How Are Cryptocurrency Gifts Taxed in 2025?

Giving or receiving a cryptocurrency gift does not trigger a taxable event. However, the way the recipient uses the gifted cryptocurrency can affect their tax liability in the future.

Gifting crypto to friends, family, or recognized nonprofits can help avoid capital gains taxes. For US taxpayers, donations to tax-exempt organizations, when held for over a year, can reduce income tax liability while supporting charitable causes.

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Cryptocurrency gifts are digital assets (like Bitcoin, Ethereum, or altcoins) given to another individual or organization without expecting payment in return. You might gift crypto to relatives, friends, or nonprofits (such as a 501(c)(3)).

From a tax perspective, giving crypto gifts does not typically create an immediate tax burden for either party. However, tax obligations can arise later if the recipient sells or disposes of the crypto for a profit.

Use our free crypto tax calculator.

If you’re researching how to gift crypt assets, you can use a crypto exchange or a peer-to-peer transfer to send them. For instance, some platforms let you send crypto easily. You can transfer to another person’s digital wallet if you prefer a more direct approach. Just be sure you have the correct wallet address.

Sometimes, people use a financial service provider (FSP) to facilitate or manage crypto gifts—referred to here as an fsp gift crypto arrangement. Regardless of the method, keep records of the transaction date, the crypto’s value at the time, and (if you’re the recipient) the donor’s cost basis.

Additional considerations may apply for cross-border transfers, such as when foreign parents send gift crypto to their children in the US. Always consult a crypto tax professional about potential reporting requirements.

In the US, giving or receiving a modest crypto gift is generally not a taxable event. You do not pay capital gains taxes simply for transferring the crypto as a gift (if you are the giver). The recipient does not recognize income upon receiving it.

However, keep annual gift tax limits in mind. For 2024, if the total value of your crypto gifts to one recipient exceeds $18,000, you must file a gift tax return (Form 709). For 2025, this threshold is $19,000. Any amount above these annual exclusions applies toward your lifetime gift exemption, which is $13.61 million in 2024 and $13.99 million in 2025.

Giving a crypto gift

• No immediate taxes: Transferring crypto to another individual or nonprofit is not a taxable event for you, the giver.

• Know your limits: If you exceed the annual exclusion amount, file Form 709.

• Share cost basis: The recipient needs your original cost basis (the price you paid) and acquisition date for the crypto to correctly report future gains or losses.

Learn more about crypto cost basis.

Receiving a crypto gift

• No initial tax: You do not owe taxes simply for receiving crypto as a gift.

• Future tax on sale: You’ll only face capital gains taxes (or potentially recognize losses) when you later sell or otherwise dispose of the gifted crypto.

• Recipient’s cost basis: Generally, the recipient’s cost basis is the donor’s cost basis.

• Capital gain or loss: If you sell the gifted crypto above its cost basis, you recognize a capital gain; if you sell below it, you have a capital loss.

• Unknown cost basis: If the donor’s cost basis is unavailable, you may need to use a $0 cost basis, potentially increasing your taxable gain.

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Some people use gift crypto strategies to lower potential capital gains. If you have held an appreciated cryptocurrency for a while, gifting it (rather than selling it) can help avoid realizing a taxable event.

For instance, you could gift crypto to a friend or family member and transfer your existing cost basis to them. This lets you remove the appreciated asset from your portfolio without incurring immediate taxes on its gains. The recipient will eventually handle the tax implications if they sell in the future.

Learn more about how to reduce your crypto taxes.

Here’s a quick breakdown of crypto gift taxes in countries outside the US.

United Kingdom

In the UK, gifting crypto can trigger capital gains tax for the giver unless the gift is made to a spouse or civil partner. Inheritance tax rules may also apply if the donor passes away within seven years of the gift.

Canada

Gifting crypto in Canada is often treated as a taxable disposition, meaning the giver must calculate and report capital gains or losses. Spousal transfers, however, are exempt under Canadian tax laws.

Australia

In Australia, gifting crypto is a Capital Gains Tax (CGT) event, and the donor must report any gains or losses based on the market value at the time of the gift. Gifts between spouses or within specific exemptions may not trigger CGT.

Cross-border considerations

If foreign parents send gift crypto or you transfer crypto across borders, additional tax obligations may arise. Some countries enforce strict reporting requirements for incoming or outgoing cryptocurrency gifts, especially when large amounts are involved. Always check local regulations to ensure compliance.

See our expert picks of the best crypto loans.

Crypto gift tax FAQs

Can the IRS track crypto gifting?

Yes. The IRS increasingly monitors crypto transactions. Even if no tax is due on the gift, you may still need to file the appropriate forms if the gift’s value exceeds the annual threshold.

How much crypto can you gift tax free

You can give up to $18,000 per recipient in 2024 ($19,000 in 2025) without filing a gift tax return. If you go over these limits for a single recipient, you must file Form 709, and the overage applies toward your lifetime gift exemption (currently $13.61 million for 2024 and $13.99 million for 2025).

How to gift crypto to avoid taxes

By gifting crypto you’ve held long-term, you avoid triggering capital gains when transferring to someone else. Donating to a qualified nonprofit can sidestep capital gains on the donated amount and potentially receive a charitable deduction.

Do you pay tax on crypto coins when you receive a gift?

No. Merely receiving crypto gifts is typically not taxable. You’ll face taxes if and when you sell, trade, or otherwise dispose of the gifted crypto, and the amount you owe will depend on the donor’s cost basis and your holding period.