How crypto capital gains tax works
The IRS treats cryptocurrency as property, not currency. Every time you sell, trade, or spend crypto, you trigger a taxable event. Your gain or loss is the difference between what you received and your original cost basis.
Short-term vs long-term rates
If you hold for 12 months or less, the gain is short-term and taxed at your regular income rate (10–37%). Hold for more than 12 months and it's long-term, taxed at a preferential rate of 0%, 15%, or 20% depending on total income. The difference can be substantial — this is why timing a sale matters.
2026 long-term capital gains rates
- 0% — single filers under $48,350; married under $96,700.
- 15% — single $48,350–$533,400; married $96,700–$600,050.
- 20% — above those thresholds.
How to reduce your crypto tax bill
- Hold more than a year before selling to qualify for long-term rates.
- Harvest losses — sell coins that are down to offset gains from winning trades.
- Specific identification — when selling part of a lot, you can identify which coins you're selling (e.g., the highest-cost lot) to minimize gain.
Frequently asked questions
Do I owe taxes if I just hold and don't sell?
No. Holding crypto is not a taxable event. You only owe tax when you sell, trade, or otherwise dispose of it.
What if I moved crypto between my own wallets?
Transferring between your own wallets is not a taxable event. You only trigger taxes when you sell or exchange for another asset.
Is this data saved?
No. Everything runs locally in your browser. Nothing is stored or sent anywhere.
For educational and estimation purposes only; not tax advice. Crypto tax rules are complex and change frequently. Consult a qualified tax professional or crypto tax software for your actual filing.