Capital Gain
$10,000
Total Tax
$3,130
Net Gain After Tax
$6,870
How is crypto taxed by the IRS?
The IRS treats cryptocurrency as property, not currency. This means every sale, trade, or exchange of crypto is a taxable event. If you sell crypto for more than you paid, you owe capital gains tax. If you sell for less, you can claim a capital loss. The tax rate depends on how long you held the crypto before selling.
What is the difference between short-term and long-term crypto gains?
If you hold crypto for 12 months or less before selling, the gain is short-term and taxed at your ordinary income tax rate (up to 37%). If you hold for more than 12 months, the gain is long-term and taxed at preferential rates of 0%, 15%, or 20% depending on your total income.
Do I owe tax on crypto swaps?
Yes. Trading one cryptocurrency for another (e.g., Bitcoin for Ethereum) is a taxable event. You must calculate the gain or loss based on the fair market value at the time of the swap. This applies even if you never convert to USD.
What about staking rewards and mining income?
Staking rewards and mined crypto are taxed as ordinary income at the fair market value on the date you receive them. When you later sell the staked or mined crypto, any additional gain from the income amount is taxed as a capital gain (short-term or long-term depending on holding period).
IRS-Aligned: This calculator uses 2025 IRS capital gains rates and NIIT thresholds. Cryptocurrency taxation can be complex with multiple transactions -- consult a tax professional for comprehensive reporting.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS — Digital Assets Guidance
- IRS Topic 409 — Capital Gains and Losses
- IRS Publication 544 — Sales and Other Dispositions of Assets
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.