Crypto Tax Calculator — United States 2026 (IRS Capital Gains Rules)
Estimate US crypto tax with USD proceeds, cost basis, IRS digital-asset reporting, short-term versus long-term gains, and crypto income assumptions.
Sold crypto? Work out what you owe the IRS.
United States Crypto Tax Notes
US crypto tax commonly separates short-term gains, long-term gains, and ordinary income from mining, staking, or rewards.
There is no percentage discount for long holding in the US system — instead, assets held more than one year qualify for the lower 0/15/20% long-term rates, and IRS digital-asset reporting (the Form 1040 question, Form 8949, and Form 1099-DA) applies.
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 CPA or enrolled agent for personalized 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 2026 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 $49,450 of total taxable income, 15% up to $545,500, and 20% above. Married-filing-jointly thresholds are $98,900 and $613,700. A 3.8% NIIT can also apply above $200k/$250k MAGI.
Losses offset capital gains first; up to $3,000 of net loss ($1,500 if married filing separately) can then offset ordinary income each year, with the remainder carried forward indefinitely. The wash-sale rule does not currently apply to crypto, though Congress has repeatedly proposed extending it.
Many crypto transactions that feel like “not selling” are actually taxable 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 capital gains) in the year received, at market value on the date of receipt. When you later sell the rewarded tokens, that is a capital-gains event — with cost basis 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 basis 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. Keep records for at least three years after filing — six if income is substantially understated — and until well after assets you still hold are sold and reported.
Where you have multiple purchases of the same asset, you can use FIFO (first in first out) or specific identification. The method must be consistent. Most crypto tax software defaults to FIFO — check which method your tax professional 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 for gross proceeds, with cost-basis reporting phasing in from 2026 — the IRS gets a copy, so omitting gains is high-risk.
IRS rules — cost basis, 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.
2026 long-term capital-gains rates (by total taxable income)
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | up to $49,450 | up to $98,900 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 |
| 20% | over $545,500 | over $613,700 |
Short-term gains (held one year or less) are instead taxed at your ordinary 2026 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 capital gains tax under IRS rules
| Transaction type | Tax treatment |
|---|---|
| Sell crypto for USD | Taxable — standard disposal |
| Crypto-to-crypto swap | Taxable — disposal of the crypto given up at market value |
| Buy goods/services with crypto | Taxable — disposal at market value on date of use |
| Gift crypto | Generally not taxable to the giver; recipient takes your basis and holding period |
| Staking rewards received | Ordinary income (not capital gains) at market value |
| Mining rewards received | Ordinary income at market value on receipt |
| Airdrop received | Generally ordinary income at market value |
| Lost or stolen | Generally not deductible — personal casualty/theft losses are limited to declared disasters |
| Transfer between own wallets | Not a taxable 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 basis)
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 property. Every disposal — selling, swapping, or spending — is a taxable event, and staking and mining rewards are ordinary income. The IRS receives data from US exchanges (including Form 1099-DA) 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 (2026 single filers: 0% up to $49,450, 15% to $545,500, 20% above). 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 gain or loss on the first asset, then your cost basis 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 taxed at their USD market value on the date you received them. When you later sell those rewards, you will also have a capital gain or loss based on the difference between the receipt value and sale price.
Can I offset crypto losses against my salary?
Yes, up to a limit. Capital losses first offset capital gains. If losses exceed gains, up to $3,000 of the net loss per year ($1,500 if married filing separately) can be deducted against ordinary income such as salary or wages, and any remainder carries forward indefinitely to future years.
Where these figures come from
Every threshold and tax rate on this page is taken from the Internal Revenue Service (IRS) — the source of record for US federal income tax and the tax treatment of digital assets.
- Digital asset tax rules — IRS — Digital assets.
- Capital gains and losses (0/15/20% rates, $3,000 loss limit) — IRS — Topic 409, Capital gains and losses.
- 2026 federal brackets and long-term capital-gains thresholds — IRS — Rev. Proc. 2025-32.
- Reporting disposals (Form 8949 & Schedule D) — IRS — About Form 8949.
- Broker reporting of digital assets — IRS — About Form 1099-DA.
- Net Investment Income Tax (3.8%) — IRS — Net Investment Income Tax.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.