Simple crypto tax calculator for calculating capital gains on cryptocurrency sales. Calculate capital gains, losses, and estimated tax liability for your crypto transactions.
Price per unit when purchased
Price per unit when sold
Number of units sold
Days held before selling
When you sell cryptocurrency for more than you paid, the profit is a capital gain and is taxable. The IRS treats cryptocurrency as property, not currency, so every sale, trade, or use triggers a taxable event.
Short-term: Assets held 365 days or less, taxed as ordinary income (10-37%).Long-term: Assets held over 365 days, taxed at preferential rates (0%, 15%, or 20% depending on income).
Your cost basis is what you paid for the crypto, including fees. When you sell, your gain or loss is the proceeds (sale price) minus cost basis. Accurate cost basis tracking is essential for correct tax reporting.
Losses offset gains dollar-for-dollar. If losses exceed gains, deduct up to $3,000 annually against ordinary income. Remaining losses carry forward indefinitely - a major tax planning tool!
Selling crypto for fiat, trading one crypto for another, using crypto to buy goods/services, and receiving crypto as income are all taxable. Simply buying and holding is not taxable.
If you owe over $1,000 in taxes, make quarterly estimated payments to avoid underpayment penalties. Deadlines: April 15, June 15, September 15, and January 15.
Enter the price per unit when you originally purchased the crypto. Include exchange fees in your cost basis for accurate calculations. Example: If you bought Bitcoin at $20,000, enter 20000.
Enter the price per unit when you sold. Subtract exchange fees from proceeds. Example: If you sold Bitcoin at $60,000, enter 60000.
How many units did you sell? Can be fractional (0.5 BTC, 2.75 ETH, etc.). This multiplies with your prices to calculate total cost basis and proceeds.
Days between purchase and sale. 365 days or less = short-term (higher taxes). Over 365 days = long-term (lower taxes). This is the most important factor for tax optimization!
Bought 0.5 BTC at $20,000, sold at $60,000 after 400 days:
Result: $20,000 gain, long-term rate (15%), estimated tax: $3,000
Cost Basis = Purchase Price × Quantity
Example: $20,000 × 0.5 = $10,000
Proceeds = Sale Price × Quantity
Example: $60,000 × 0.5 = $30,000
Gain/Loss = Proceeds - Cost Basis
Example: $30,000 - $10,000 = $20,000 gain
Rate = Holding Period > 365 ? 15% : 24%
Example: 400 days → Long-term → 15%
Tax = Gain × (Rate / 100)
Example: $20,000 × 0.15 = $3,000
If Gain/Loss < 0, Tax = $0
Losses offset gains instead of creating tax
Holding for exactly 365 days = short-term (24% rate). Holding for 366+ days = long-term (15% rate).
On a $10,000 gain: Short-term tax = $2,400 vs Long-term tax = $1,500. That's $900 saved by waiting one extra day! Always try to hold over 365 days for significant gains.
The single best tax move: wait over 365 days for long-term treatment. Saves 9-22% in taxes depending on your income bracket. On large gains, this is thousands of dollars saved by waiting a few more weeks.
Strategically sell losing positions to offset gains. If you have $20,000 in gains and $15,000 in losses, you only owe tax on $5,000. Harvest losses in December to offset the year's gains.
If you bought Bitcoin at different prices, you can choose which lot to sell. Sell high-cost-basis coins first to minimize gains, or low-cost-basis coins after holding 365+ days for long-term treatment.
December is crucial for tax planning. Realize losses to offset gains, or wait until January to defer gains to next year. Time sales strategically across tax years to manage your bracket.
Donating crypto held over 365 days to qualified charities gives you a deduction for fair market value without paying capital gains tax. Win-win: support causes and save on taxes.
While wash sale rules don't officially apply to crypto yet, they might soon. Don't repurchase the same asset within 30 days of selling for a loss, or the loss may be disallowed.
Scenario: You have $50,000 in crypto gains and $20,000 in unrealized losses from other coins.
Without strategy: Pay tax on full $50,000 gain = $12,000 tax (at 24%) or $7,500 (at 15%)
With tax-loss harvesting: Sell losers to offset gains. Now only pay tax on $30,000 net gain = $7,200 (at 24%) or $4,500 (at 15%). You saved $4,800 or $3,000 respectively!
Report every crypto sale on Form 8949 "Sales and Other Dispositions of Capital Assets." Include: description, date acquired, date sold, proceeds, cost basis, and gain/loss for each transaction.
Transfer totals from Form 8949 to Schedule D "Capital Gains and Losses." This summarizes your short-term and long-term gains/losses and calculates your net capital gain or loss.
Your main tax return asks "At any time during the year, did you receive, sell, exchange, or dispose of any financial interest in any virtual currency?" Answer truthfully - the IRS is serious about crypto compliance.
Keep records of every transaction: dates, amounts, exchange rates, wallet addresses, and transaction IDs. The IRS can audit up to 3 years back (6 years for major issues). Document everything!
For multiple transactions, use specialized software: CoinTracker, Koinly, TokenTax, CoinLedger, or ZenLedger. They connect to exchanges, calculate gains/losses, and generate tax forms automatically.
Complex situations (DeFi, NFTs, mining, staking, airdrops) require crypto-savvy CPAs or EAs. Find professionals through firms like Gordon Law Group, CoinTracker CPA network, or TokenTax Pro.
The IRS receives transaction data from major US exchanges via Form 1099-B and 1099-K. They're actively matching this data against tax returns. Underreporting or not reporting crypto transactions can result in penalties, interest, and even criminal charges for tax evasion. When in doubt, consult a professional.
Coins received from mining or staking are taxed as ordinary income at fair market value when received. When you later sell those coins, you have a second taxable event (capital gain/loss from the income value).
Airdropped tokens and fork coins are taxable as ordinary income at fair market value when you have "dominion and control" (usually when claimed or received in your wallet).
Trading one crypto for another (BTC for ETH) is a taxable event. You must calculate gain/loss on the disposed crypto at the fair market value when traded. Every swap triggers taxes!
DeFi lending, liquidity pools, yield farming, and governance tokens create complex tax scenarios. Each action (deposit, withdrawal, swap, claim) may be taxable. Track meticulously and consult professionals.
NFTs are taxed like other property. When you sell an NFT, calculate capital gain/loss from your cost basis. Note: Some NFTs may be classified as "collectibles" with a higher 28% maximum rate.
Gifting crypto isn't taxable to you (but may require gift tax filing over $18,000). Inherited crypto gets a "step-up" in basis to fair market value at death, potentially eliminating gains for heirs.
This calculator is for educational estimates only. It uses simplified tax rates (24% short-term, 15% long-term) and does not account for your specific income bracket, state taxes, net investment income tax (3.8% NIIT), or other individual factors. Actual tax rates vary from 0-37% for short-term and 0-20% for long-term gains.
Not Financial or Tax Advice: This tool provides general information and estimates only. It is not professional tax advice, financial advice, or legal counsel. Tax laws are complex and constantly changing.
Consult a Professional: For accurate tax calculations and compliance, consult with a licensed CPA, Enrolled Agent (EA), or tax attorney who specializes in cryptocurrency taxation. Each person's tax situation is unique.
No Liability: We are not responsible for any tax penalties, interest, audits, or financial losses resulting from using this calculator. Always verify calculations with tax professionals before filing returns.