Crypto tax calculator
Estimate capital gains tax on your crypto trades with FIFO or LIFO accounting, short-term and long-term classification, and state tax.
Transactions
- Type
- Type
Tax settings
Sets your federal marginal rate for short-term gains.
Key insights
FIFO vs LIFO impact
The accounting method you choose can significantly affect your tax bill.
- FIFO often results in more long-term gains and lower tax rates in a rising market.
- LIFO uses the most recent (often higher) cost basis, which can reduce short-term gains.
- Try switching between methods above to compare your tax outcomes.
Tax-loss harvesting
Strategically realize losses to reduce your tax burden.
- Capital losses offset capital gains dollar-for-dollar.
- Excess losses offset up to $3,000 of ordinary income per year.
- Remaining losses carry forward to future tax years indefinitely.
- No wash sale rule currently applies to crypto (check for updates).
Reporting requirements
Stay compliant with IRS crypto reporting rules.
- Report all crypto sales on Form 8949 and Schedule D.
- Answer the crypto question on Form 1040 page 1.
- Keep records of all transactions, including dates and cost basis.
- Brokers issue Form 1099-DA for transactions from tax year 2025 onward.
Frequently asked questions
- How is cryptocurrency taxed in the United States?
- The IRS treats cryptocurrency as property, not currency. Every time you sell, trade, or dispose of crypto, it is a taxable event. Short-term gains (held less than one year) are taxed as ordinary income at your marginal tax rate. Long-term gains (held one year or more) benefit from lower capital gains rates of 0%, 15%, or 20% depending on your income. Additionally, receiving crypto as payment, mining income, and staking rewards are taxed as ordinary income at the fair market value when received.
- What is the difference between FIFO and LIFO for crypto taxes?
- FIFO (First In, First Out) assumes the earliest purchased coins are sold first, which often results in long-term capital gains and lower tax rates if prices have risen over time. LIFO (Last In, First Out) assumes the most recently purchased coins are sold first, which can be beneficial in a rising market to realize higher cost basis and lower short-term gains. The IRS allows both methods, but you must be consistent. FIFO is the default method used by most exchanges and is generally recommended unless you have a specific tax strategy in mind.
- What is crypto tax-loss harvesting and how does it work?
- Tax-loss harvesting involves selling cryptocurrency at a loss to offset capital gains from other trades. You can offset gains dollar-for-dollar with losses, and if your losses exceed your gains, you can deduct up to $3,000 against ordinary income per year, carrying forward any remaining losses to future years. Unlike stocks, crypto is currently not subject to the wash sale rule, meaning you can sell at a loss and immediately repurchase the same cryptocurrency. However, proposed legislation may close this loophole, so check current regulations.
- How do I report crypto taxes to the IRS?
- You must report cryptocurrency transactions on IRS Form 8949, listing each sale or disposal with dates acquired/sold, proceeds, cost basis, and gain or loss. The totals then flow to Schedule D of your Form 1040. Starting with tax year 2025, brokers are required to issue Form 1099-DA for crypto transactions. You must answer "yes" to the crypto question on page 1 of Form 1040 if you had any crypto transactions during the tax year. Failure to report can result in penalties, interest, and potential criminal prosecution.
- Are NFT and DeFi transactions taxable?
- Yes. Selling an NFT triggers capital gains tax based on the difference between your sale price and purchase price. Creating and selling NFTs may be treated as ordinary income. DeFi transactions such as swapping tokens, providing liquidity, and yield farming are all taxable events. Receiving tokens from airdrops, staking rewards, and liquidity mining is treated as ordinary income at the fair market value when received. The complexity of DeFi means careful record-keeping is essential for accurate tax reporting.
Important disclaimer
This calculator provides estimates for educational purposes only and should not be considered tax advice. Cryptocurrency tax rules are complex and subject to change. Your actual tax liability may differ based on specific circumstances including but not limited to DeFi transactions, airdrops, staking income, NFTs, and state-specific regulations. Consult a qualified tax professional or CPA experienced in cryptocurrency taxation for personalized advice.
By the numbers
What the data says
- July 2025
14%
US adults who own cryptocurrency
Source: Gallup - 2026 tax year
$32,200
Standard deduction for married couples filing jointly in 2026
$16,100 for single filers and $24,150 for heads of household
Source: IRS, Revenue Procedure 2025-32 - Latest state ranking
0.28% to 2.38%
Effective property tax rates by state, from Hawaii to New Jersey
Share of home value paid in tax each year
Source: Tax Foundation, How High Are Property Taxes in Your State?
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
Need personalized crypto tax guidance?
Warren AI can help you understand your crypto tax obligations and develop strategies to minimize your tax burden legally and effectively.