Crypto Tax Calculator: Estimate Capital Gains Tax on Crypto
Estimate your crypto capital gains tax for the US. Calculate short-term and long-term gains, apply tax brackets, and understand your reporting obligations.
This is an estimate only, not tax advice. Actual tax liability depends on your complete financial situation, state taxes, deductions, and other factors. Consult a qualified tax professional.
How Cryptocurrency Is Taxed in the US
The IRS treats cryptocurrency as property, not currency. This classification means that every time you dispose of crypto (sell it, trade it for another token, or spend it on goods and services), you trigger a taxable event. The tax you owe is based on the difference between what you paid for the asset (your cost basis) and what you received when you disposed of it (the fair market value at the time of the transaction).
This property treatment applies to all digital assets: Bitcoin, Ethereum, stablecoins, NFTs, and tokens received through airdrops or staking rewards. The IRS has been expanding its enforcement since 2014, when it first issued guidance in Notice 2014-21. Starting with the 2024 tax year, centralized exchanges are required to issue 1099 forms to users who meet certain thresholds, making it harder to underreport crypto gains.
Short-Term vs. Long-Term Capital Gains
The length of time you hold a cryptocurrency before selling it determines which tax rate applies. If you hold for one year or less, any profit is classified as a short-term capital gain and taxed at your ordinary income tax rate. If you hold for more than one year, the profit qualifies as a long-term capital gain and is taxed at preferential rates that are significantly lower for most taxpayers.
The holding period starts the day after you acquire the asset and ends on the day you dispose of it. For example, if you buy Bitcoin on January 15, 2024, and sell it on January 16, 2025, you have held it for exactly one year and one day, qualifying for long-term treatment. Selling it on January 15, 2025, would be exactly one year, which counts as short-term.
2024 Long-Term Capital Gains Tax Brackets
Long-term capital gains are taxed at three rates: 0%, 15%, or 20%. The rate depends on your taxable income and filing status:
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | $0 to $47,025 | $0 to $94,050 | $0 to $63,000 |
| 15% | $47,026 to $518,900 | $94,051 to $583,750 | $63,001 to $551,350 |
| 20% | $518,901+ | $583,751+ | $551,351+ |
2024 Short-Term Capital Gains Tax Brackets (Single Filer)
Short-term gains are taxed as ordinary income. The 2024 federal income tax brackets for a single filer are:
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | $609,351+ |
Taxable Events in Crypto
Not every crypto transaction creates a tax obligation. Understanding which actions are taxable and which are not is essential for accurate reporting.
Taxable events include:
- Selling cryptocurrency for fiat currency (USD, EUR, etc.)
- Trading one cryptocurrency for another (e.g., BTC to ETH)
- Spending cryptocurrency on goods or services
- Receiving crypto as payment for work or services (taxed as ordinary income)
- Mining rewards (taxed as ordinary income at the time received)
- Staking rewards (taxed as ordinary income when you gain control)
- Airdrops (taxed as ordinary income at fair market value when received)
Non-Taxable Events in Crypto
Several common crypto activities do not trigger a tax obligation:
- Buying cryptocurrency with fiat currency
- Holding cryptocurrency without selling or trading
- Transferring crypto between your own wallets
- Gifting crypto (up to $18,000 per recipient in 2024 without gift tax implications)
- Donating crypto to a qualified 501(c)(3) charity
Note that while transferring between your own wallets is not taxable, you should keep records of these transfers to prove they are not sales. Exchanges and blockchain analytics tools may flag large transfers as potential dispositions if you cannot demonstrate that both wallets belong to you.
Reporting Requirements: Form 8949 and Schedule D
Crypto capital gains and losses must be reported on Form 8949 (Sales and Other Dispositions of Capital Assets) and summarized on Schedule D of your federal tax return. Each transaction requires you to report the date acquired, date sold, proceeds, cost basis, and gain or loss.
Form 8949 is split into two parts: Part I for short-term transactions (held one year or less) and Part II for long-term transactions (held more than one year). The totals from Form 8949 flow into Schedule D, which calculates your overall capital gain or loss for the year.
If you have capital losses that exceed your capital gains, you can deduct up to $3,000 of net capital losses against your ordinary income per year ($1,500 if married filing separately). Any remaining losses carry forward to future tax years indefinitely.
How to Use This Calculator
Enter the price you paid per coin (purchase price), the price you sold or plan to sell at (sale price), and the number of coins involved in the transaction. Then select your holding period, filing status, and approximate annual income bracket to see your estimated tax liability.
The calculator computes your capital gain or loss, determines the applicable tax rate based on your inputs, and estimates the tax owed. It also shows your net profit after tax so you can see how much you actually keep. All calculations are performed locally in your browser with no data sent to any server.
Frequently Asked Questions
Do I owe taxes if I just bought crypto and haven't sold it?
No. Simply purchasing and holding cryptocurrency is not a taxable event. You only owe capital gains tax when you sell, trade, or spend your crypto. However, if you receive crypto as income (through mining, staking, or as payment for services), that receipt is taxed as ordinary income regardless of whether you sell it.
What happens if I sell crypto at a loss?
Capital losses can offset capital gains dollar for dollar. If your total losses exceed your total gains for the year, you can deduct up to $3,000 of the net loss against your ordinary income. Any remaining loss carries forward to future tax years. Note that the IRS wash sale rule, which prevents claiming a loss if you repurchase a substantially identical security within 30 days, does not currently apply to crypto under existing law, though proposed legislation could change this.
How is crypto-to-crypto trading taxed?
Trading one cryptocurrency for another (for example, swapping BTC for ETH) is a taxable event. You must calculate the fair market value of the crypto you received at the time of the trade, subtract your cost basis in the crypto you gave up, and report the difference as a capital gain or loss. This applies to every swap, including trades on decentralized exchanges.
Do I need to report crypto on my taxes if I only made a small amount?
Yes. There is no minimum threshold for reporting crypto gains. The IRS requires you to report all capital gains, regardless of the amount. Since 2019, the front page of Form 1040 has included a question asking whether you received, sold, sent, exchanged, or otherwise acquired any digital assets during the tax year. Answering this question inaccurately can be considered tax fraud.
What cost basis method should I use?
The IRS allows several cost basis methods: FIFO (first in, first out), LIFO (last in, first out), and specific identification. FIFO is the default and most commonly used. Specific identification lets you choose which lots to sell, potentially minimizing your tax by selling higher-cost lots first. Whichever method you choose, you must apply it consistently and keep detailed records.
Are stablecoin transactions taxable?
Yes. Even though stablecoins like USDC and USDT are designed to maintain a $1 peg, they are still treated as property by the IRS. Converting one stablecoin to another, or swapping a stablecoin for a volatile crypto, is technically a taxable event. In practice, the gain or loss on stablecoin-to-stablecoin swaps is usually negligible (a fraction of a cent per coin), but it must still be reported.
Does this calculator account for state taxes?
No. This calculator estimates federal capital gains tax only. Many states impose their own income tax on capital gains. State rates range from 0% (in states like Florida, Texas, and Wyoming) to over 13% (in California). Your total tax liability may be higher than what this calculator shows depending on where you live.
What about the Net Investment Income Tax (NIIT)?
High-income taxpayers may also owe the 3.8% Net Investment Income Tax on their crypto gains. The NIIT applies to individuals with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly). This calculator does not include the NIIT in its estimate. If you earn above these thresholds, your actual tax rate on crypto gains will be higher than shown.
This calculator provides estimates for educational purposes only. It is not tax, legal, or financial advice. Tax laws are complex and change frequently. Consult a qualified tax professional for advice specific to your situation.
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