US Crypto Tax Calculator
Estimate your US federal crypto tax using IRS 2026 brackets. Applies short-term ordinary income rates for holdings under 12 months, long-term 0% / 15% / 20% capital gains rates for holdings over 12 months, and the Net Investment Income Tax. Runs entirely in your browser — your figures stay private.
How the IRS Taxes Crypto
The IRS treats cryptocurrency as property, not currency. Every disposal — selling for USD, swapping one token for another, using crypto to pay for goods or services, or gifting above the annual exclusion — is a taxable event. You calculate gain or loss as proceeds minus cost basis (what you paid plus fees and any capitalised costs).
The tax rate depends on your holding period. Short-term gains (assets held 12 months or less) are taxed at your ordinary income tax rates (10% to 37% for 2026). Long-term gains (held more than 12 months) get preferential rates of 0%, 15%, or 20% depending on your taxable income.
Short-Term vs Long-Term Capital Gains
The 12-month holding line is the single biggest lever for US crypto investors. A $10,000 short-term gain at the 24% bracket costs $2,400 in tax. The same gain held 12 months and one day, with taxable income of $100,000 single, drops to the 15% long-term rate and $1,500 in tax — a 37.5% saving.
High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on top of regular capital gains tax when modified AGI exceeds $200,000 single or $250,000 married filing jointly. This applies to the lesser of your net investment income or the MAGI amount over the threshold.
Form 8949 and Schedule D
Every crypto disposal must be listed on Form 8949 with acquisition date, disposal date, proceeds, cost basis, and gain or loss. Short-term dispositions go in Part I, long-term in Part II. Totals flow to Schedule D, which summarises all capital gains and losses for the year. Schedule D then flows to Form 1040.
Starting 2025 tax year, US brokers (Coinbase, Kraken, etc.) issue Form 1099-DA reporting your crypto proceeds to the IRS. Your return must match these filings or you risk an automated under-reporter notice.
Wash Sales, Losses, and Carry-Forwards
Current IRS rules do not apply the wash-sale rule to crypto (though legislation has been repeatedly proposed). Capital losses first offset capital gains of the same type, then the opposite type, then up to $3,000 of ordinary income per year ($1,500 if married filing separately). Excess losses carry forward indefinitely.
Last updated: April 2026. Based on IRS Notice 2014-21, Rev. Rul. 2019-24, and 2026 inflation-adjusted brackets. Estimate only — not tax advice.
Frequently Asked Questions
How is crypto taxed in the US?
The IRS treats crypto as property. Every sale, swap, payment, or disposal is a taxable event. Short-term gains (held 12 months or less) are taxed at ordinary income rates from 10% to 37%. Long-term gains (held over 12 months) are taxed at 0%, 15%, or 20% based on taxable income.
What is the difference between short-term and long-term capital gains?
Short-term applies when you hold the crypto for 12 months or less and is taxed at your ordinary income rate. Long-term applies when you hold for more than 12 months and unlocks the preferential 0%/15%/20% capital gains brackets — typically cutting your tax bill in half or more.
Do I pay tax on crypto-to-crypto trades?
Yes. The IRS treats every swap (for example BTC to ETH) as a disposal of the first coin at its fair market value in USD. You must calculate the gain or loss even though no dollars move through your bank account.
What form do I file for crypto taxes?
Every disposal goes on Form 8949 (short-term in Part I, long-term in Part II). Totals flow to Schedule D and then into your Form 1040. Starting with the 2025 tax year, US exchanges also issue Form 1099-DA to report your proceeds to the IRS.
Does the wash sale rule apply to crypto?
As of 2026, the wash sale rule does not apply to cryptocurrency because it is property, not a security. This means you can sell at a loss and buy back immediately to harvest tax losses. Congress has repeatedly proposed closing this loophole, so rules may change.
Can I deduct crypto losses on my taxes?
Yes. Capital losses offset capital gains. Excess losses offset up to $3,000 of ordinary income per year ($1,500 if married filing separately). Any remaining loss carries forward indefinitely to future years until fully used.