Crypto Tax Calculator — United States 2025 (IRS CGT Rules)
Sold crypto? Work out what you owe the tax office.
Estimate US crypto tax with USD proceeds, cost basis, IRS digital-asset reporting, short-term versus long-term gains, and crypto income assumptions.
United States Crypto Tax Notes
US crypto tax commonly separates short-term gains, long-term gains, and ordinary income from mining, staking, or rewards.
This version avoids Australian CGT-discount wording and keeps IRS digital-asset reporting language visible for US users.
US setup: this crypto tax is tuned for dollar-denominated scenarios, American payroll and tax references, state-by-state cost differences, and the finance terms people see in lender, employer, or IRS-facing documents.
The page keeps US language in place where it is relevant, including IRS, federal withholding, FICA, 401(k), sales tax, miles, APR, down payment, paycheck, state tax, and USD totals.
Treat the answer as a United States estimate; before acting, compare it with provider disclosures, state rules, federal guidance, lender underwriting, payroll settings, or advice from a qualified professional.
Estimates only. Not financial or tax advice. Consult a registered tax agent for personalised advice.
Select the topic most relevant to your situation.
The IRS treats cryptocurrency as property, not currency. Every disposal is a taxable event. Gains held one year or less are short-term (taxed as ordinary income); gains held more than a year are long-term (0%, 15%, or 20%). There is no 50% discount.
Any event that results in you no longer holding the cryptocurrency: selling for USD, swapping for another crypto, spending it on goods/services, or losing access permanently. Each disposal is a separate taxable event requiring calculation.
Capital gain = proceeds − cost basis. Cost basis includes the purchase price plus any fees (exchange fees, gas fees, brokerage). For swaps, the “proceeds” figure is the fair market value of the crypto received on the day of the swap.
Short-term gains stack on your ordinary income at 10–37%. Long-term gains use the 0/15/20% brackets based on your total taxable income, plus a 3.8% Net Investment Income Tax above $200k ($250k joint) MAGI. The calculator models this in Standard mode.
The holding period decides the rate. Held one year or less, gains are short-term and taxed as ordinary income (10–37%). Held more than a year, gains are long-term and taxed at 0%, 15%, or 20%. There is no 50% discount — the full gain is taxable either way.
Counted from the day after acquisition to the day of disposal. Taxed at your ordinary 2025 federal rate — 10, 12, 22, 24, 32, 35, or 37% — stacked on top of your other income.
Single filers pay 0% on long-term gains up to $48,350 of total taxable income, 15% up to $533,400, and 20% above. Married-filing-jointly thresholds are $96,700 and $600,050. A 3.8% NIIT can also apply above $200k/$250k MAGI.
Losses offset capital gains first; up to $3,000 of net loss can then offset ordinary income each year, with the remainder carried forward indefinitely. The wash-sale rule does not currently apply to crypto.
Many crypto transactions that feel like “not selling” are actually CGT events under IRS rules. Each one requires a separate calculation.
Swapping BTC for ETH is a disposal of BTC at market value on the day of the swap, and an acquisition of ETH at the same value. Both legs are recorded. The 12-month clock restarts for the ETH received.
Staking rewards and mining income are ordinary income (not CGT) in the year received, at market value on the date of receipt. When you later sell the rewarded tokens, that is a CGT event — with cost base equal to the value when received.
Spending crypto on goods/services is a taxable disposal at fair market value. Gifting crypto is generally not taxable to the giver (the annual gift-tax exclusion applies); the recipient inherits your cost basis and holding period.
The IRS requires you to keep records for every crypto transaction. Failure to keep adequate records makes it impossible to calculate your true cost base and may result in assessments based on the full sale price.
Date of each transaction, USD value at time of transaction (not today’s value), exchange records and confirmations, wallet addresses involved, and any fees paid. Records must be kept for 5 years after the disposal.
Where you have multiple purchases of the same asset, you can use FIFO (first in first out), specific identification, or other methods. The method must be consistent. Most crypto tax software defaults to FIFO — check which method your tax agent uses.
Report each disposal on Form 8949 and summarize on Schedule D; staking/mining income goes on Schedule 1 or Schedule C. Form 1040 also asks a digital-asset question. From 2025, exchanges issue Form 1099-DA — the IRS gets a copy, so omitting gains is high-risk.
IRS rules — cost base, disposal, and tax calculation
The capital gains formula
Capital gain = proceeds − cost basis. Cost basis includes the original purchase price plus any fees (exchange fees, gas fees, brokerage). The full gain is taxable — there is no 50% discount. Short-term gains use ordinary rates; long-term gains use the 0/15/20% brackets. Tax = taxable gain × the applicable rate.
2025 long-term capital-gains rates (by total taxable income)
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | up to $48,350 | up to $96,700 |
| 15% | $48,351 – $533,400 | $96,701 – $600,050 |
| 20% | over $533,400 | over $600,050 |
Short-term gains (held one year or less) are instead taxed at your ordinary 2025 federal rate: 10%, 12%, 22%, 24%, 32%, 35%, or 37%. A 3.8% Net Investment Income Tax applies to gains once your MAGI exceeds $200,000 (single) or $250,000 (joint).
How the one-year holding period changes your tax rate
Qualifying for long-term rates
You qualify for long-term treatment by holding the crypto for more than one year (more than 12 months) before disposal, counted from the day after acquisition to the day of disposal. There is no 50% discount — the full gain is taxable, but at the lower 0/15/20% long-term rates rather than ordinary rates.
Long-term vs short-term on a $10,000 gain (single, $80,000 income)
| Holding period | Tax on $10,000 gain |
|---|---|
| Long-term (>1 year, 15% rate) | $1,500 |
| Short-term (≤1 year, 22% ordinary rate) | $2,200 |
All crypto transactions that trigger CGT under IRS rules
| Transaction type | CGT treatment |
|---|---|
| Sell crypto for USD | CGT event — standard disposal |
| Crypto-to-crypto swap | CGT event on the crypto given up at market value |
| Buy goods/services with crypto | CGT event at market value on date of use |
| Gift crypto | CGT event for donor at market value on gift date |
| Staking rewards received | Ordinary income (not CGT) at market value |
| Mining rewards received | Ordinary income at market value on receipt |
| Airdrop received | Generally ordinary income at market value |
| Lost or stolen | Possible capital loss if ownership permanently lost |
| Transfer between own wallets | NOT a CGT event — no disposal |
What records The IRS requires and how to maintain them
Required records for each transaction
- Date of acquisition and disposal
- USD value at time of each transaction (not current value)
- Exchange statements or transaction confirmations
- Wallet addresses for both parties (where applicable)
- Any fees paid (these reduce your capital gain or form part of cost base)
How long to keep records
The IRS generally has 3 years to audit a return (6 years if income is substantially understated). Keep transaction records for at least that long after filing — and for assets still held, keep acquisition records until well after the eventual sale is reported.
Crypto tax software
Koinly, CoinTracker, and CryptoTaxCalculator.io are commonly used by US crypto investors. They import exchange API data and produce IRS-compatible reports. Using software reduces errors significantly, particularly for high-volume traders or DeFi participants with complex transaction histories.
❓ Frequently asked Frequently asked questions
Do I have to pay tax on crypto in the United States?
Yes. The IRS treats cryptocurrency as a capital asset. Every disposal (sale, swap, spending, gifting) is a CGT event. Staking and mining rewards are ordinary income. The IRS receives data from US exchanges and actively matches it against tax returns.
What is the long-term capital gains rate for crypto?
If you hold crypto for more than one year before selling, the gain is long-term and taxed at 0%, 15%, or 20% depending on your total taxable income (single filers: 0% up to $48,350, 15% to $533,400, 20% above). There is no 50% discount — the full gain is taxable, just at these lower rates instead of ordinary rates.
Is swapping one crypto for another a taxable event?
Yes. The IRS treats a crypto-to-crypto swap as a disposal of the first asset at market value on the date of the swap. You calculate the CGT on the first asset, then your cost base for the second asset is its market value on the date you received it.
Are staking rewards taxable in the United States?
Yes — as ordinary income, not capital gains. Staking and mining rewards are assessed at their USD market value on the date you received them. When you later sell those rewards, you will also have a CGT event based on the difference between the receipt value and sale price.
Can I offset crypto losses against my salary?
No. Capital losses can only offset capital gains — either in the same year or carried forward to future years. They cannot be applied to reduce ordinary income such as salary, wages, or business income. The losses carry forward indefinitely with no expiry.
Where these figures come from
Every threshold and tax rate on this page is taken from the US Taxation Office (IRS) — the source of record for US income tax, FICA tax, student loan/HELP repayment, and capital gains tax.
- Individual income tax rates (2025, Stage 3) — IRS — Individual income tax rates.
- FICA tax & surcharge — IRS — FICA tax.
- student loan/HELP repayment thresholds — IRS — Study and training support loans.
- Capital gains tax rules — IRS — Capital gains tax.
- GST rules — IRS — GST.
- Tax credits & deductions — IRS — tax deductions.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.