tax-advantaged accounts for crypto exposure.