Crypto Tax Calculator

How your gain stacks across tax brackets

Key numbers

Effective tax rate on this amount

Short-term vs. long-term — what holding longer would change

Using your current gain and other income, here's the estimated federal tax if this had been short-term vs. long-term \u2014 and how the tax on this amount changes at different levels of other income.

How your other income changes the tax on this gain

Same gain, same holding period — here's how the estimated federal tax shifts at different levels of other taxable income, since long-term gains stack on top of it.

Understanding crypto taxes in the US

The IRS treats cryptocurrency as property, not currency. That single classification drives almost everything else: selling crypto for dollars, trading one coin for another, and spending crypto on goods or services are all "disposals" that can trigger a capital gain or loss, just like selling stock or real estate. Simply buying crypto with cash, or holding it while its price moves, is not itself taxable.

Cost basis is what you paid to acquire the asset, including transaction and exchange fees. Proceeds are what you received when you disposed of it, net of any sale fees. If you've bought the same asset at different times and prices, you also need an accounting method to determine which specific units you're treated as selling — that's where FIFO, LIFO, and HIFO come in.

Short-term vs. long-term: the one-year line

Hold a crypto asset for one year or less before disposing of it, and any gain is short-term, taxed at your ordinary income rate — the same brackets that apply to wages, running from 10% up to 37%. Hold it for more than one year, and the gain becomes long-term, taxed at the preferential federal rate of 0%, 15%, or 20% depending on your total taxable income. In the default example on this page, a $11,650 long-term gain on top of $95,000 of other income is taxed at 15% ($1,747.50); the identical gain, if short-term instead, would be taxed at $2,582.00 at ordinary rates — a difference of over $800 purely from the holding period.

FIFO, LIFO and HIFO: the same trade, different tax bills

When you've accumulated the same asset across multiple purchases, the IRS lets you choose (and must apply consistently) an accounting method to identify which units a given sale consumes. FIFO (first-in, first-out) treats your oldest units as sold first — it's the IRS default if you don't specify otherwise, and it tends to produce the largest gain in a rising market because your earliest purchases usually have the lowest cost basis. LIFO (last-in, first-out) sells your most recent units first. HIFO (highest-in, first-out) sells whichever units cost the most, regardless of when you bought them, which typically minimizes your taxable gain but requires clean documentation to defend if the IRS asks. In the cost basis example on this page, the exact same sale produces a $51,200 gain under FIFO versus $47,700 under HIFO — a $3,500 difference in taxable gain, worth roughly $525 in federal tax at a 15% long-term rate.

The Net Investment Income Tax (NIIT)

Higher earners face an additional 3.8% federal tax on investment income, including capital gains, once modified adjusted gross income exceeds $200,000 (single or head of household) or $250,000 (married filing jointly) for 2026. NIIT is charged on the smaller of your net investment income or the amount your income exceeds the threshold, and it stacks on top of your regular capital gains tax — pushing the effective top federal rate on long-term gains to 23.8% for the highest earners.

Mining, staking and airdrops: taxed twice, at two different times

Per IRS Revenue Ruling 2023-14, crypto received from mining or staking is ordinary income at its fair market value on the date you gain dominion and control over it — reported and taxed in that year, regardless of whether you sell it. That same value then becomes your cost basis for the coins. If you later sell them, that's a second, separate taxable event: a capital gain or loss based on the difference between the sale price and the value you already paid income tax on when you received them.

No wash sale rule — for now

The wash sale rule (IRC §1091), which disallows a loss deduction if you buy back a "substantially identical" security within 30 days, applies only to securities and stock. Since the IRS classifies crypto as property rather than a security, the wash sale rule currently doesn't apply — you can sell a losing position to realize the loss and immediately repurchase the same asset without the loss being disallowed. This is a meaningful difference from how the same strategy works with stocks, though it has been the subject of legislative proposals that could change it in the future.

Capital losses and the $3,000 deduction cap

Capital losses first offset capital gains of the same type — short-term losses against short-term gains, long-term against long-term — then any remaining loss offsets the other type. If your net capital loss for the year still exceeds your net capital gains, you can deduct up to $3,000 of the excess against ordinary income ($1,500 if married filing separately). Anything beyond that carries forward to future tax years indefinitely, with no expiration.

What this calculator does not cover

This tool estimates US federal tax only, using 2026 IRS brackets, and does not include state income tax, which varies enormously by state — some states have none, while others tax capital gains as ordinary income at rates exceeding 10%. It also doesn't cover every edge case: NFT-specific rules, DeFi liquidity pool events, hard forks, gifting, donating appreciated crypto to charity, or wash-sale-style legislative changes that may arrive in the future. Treat these figures as a planning estimate, and confirm your specific situation with a qualified tax professional before filing.

Glossary of terms

Cost basis

What you paid to acquire an asset, including fees — used to calculate gain or loss when you dispose of it.

Disposal

Any event that realizes a gain or loss for tax purposes — selling for cash, trading for another crypto, or spending it.

FIFO / LIFO / HIFO

Accounting methods for identifying which specific units a sale consumes when you've bought the same asset at different times and prices.

Short-term / long-term

Whether an asset was held one year or less (short-term, ordinary rates) or more than one year (long-term, preferential rates) before disposal.

NIIT (Net Investment Income Tax)

An additional 3.8% federal tax on investment income for higher earners above set income thresholds.

Ordinary income

Income taxed at the regular graduated brackets (10%–37%) — includes wages, short-term capital gains, and mining/staking rewards.

Wash sale rule

A rule disallowing a loss deduction if a substantially identical security is repurchased within 30 days — currently does not apply to crypto.

Form 8949 / Schedule D

The IRS forms used to report individual crypto disposals and summarize total capital gains and losses for the year.

How to use this calculator

Common mistakes & tips for crypto taxes

• Forgetting that crypto-to-crypto trades are taxable. Swapping BTC for ETH realizes a gain or loss on the BTC you gave up, even though no cash touched a bank account.
• Ignoring fees when calculating cost basis. Purchase and sale fees both adjust your gain — skipping them means overstating your taxable gain.
• Not picking (and sticking with) a cost basis method. The IRS defaults to FIFO if you don't specify otherwise, and requires consistency within a tax year — decide deliberately rather than by accident.
• Missing the one-year holding period by a few days. Selling one day early can mean paying ordinary rates instead of preferential long-term rates on the entire gain.
• Not reporting mining or staking income until it's sold. These rewards are taxable as ordinary income when received, independent of whether or when you later sell them.
• Assuming losses are wasted. Even losses beyond the $3,000 annual deduction limit carry forward indefinitely — they're not lost, just deferred.

Example setups

A few realistic scenarios — click one to load it into the Capital Gains Tax tab above.

Your saved setups

Click "💾 Save setup" above to keep the estimate you're currently running — it's stored privately in this browser, not sent anywhere, so it'll be here next time you visit on this device.

FIFO vs. HIFO — the same sale, two different tax bills

Two lots (1.0 unit at $20,000, 0.5 unit at $27,000), selling 0.8 units at $84,000, both lots held long-term.

Same lots, same sale — HIFO's higher cost basis produces $3,500 less taxable gain than FIFO, worth about $525 less federal tax at a 15% long-term rate. The gap grows with more lots, a wider spread of purchase prices, and a higher tax bracket. FIFO remains the IRS default if you don't specify another method, and whichever method you choose must be applied consistently within a tax year.

Frequently asked questions

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