How to Use the Crypto Tax Calculator
Cryptocurrency is treated as property by the IRS, meaning every trade, sale, or crypto-to-crypto exchange is a taxable event. This calculator estimates your capital gains tax on crypto trades based on your holding period and other income.
Enter your purchase price (cost basis), sale price (proceeds), other taxable income, and select your holding period. The calculator automatically applies the appropriate tax rate — short-term (ordinary income rates up to 37%) or long-term (0-20%).
Cryptocurrency Tax Rates for 2026
Crypto held for less than 1 year is taxed as short-term capital gains at your ordinary income tax rate (10-37%). Crypto held for more than 1 year qualifies for long-term capital gains rates: 0% (income up to $47,025 single), 15% ($47,025-$518,900), or 20% (over $518,900). The 3.8% NIIT may also apply for high earners.
| Holding Period | Tax Rate | $10,000 Gain Tax | $50,000 Gain Tax | $100,000 Gain Tax |
|---|---|---|---|---|
| Short-Term (≤ 1 yr) | 10% – 37% | $2,200 | $12,000 | $24,000 |
| Long-Term (> 1 yr) | 0% – 20% | $0 | $7,500 | $15,000 |
| Potential Savings | — | $2,200 | $4,500 | $9,000 |
* Based on single filer with $80,000 ordinary income. Actual results vary by filing status and total income.
Frequently Asked Questions (FAQs)
Is crypto-to-crypto trading a taxable event?
Yes — exchanging Bitcoin for Ethereum (or any crypto-to-crypto trade) is a taxable event. The IRS considers this a sale of the original asset, and you must report the gain or loss based on the fair market value at the time of the trade. This applies to DeFi swaps, token exchanges, and even converting crypto to stablecoins.
Do I need to report crypto taxes if I only bought and held?
No — simply buying and holding cryptocurrency is not a taxable event. You only trigger a tax liability when you sell, trade, spend, or otherwise dispose of your crypto. However, if you earn crypto through staking, mining, or as payment for services, that income is taxable as ordinary income at the time of receipt.
Can I use crypto losses to offset gains?
Yes — tax-loss harvesting applies to cryptocurrency. You can use realized crypto losses to offset crypto gains and up to $3,000 of ordinary income per year. Unused losses carry forward to future years. Be aware of the wash sale rule — while the IRS hasn't officially applied it to crypto, it's safest to avoid repurchasing the same asset within 30 days.
Data Sources & Methodology
Our Crypto Tax Calculator uses 2026 federal tax rates from official IRS sources. All data is verified as of May 2026.
- Short-Term Rates: Ordinary income tax brackets (10%–37%) from IRS Revenue Procedure 2025.
- Long-Term Rates: 0%, 15%, 20% capital gains brackets from IRS Form 1040 Instructions.
- Crypto Tax Treatment: IRS Notice 2014-21 and subsequent guidance from IRS Virtual Currency FAQ.
- Wash Sale Rule: IRS Section 1091 from US Code Title 26. Currently does not officially apply to cryptocurrency.
How We Calculate: Short-term gains are added to your ordinary income and taxed at marginal income tax rates (10%–37%). Long-term gains use the stacking method — ordinary income fills lower tax brackets first, then capital gains are taxed at 0%, 15%, or 20% on top. The NIIT (3.8%) is calculated on the lesser of net investment income or MAGI minus the applicable threshold.
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