What Are The Crypto Tax Rates?

Andrew PerlinUpdated at: Jan 5th, 2022

This article is part of our crypto tax guide: Get help filing cryptocurrency taxes.

When your crypto gains are taxed, your crypto tax rate will be either your income tax rate or lower capital gains rates, depending on how long you held the crypto. Your holding period dictates whether you pay income tax rates or capital gains tax rates.

How is crypto taxed?

Your income from crypto transactions will be taxed as short-term gains if you held the asset for a year or less before disposing of it. The federal short-term capital gains rate is the same as the tax rate for income; currently, it can range from 10% to 37%, depending on your total income.

If you hold the crypto for more than a year, then your profit from selling or disposing of it is considered a long-term capital gain. Long-term capital gains tax rates typically range from 0% to 20%, depending on your total income.

However, if your asset could be considered a collectible, you may be liable for the higher 28% collectibles capital gains tax rate.

Short-term capital gains tax brackets (equal to your income tax rates)

Here are the federal income tax brackets in the United States for the 2021 tax year. These tax rates apply to short term capital gains (crypto or other capital assets held for less than 1 year). Note that this is the same as your ordinary income tax rate.

Tax rateSingle filerMarried filing jointlyMarried filing separatelyHead of household
10%$0 – $9,950$0 to $19,900$0 to $9,950$0 to $14,200
12%$9,951 to $40,525$19,901 to $81,050$9,951 to $40,525$14,201 to $54,200
22%$40,526 to $86,375$81,051 to $172,750$40,526 to $86,375$54,201 to $86,350
24%$86,376 to $164,925$172,751 to $329,850$85,526 – $163,300$86,351 to $164,900
32%$164,926 to $209,425$329,851 to $418,850$164,926 to $209,425$164,901 to $209,400
35%$209,426 to $523,600$418,851 to $628,300$209,426 to $314,150$209,401 to $523,600
37%$523,601 or more$628,301 or more$314,151 or more$523,601 or more

Long-term capital gains tax brackets

Here are the federal capital gains tax rates per income tax bracket in the United States for the 2021 tax year. These rates apply to long term capital gains (crypto or other assets held for more than 1 year).

Tax rateSingle filerMarried filing jointlyMarried filing separatelyHead of household
0%$0 – $40,400$0 – $80,800$0 – $40,400$0 – $54,100
15% $40,401 – $445,850 $80,801 – $501,600$40,401 – $250,800 $54,101 – $473,750
20% $445,851 or more$501,601 or more$250,801 or more$473,751 or more

Cryptocurrency tax software calculates whether the crypto you are selling was held long or short term. You can also choose between different accounting methods like FIFO, LIFO, or Minimization. Our Minimization method works to defer tax lots to long term gains where possible where it produces the lowest tax liability via your tax rates. 

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