Crypto Tax Rates for 2026

Crypto is taxed like property in the US. That means there is no single crypto tax rate.

Instead, your tax result depends on what happened. If you earned crypto, that is usually income. If you sold, swapped, or spent crypto, that usually creates a capital gain or loss.

Your crypto tax rate depends on the type of transaction. It also depends on your filing status, taxable income, and how long you held the asset before you disposed of it.

Most crypto taxes fall into two buckets. You either have ordinary income, or you have a capital gain or loss.

Here is the simple version:

• Income from crypto is generally taxed at ordinary income tax rates.

• Short-term crypto gains are generally taxed at ordinary income tax rates.

• Long-term crypto gains are generally taxed at 0%, 15%, or 20%.

• Some higher-income investors may also owe the 3.8% net investment income tax on eligible investment income.

Example
You receive $500 of staking rewards. That amount is generally ordinary income when you can control the tokens. If you later sell those same tokens for $650, you generally also have a $150 capital gain.

It depends on the transaction and your tax bracket.

• If you earn crypto from staking, mining, airdrops, referral rewards, or payment for work, it is generally taxed at your ordinary income rate when received.

• If you sell crypto you held for one year or less, the gain is generally taxed at ordinary income tax rates.

• If you sell crypto you held for more than one year, the gain usually qualifies for long-term capital gains rates.

• If you sell at a loss, the loss can offset capital gains.

• If your losses are bigger than your gains, you may generally deduct up to $3,000 against other income, or $1,500 if married filing separately, and carry the rest forward.

• If your income is high enough, the 3.8% net investment income tax can also apply to eligible investment income.

A quick rule of thumb:

• Short-term gains and crypto income usually fall in the 10% to 37% federal range.

• Long-term gains usually fall in the 0%, 15%, or 20% federal range.

• Your actual result depends on your full tax picture, not just the crypto transaction.

Short-term gains generally apply when you dispose of crypto you held one year or less. Those gains get taxed at your ordinary federal income tax rates.

2025 short-term capital-gains tax rates (taxes due in 2026)

The table below shows the 2025 federal ordinary income brackets. These are the brackets that generally apply to short-term crypto gains on returns due in 2026.

Your filing status matters here. Two people with the same gain can still owe different amounts if they file under different statuses.

Long-term gains generally apply when you dispose of crypto you held for more than one year. These rates are often lower than short-term rates.

That one-year line matters a lot. If you are close to it, waiting a little longer can change the tax rate on the gain.

2025 long-term capital-gains tax rates (taxes due in 2026)

The table below shows the 2025 long-term capital gains thresholds. Most taxpayers who qualify for long-term treatment fall into the 0%, 15%, or 20% bracket.

These brackets apply to taxable income, not just the crypto gain by itself. Your other income still matters.

Pro tip
Use and bookmark our free crypto tax calculator to calculate your crypto taxes quickly and easily, this and every tax season.

Most taxable crypto events fit into one of two groups. You either received crypto as income, or you disposed of crypto and need to measure a gain or loss.

The table below shows the most common taxable crypto events.

Pro tip
Cost basis problems are one of the easiest ways to overpay. If you do not track transfers, fees, and original acquisition value, your gains can look bigger than they really are.

These activities are generally not taxable by themselves:

• Buying crypto with US dollars and holding it

• Holding crypto in a wallet or exchange account without disposing of it

• Moving crypto between wallets or accounts you own or control

• Gifting crypto, although gift reporting rules can still apply

• Donating crypto to a qualified charity, although deduction and substantiation rules can still apply if you claim a deduction

Warning: Wallet-to-wallet crypto transfers are generally not taxable by themselves. But if you pay the transfer fee with digital assets, that fee payment can still be a taxable disposal.

Crypto income is generally taxed based on the fair market value of the tokens when you receive them. That same value usually becomes your basis if you later sell, swap, or spend those tokens.

Taxation of crypto mining income

Crypto mining rewards are generally taxed as ordinary income when you receive them. If your mining activity rises to the level of a trade or business, self-employment tax can also come into play.

Example
You mine $800 of BTC. You generally report $800 of income when you receive it. If you later sell it for $1,000, you generally also have a $200 capital gain.

Taxation of staking rewards

Crypto staking rewards are generally taxed as ordinary income when you gain control over the tokens. If you later dispose of those tokens, you calculate a separate capital gain or loss.

Example
You receive $300 of staking rewards. You generally report $300 of income. If you later sell those tokens for $250, you generally have a $50 capital loss.

Taxation of airdrops and hard fork income

A crypto hard fork by itself does not always create taxable income. But if you receive new tokens from an airdrop and can control them, that value is generally taxable income.

Example
A hard fork happens, but your exchange does not support the new token yet. You generally do not have income until you can actually access or control the new token.

Taxation of DeFi income

DeFi income can be harder to classify, but the basic rule is still the same. If you receive tokens or rewards, that can be income. If you swap or dispose of tokens, that can create a capital gain or loss.

Example
A lending protocol pays you $200 of reward tokens. That can be income first. If you later swap those reward tokens for ETH, that swap can also create a separate gain or loss.

Taxation of crypto received as salary or business income

If you receive crypto as wages, the fair market value is generally wage income. If you receive crypto as an independent contractor or business owner, the fair market value is generally business income.

Example
A client pays you $2,000 in ETH for freelance work. You generally report $2,000 of income when paid. If you later sell that ETH for $2,300, you generally also have a $300 capital gain.

Taxation of NFT creator income and royalties

If you create NFTs as part of a business and receive crypto from sales or royalties, that payment is generally taxed like other business or compensation income when received. If you hold the crypto and later dispose of it, the later sale can create a capital gain or loss.

Example
You mint an NFT and receive 0.5 ETH worth $1,200. You generally report $1,200 of income then. If you later sell that ETH for $1,500, you generally also have a $300 capital gain.

Taxation of referral bonuses and rewards

Referral bonuses and similar reward payouts are usually taxed as income when you receive control of them. If you later dispose of the tokens, you calculate a separate gain or loss from that point forward.

Example
You receive $75 of crypto from a referral bonus. You generally report $75 of income. If you later sell it for $60, you generally have a $15 capital loss.

Crypto gains are taxed when you dispose of crypto. A disposal usually means a sale, swap, spend, or another transfer of ownership.

Short-term vs long-term capital gains

If you held the asset for one year or less, the gain is generally short-term. If you held it for more than one year, the gain is generally long-term.

Holding period can make a big difference. The same gain can be taxed at a much lower rate if it qualifies for long-term treatment.

Capital gains on crypto disposals

A capital gain happens when the amount you receive is more than your basis. A capital loss happens when the amount you receive is less than your basis.

Example
You bought BTC for $10,000 and later sold it for $14,000. Your gain is generally $4,000 before fees.

Taxation of crypto-to-crypto transactions

A crypto-to-crypto trade is usually taxable. The coin you gave up is treated like it was sold at its fair market value at the time of the swap.

Example
You swap SOL worth $900 for ETH. You compare the $900 value at the time of the swap to your SOL basis to find the gain or loss.

Taxation of spending crypto

Spending crypto is usually taxable because you disposed of property. Even a small purchase can trigger a gain or loss.

Example
You use BTC to buy a laptop. If the BTC was worth more when you spent it than when you bought it, you generally have a taxable gain.

Capital losses from crypto transactions

Crypto capital losses can offset capital gains. If your total losses are bigger than your total gains, you may generally deduct up to $3,000 against other income, or $1,500 if married filing separately, and carry the rest forward.

Example
You realized $5,000 of gains and $8,500 of losses. The losses first offset the gains. The remaining $3,500 net loss can generally offset up to $3,000 of other income this year, with the rest carried forward.

Capital gains from NFT sales

If you sell an NFT you held as an investment, you generally measure gain or loss the same way you would for other property. You compare your sale proceeds to your basis.

Example
You bought an NFT for $2,000 and sold it for $3,200. Your gain is generally $1,200 before fees.

Taxation of gifted or donated crypto

A crypto gift is generally not a taxable sale for the giver. The recipient usually picks up the tax issue later when they sell, and basis rules can get more complicated than people expect.

Donating crypto to a qualified charity is generally not a taxable sale. But deduction rules, records, and Form 8283 requirements still matter.

Use our free crypto tax calculator

Use our free crypto tax calculator to estimate gains, losses, and crypto income before you file. It is a quick way to sanity-check your tax exposure before tax season gets messy.

The formula is simple. The real challenge is getting the inputs right.

You need your basis, your proceeds, your fees, and the exact lot you sold. If those are wrong, the answer is wrong.

Understanding crypto cost basis

Your crypto cost basis is what you paid for the crypto, plus eligible acquisition costs like fees. If you earned the crypto, your basis is usually the fair market value you already reported as income when you received it.

Example
You buy ETH for $2,000 and pay a $20 fee. Your starting basis is generally $2,020.

Calculating crypto capital gains

Capital gain usually equals proceeds minus adjusted basis. Proceeds are usually the fair market value of what you got when you sold, swapped, or spent the crypto.

Example
You buy BTC for $12,000 and later sell it for $15,500. Your gain is generally $3,500 before fees and other adjustments.

Calculating crypto capital losses

Capital loss uses the same formula. If the result is negative, you have a loss.

Example
You buy SOL for $1,200 and later sell it for $700. Your capital loss is generally $500 before fees.

Can you deduct crypto losses?

Yes. Capital losses can offset capital gains first.

If your losses are still larger than your gains after that, you may generally deduct up to $3,000 against other income, or $1,500 if married filing separately. You can usually carry the rest forward.

Accounting methods used for crypto taxes

The table below shows the common lot-selection crypto accounting methods people talk about for crypto taxes. The big rule is this: FIFO is generally the default if you do not adequately identify the units sold.

LIFO and HIFO are usually discussed as lot-selection approaches under specific identification. They are not automatic defaults.

Warning: Do not assume you can freely switch methods without the records to back it up. If you cannot adequately identify the units sold, FIFO is generally the fallback.

Pro tip
Our industry-leading crypto tax software builds upon the standard HIFO method with our proprietary Minimization accounting method. This method considers your tax rate and reduces taxable gains when possible.

Special scenarios that affect calculations

A few situations can change the math:

• Gifts can create special basis rules for the recipient

• Fees can change basis or proceeds

• Transfers can break your records if they are mislabeled as sales

• Broker statements for 2025 transactions may show proceeds without basis

• Income events like staking or mining create a basis for later gain or loss calculations

Pro tip
If your exchange sends a 1099-DA that shows proceeds but not basis, do not guess. Rebuild basis from your own records before you file.

Most people report crypto on their annual federal return. For tax year 2025, the federal deadline to file and pay is April 15, 2026.

If you file an extension, you usually get until October 15, 2026 to file. But you still generally need to pay what you owe by the April deadline.

Annual crypto tax reporting deadlines

The table below shows the main federal deadlines for individual taxpayers filing 2025 returns in 2026.

Reporting crypto income vs capital gains

Income is generally reported when you receive the crypto. Capital gains or losses are generally reported when you dispose of the crypto later.

This table shows the difference between crypto income and crypto capital gains.

Do you need to report crypto if you didn’t sell?

It depends. If you only bought crypto with real currency and held it, you may have no taxable disposal to report, and that alone generally does not trigger a yes answer to the digital asset question.

But you can still have reportable income if you received staking rewards, mining rewards, airdrops, or crypto as payment.

Pro tip
Some crypto users wager crypto online at various crypto casinos. If you're active in crypto gambling or are considering playing, consider our expert article on crypto gambling taxes to understand the implications and know the risks involved.

What happens if you miss the crypto tax deadline?

If you miss the deadline and owe tax, the IRS can charge penalties and interest. The failure-to-file penalty is usually 5% of the unpaid tax for each month or part of a month the return is late, up to 25%.

Filing an extension can help with the filing side. It does not give you more time to pay.

Pro tip
Digital asset reporting is getting easier for the IRS to cross-check because brokers now have Form 1099-DA reporting for 2025 transactions. That is one more reason to clean up records before filing.

The simplest way to report crypto is to separate your activity into a few buckets, then match each bucket to the right form.

1. Separate disposals from income.

2. Calculate gain or loss for each taxable sale, swap, or spend.

3. Total your crypto income.

4. Match gifts and donations to the right forms.

5. Keep your supporting records in case the IRS asks questions.

Form 1040 digital asset question

Every Form 1040 filer must answer the digital asset question yes or no. If you only bought crypto with real currency and held it, or only held it in a wallet or account, that alone generally does not require a yes answer.

If you sold, swapped, spent, or received digital assets in taxable ways, the answer is usually yes. The IRS has a helpful tool to determine what you should answer - find it here.

Form 8949

Use Form 8949 to report most taxable crypto disposals. That is where you list proceeds, basis, and gain or loss for sales, swaps, and similar transactions.

Schedule D

Schedule D is the summary form for capital gains and losses. Your totals from Form 8949 usually roll up here.

Schedule 1

Schedule 1 is commonly used for crypto income that is not part of a trade or business. That can include many rewards and other income items that are not reported elsewhere.

Schedule C and Schedule SE

If you were paid in crypto as an independent contractor, or your crypto activity rises to the level of a business, you may need Schedule C. Schedule SE can also apply if that income is subject to self-employment tax.

Form 709

If you make a reportable crypto gift, the donor files Form 709. For 2025 and 2026, the annual exclusion is $19,000 per recipient.

Form 8283

If you claim a deduction for noncash charitable contributions over $500, including donated crypto, Form 8283 may be required. If the value of digital asset property exceeds $5,000, appraisal rules can apply because digital assets are generally not treated as publicly traded securities for this purpose.

Form 1099-DA

Form 1099-DA is the new broker reporting form for digital asset proceeds. It applies to transactions on or after January 1, 2025, and brokers generally must furnish statements for 2025 transactions by February 17, 2026.

For 2025 sales, brokers are not required to report basis on Form 1099-DA. That means many taxpayers will still need their own records to calculate gain or loss correctly.

What records should I keep for crypto taxes?

Keep records that let you prove your numbers:

• Exchange CSV exports and account statements

• Wallet addresses and transaction IDs

• Dates and times for buys, sales, swaps, and transfers

• USD values at the time of each transaction

• Fees paid

• Notes showing which transfers were between your own wallets

• Any Forms 1099-DA, 1099-MISC, 1099-NEC, W-2, or other tax statements you received

• Your basis method and any specific-lot instructions you used

Want to know how to reduce your crypto taxes in the US? Here are some common ways to lower crypto taxes legally:

1. Keep basis and transfer records clean so you do not overstate gains.

2. Hold appreciated crypto for more than one year when that fits your strategy.

3. Use capital losses to offset capital gains when you have them.

4. Use specific identification when your records support it.

5. Donate appreciated crypto to charity if you already planned to give and can claim the deduction.

6. Be careful with gifts, because they can move the tax event without always removing it.

7. File on time so penalties and interest do not make the bill worse.

Pro tip
When you sell matters as much as when you buy. Get educated with our experts guide to cashing out and crypto taxes and develop a strategy to minimize your taxes this and every tax season.

This article, of course, focuses on US taxes and taxpayers. For more information about international crypto taxes, see any number of our helpful country guides:

• Crypto taxes in Australia

• Crypto taxes in Canada

• Crypto taxes in Denmark

• Crypto taxes in Dubai

• Crypto taxes in Germany

• Crypto taxes in Greece

• Crypto taxes in India

• Crypto taxes in Ireland

• Crypto taxes in Italy

• Crypto taxes in Japan

• Crypto taxes in the Netherlands

• Crypto taxes in New Zealand

• Crypto taxes in Portugal

• Crypto taxes in Puerto Rico

• Crypto taxes in Singapore

• Crypto taxes in South Africa

• Crypto taxes in Spain

• Crypto taxes in Sweden

• Crypto taxes in the United Kingdom