Free crypto tax calculator. Estimate capital gains tax on cryptocurrency sales using FIFO or LIFO, classify short-term vs long-term gains, and calculate mining and staking income tax.
The Crypto Tax Calculator estimates the capital gains tax on your cryptocurrency sales and calculates income tax on mining and staking rewards. Cryptocurrency is treated as property by the IRS, so every sale, trade, or exchange is a taxable event that must be reported.
Short-term gains (held under 1 year) are taxed at your ordinary income rate, while long-term gains (held over 1 year) benefit from reduced 0%/15%/20% rates. This calculator supports FIFO and LIFO cost basis methods to help you find the most tax-efficient approach.
Enter your transaction details, annual income, and filing status to see your total crypto tax liability, compare cost basis methods, and understand the tax treatment of mining and staking income. Different cost basis methods like FIFO, LIFO, and specific identification can produce dramatically different tax outcomes for the same set of transactions, making the choice of method one of the most impactful decisions crypto investors face.
Crypto tax reporting is complex: every trade, swap, and DeFi transaction is potentially taxable. This calculator handles the most common scenarios — buying and selling, mining income, and staking rewards — and shows the tax difference between short-term and long-term holding. It also compares FIFO vs LIFO cost basis methods so you can choose the most favorable one.
Capital Gain = Sale Proceeds − Cost Basis − Fees ST Gain Tax = Gain × Marginal Ordinary Rate LT Gain Tax = Gain × LTCG Rate (0%/15%/20%) Mining/Staking Tax = Income × Marginal Rate + SE Tax (if mining as business)
Result: Capital gains tax: $4,500 | Mining tax: $1,100 | Total: $5,600
The $30K long-term gain is taxed at 15% for a single filer with $80K income ($4,500). Mining income of $5K is taxed as ordinary income at the 22% marginal bracket ($1,100). Total crypto tax liability is $5,600.
FIFO (First In, First Out) assumes you sell your oldest coins first. If you bought Bitcoin at $10K and later at $40K, a FIFO sale uses the $10K cost basis first, resulting in a larger gain. LIFO (Last In, First Out) uses the most recently purchased coins first. Specific Identification lets you choose which exact lot to sell, giving maximum tax control.
Crypto exchanges are required to report transactions via Form 1099-DA (starting in 2025-2026). You must report capital gains on Form 8949 and Schedule D. Mining and staking income goes on Schedule C (business) or Schedule 1 (hobby). The IRS has increased enforcement: the annual tax return now asks directly whether you received, sold, or disposed of digital assets.
Beyond holding periods and cost basis methods, consider: gifting appreciated crypto (no capital gains tax up to the annual exclusion), donating to charity (deduct fair market value without paying gains tax), and using tax-loss harvesting to offset gains with losing positions.
The IRS treats cryptocurrency as property. Selling, trading, or exchanging crypto creates a taxable event. Capital gains are taxed at short-term or long-term rates depending on the holding period. Receiving crypto as income (mining, staking, airdrops, payment) is taxed as ordinary income at fair market value when received.
FIFO (First In, First Out) sells your oldest coins first, which generally means more long-term gains and lower tax rates. LIFO (Last In, First Out) sells your newest coins first, which may result in smaller gains if prices recently dropped. FIFO is the IRS default if you don't specify.
Yes. Trading one cryptocurrency for another (e.g., BTC to ETH) is a taxable event. You realize the gain or loss on the disposed crypto. The cost basis of the new crypto is its fair market value at the time of the trade. This is true even if you never converted to fiat currency.
If you mine crypto as a business (regular activity with profit intent), the income may be subject to 15.3% self-employment tax in addition to income tax. Hobby miners report income on Schedule 1 without self-employment tax. The IRS looks at factors like frequency, equipment investment, and profit motive.
DeFi yields (lending, liquidity pools) are generally taxed as ordinary income when received. NFT sales follow the same capital gains rules as other crypto. Airdrops and hard fork tokens are taxed as ordinary income at fair market value when you receive dominion and control over them.
Historically, the wash sale rule technically only applied to securities, giving crypto traders an advantage. However, recent legislation is extending wash sale rules to digital assets. Check current rules for the tax year in question, as this is an evolving area of tax law.