Crypto Tax Calculator
Calculate capital gains tax on cryptocurrency trades, plus tax on mining, staking, and payment income. Includes NIIT, short-term vs long-term comparison, and tax-loss harvesting analysis.
Capital Gains / Loss
Crypto Income (Optional)
Total Estimated Crypto Tax
$2,250
on $15,000 in crypto gains + income
Tax Breakdown
Long-term (preferential rates)
Long-term rate: 15%
Short-Term vs Long-Term Comparison
Short-Term Rate
22%
Tax: $3,300
Long-Term Rate
15%
Tax: $2,250
Your Rate
Holding over 1 year saves 7 percentage points -- that is $1,050 on this trade.
Form 1040 Digital Asset Question
The IRS requires all taxpayers to answer whether they received, sold, exchanged, or disposed of any digital assets during the tax year. This question appears at the top of Form 1040. You must answer "Yes" even if you only received crypto as a gift or payment.
Important Note
The IRS treats cryptocurrency as property, not currency. Every sale, trade, or exchange is a taxable event. Transferring crypto between your own wallets is not taxable, but crypto-to-crypto trades are.
How Cryptocurrency is Taxed
Taxed as Property
The IRS classifies crypto as property (IRS Notice 2014-21). Every sale, trade, or use to purchase goods triggers capital gains tax, just like selling stocks.
Short vs Long-Term
Hold for 1 year or less: taxed at ordinary income rates (up to 37%). Hold over 1 year: preferential long-term rates (0%, 15%, or 20%).
Mining & Staking
Crypto received from mining or staking is taxable as ordinary income at fair market value when received. Business mining also owes self-employment tax.
Taxable vs Non-Taxable Crypto Events
Taxable Events
- Selling crypto for fiat currency (USD, EUR, etc.)
- Trading one crypto for another (e.g., BTC to ETH)
- Using crypto to pay for goods or services
- Receiving crypto as payment, mining, or staking rewards
- Airdrops and hard forks (when you receive new tokens)
- DeFi yields, liquidity pool rewards, NFT sales
Non-Taxable Events
- Buying crypto with fiat currency
- Transferring crypto between your own wallets
- Gifting crypto (up to $19,000 per recipient in 2026)
- Donating crypto to a qualified charity
- Holding crypto without selling (unrealized gains)
Official References
This calculator uses current IRS rules for cryptocurrency taxation:
- IRS Notice 2014-21 - Virtual Currency Guidance
Foundational IRS guidance treating crypto as property for tax purposes
- IRS Form 8949 - Sales and Dispositions of Capital Assets
Form for reporting crypto sales, trades, and dispositions
- IRS Schedule D (Form 1040) - Capital Gains and Losses
Summary form for capital gains and losses from Form 8949
- IRC Section 1001 - Determination of Amount and Recognition of Gain or Loss
Tax code section governing gain/loss recognition on property dispositions
This calculator provides estimates. Your actual tax liability may vary. Consult a tax professional for personalized advice. Tax rates and brackets accurate as of January 2026.