Crypto Tax Calculator for US Investors

The IRS classifies cryptocurrency as property under IRS Notice 2014-21, not as currency. This means every sale, trade, or spending of crypto is a taxable disposal subject to capital gains tax. Crypto received through mining, staking, airdrops, or as salary is taxed as ordinary income at your applicable federal income tax rate on the day of receipt.

Holding crypto for more than one year qualifies gains for the 0%, 15%, or 20% rates. Selling at a loss offsets gains and up to $3,000 of ordinary income each year. Donating crypto held for more than one year to a qualified charity generally allows a fair market value deduction. Crypto held one year or less is limited to the lower of basis or fair market value.

There is no crypto-specific tax-free cash-out amount, but long-term capital gains can fall into the 0% federal tax bracket. For tax year 2026, if your total taxable income, including the gain, stays below $49,450 as a single filer or $98,900 filing jointly, crypto held for more than a year may be taxed at 0%. Short-term gains and ordinary crypto income, such as staking, mining and airdrops, are taxed at your regular income tax rate from the first dollar.

Increasingly, yes. Brokers have reported digital asset sales on Form 1099-DA since the 2025 tax year. Form 1040 also asks every filer a yes-or-no digital asset question. You must answer it even with no crypto activity. You must report every taxable sale, whether or not you receive a 1099-DA.s

Failing to report crypto can result in back taxes, interest, and penalties. The IRS may charge failure-to-file and failure-to-pay penalties, while intentional omissions can lead to a civil fraud penalty of up to 75% of the unpaid tax. Starting in 2026, Form 1099-DA broker reporting also gives the IRS an independent record of exchange activity to cross-check against your return.

Form 1099-DA is the IRS form brokers use to report digital asset sales. Brokers first issued it for 2025 sales, reporting gross proceeds only. For 2026 sales, brokers must also report basis on covered assets. Covered generally means acquired on or after January 1, 2026, and held at that broker. Assets transferred in from elsewhere may show a blank basis.

Moving crypto between your own wallets or exchanges is generally not taxable and should not create a gain or loss. However, exchanges may only record transactions made on their platform. If you bought crypto on one exchange, transferred it to another, and later sold it, the second exchange may not know your original purchase price and report a $0 or missing cost basis. This can make your gain appear much larger than it is. You are responsible for tracking and reporting the correct cost basis, regardless of what your Form 1099-DA shows.

The IRS has no comprehensive DeFi guidance ,so existing tax rules generally apply. DEX token swaps are taxable disposals. Staking and lending rewards are generally taxable income when received. Liquidity pool deposits lack specific IRS guidance, so keep detailed records. Gas fees generally adjust basis or proceeds.

Yes. non-fungible tokens (NFTs) follow general digital asset tax rules. Buying an NFT with crypto is a taxable disposal of the crypto used. Selling or trading an NFT can trigger capital gains tax. Some NFTs may qualify as collectibles, subject to a long-term rate of up to 28%.