Crypto Taxes 2025: The Complete Guide
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US taxpayers pay crypto taxes at rates that range from 0 to 37%, depending on their income and how long they’ve held the assets. Long-term gains usually qualify for lower tax rates.
The IRS requires all crypto gains and income to be reported. Tools like our platform at TokenTax make it easier to stay compliant and simplify the reporting process.
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What is the cryptocurrency tax rate?
The IRS considers cryptocurrency property and applies similar tax treatments to stocks or real estate, meaning US taxpayers face crypto tax rates from 0% to 37%. Cryptocurrency tax rates depend on holding periods, transaction types, and income levels. Correctly categorizing your crypto activity helps ensure accurate tax filings and minimizes liabilities.
Looking to calculate your crypto profit? Try our free crypto profit calculator.
How is the crypto tax rate calculated?
The crypto tax rate calculation depends on two main factors: the asset's holding period and the taxpayer's total taxable income. Short-term gains from crypto held for a year or less are taxed at standard income tax rates ranging from 10-37% based on income. Long-term gains from crypto held over a year are taxed at lower rates, usually between 0% and 20%.
Additional factors, like receiving crypto as payment or income from mining or staking, mean these earnings are taxed at ordinary income rates.
Short-term capital gains tax for crypto
For US taxpayers, short-term capital gains apply to crypto held for a year or less and are taxed as ordinary income. This can range from 10% to 37%, depending on total taxable income. For example, if you sell crypto at a gain within a year of purchase, it will be taxed at the same rate as your other income sources.
Short-term gains are generally higher than long-term rates, emphasizing the importance of strategic long-term holding for tax purposes.
Long-term capital gains tax for crypto
Long-term crypto gains apply when assets are held for over a year, offering lower tax rates, usually between 0% and 20%. This lower tax rate encourages long-term investment, as assets held longer than a year are not subject to the higher income tax brackets of short-term holdings, which are taxed like ordinary income. For example, if you sell Bitcoin after holding it for over a year, you’ll likely pay a reduced tax rate on the profits.
Use the charts below to find your capital gains tax bracket for crypto in 2024, for taxes due April 15 2025.
2024 Short-term capital gains brackets (taxes due in 2025)
| Tax Rate | Single Filers | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
| 37% | Over $609,351 | Over $731,201 | Over $365,601 | Over $609,351 |
2024 Long-term capital gains tax rates (taxes due in 2025)
| Tax Rate | Single Filers | Head of Household | Married Filing Jointly | Married Filing Separately |
|---|---|---|---|---|
| 0% | Up to $47,025 | Up to $63,000 | Up to $94,050 | Up to $47,025 |
| 15% | $47,026 to $518,900 | $63,001 to $551,350 | $94,051 to $583,750 | $47,026 to $291,850 |
| 20% | Over $518,900 | Over $551,350 | Over $583,750 | Over $291,850 |
- IRS
What crypto transactions are taxable?
Taxable crypto transactions include selling crypto for fiat, trading one cryptocurrency for another, and using crypto to purchase goods or services. Each of these events can generate taxable gains or losses, depending on the difference between the asset’s acquisition cost (cost basis) and sale price.
Here’s a thorough table of common taxable crypto events:
| Taxable Event | Crypto Tax Rate | Description |
|---|---|---|
| Selling crypto for fiat (e.g., BTC for USD) | Short- or long-term capital gains | Selling your crypto for fiat currency is a taxable event. The tax rate depends on how long you held the asset. |
| Trading one crypto for another | Short- or long-term capital gains | Exchanging one type of cryptocurrency for another (e.g., BTC for ETH) is taxable, with gains or losses based on holding period and cost basis. |
| Using crypto to buy goods or services | Short- or long-term capital gains | Spending crypto on goods/services (e.g., using BTC for a purchase) is considered a disposal and taxable. |
| Receiving crypto as payment for services | Ordinary income tax rate | Receiving crypto as payment for work or services is taxed as ordinary income, with the fair market value included in gross income. |
| Crypto mining rewards | Ordinary income tax rate | Rewards earned from crypto mining are considered income and taxed at regular rates, with gains or losses calculated upon sale of mined coins. |
| Staking rewards | Ordinary income tax rate | Like mining, staking crypto rewards are income when received and taxed at ordinary rates, with capital gains or losses assessed when the rewards are sold. |
| Airdrops and hard forks | Ordinary income tax rate | Any crypto received via airdrop or hard fork is taxed as income based on its fair market value at receipt, creating a new cost basis for future gains/losses. |
| Converting crypto to stablecoins | Short- or long-term capital gains | Converting to a stablecoin (e.g., USDT) is a taxable event. Gains or losses are based on the asset’s value change since acquisition. |
Our Expert Tip: Use a crypto tax calculator like ours at TokenTax to accurately track gains and ensure compliance with IRS regulations.
See our expert picks of the best crypto loans.
Not taxable
Certain crypto activities are not considered taxable events. These include transferring crypto between personal wallets, holding assets without selling, and gifting crypto in some cases.
Learn how to reduce your crypto taxes.
Use our free crypto tax calculator in 2025
Planning your crypto taxes for 2025 has never been easier with TokenTax's free crypto tax calculator. This crypto and Bitcoin tax calculator gives you a straightforward way to estimate your tax liabilities, whether you're dealing with capital gains from Bitcoin or income from staking and mining.
You can get a quick overview of what you owe by inputting simple details like annual income, buy and sell prices, and transaction fees. The calculator also accounts for your state of residence and filing status, giving you tailored estimates based on your unique financial situation.
Use our free crypto tax calculator.
Crypto tax FAQs
How much is crypto taxed?
What is the long-term crypto tax rate?
What’s the crypto tax rate for mining or staking?
How does the IRS track crypto taxes?
Do I have to report crypto if I didn’t sell it?
How do I calculate my crypto tax rate?
Can I reduce my crypto tax liability?
Is crypto taxed as income?
What is the tax on crypto staking?
Do I pay taxes on every crypto trade?
Is there a tax on cryptocurrency in 2025?
How can I lower my taxes on cryptocurrency?
Do I pay crypto tax if I give crypto as a gift?
How much are taxes on cryptocurrency?
See our expert picks of the best crypto wallets.
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