Is cryptocurrency taxed as capital gains?

Yes. The IRS classifies cryptocurrency as property, not currency. Selling, trading, or spending crypto triggers capital gains tax. Gains on crypto held over 12 months qualify for long-term capital gains rates (0%, 15%, or 20%). Gains on crypto held 12 months or less are taxed as ordinary income at your marginal rate (up to 37%). Crypto received as income — mining, staking rewards, airdrops — is taxed as ordinary income at fair market value when received.

What is the wash sale rule for crypto?

As of 2026, the wash sale rule does NOT apply to cryptocurrency. The wash sale rule (which prevents claiming a tax loss if you repurchase the same security within 30 days) applies to stocks and securities but not to crypto under current IRS guidance. This means you can sell crypto at a loss to harvest the tax loss and immediately rebuy the same asset — a significant advantage over stock tax-loss harvesting. Congress has proposed extending wash sale rules to crypto but no law has passed as of 2026.

What is HIFO cost basis and why does it reduce crypto taxes?

HIFO (Highest In, First Out) assumes the coins with the highest purchase price are sold first, maximizing your cost basis and minimizing taxable gain. Compared to FIFO (which sells the oldest, potentially cheapest coins first), HIFO can dramatically reduce your tax bill. For example, if you bought Bitcoin at $10,000 and $60,000 and now sell at $70,000, HIFO uses the $60,000 basis (only $10,000 gain) versus FIFO using $10,000 basis ($60,000 gain). Consistent record-keeping is required to use HIFO.

Do I have to report crypto even if I did not cash out to dollars?

Yes. Any disposal of cryptocurrency is a taxable event — including trading BTC for ETH, paying for goods or services with crypto, or receiving crypto as payment. You must report fair market value in USD at the time of each transaction. The IRS includes a crypto question on Form 1040 that every taxpayer must answer. Failure to report crypto transactions is tax evasion, subject to penalties and potentially criminal prosecution.

What are the 2026 long-term capital gains rates for crypto?

2026 long-term capital gains rates: 0% for taxable income up to $49,450 (single) or $98,900 (married), 15% for income up to $545,500 (single) or $613,700 (married), 20% above those thresholds. The 3.8% Net Investment Income Tax applies on top for income above $200,000 single / $250,000 married. Maximum effective federal rate on long-term crypto gains is 23.8% for high earners, compared to 37% for short-term gains.

Not Financial Advice. CalcMoney provides calculators for educational and planning purposes only. Results are estimates and do not constitute financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Terms apply.

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Crypto Tax Calculator.

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Total realized gains across all positions: short-term and long-term breakdown
Federal income tax owed on short-term gains at your marginal rate
NIIT surcharge if your gains push net investment income above the threshold

IRS Notice 2014-21 / Rev. Rul. 2023-14

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Frequently Asked Questions

About the Crypto Capital Gains Tax Calculator

The IRS treats cryptocurrency as property. Every sale, trade, or use of crypto to buy goods or services is a taxable event.

Gains held under 12 months are short-term and taxed as ordinary income (10-37%). Gains held over 12 months are long-term and taxed at 0%, 15%, or 20% depending on your total income.

You must report all transactions on Form 8949.

High earners pay an additional 3. 8% NIIT on net investment income including crypto gains.

The threshold is $200,000 for single filers and $250,000 for married filing jointly. This means a high-income trader in the 20% long-term bracket effectively pays 23.

8% on gains, and someone in the 37% short-term bracket pays 40. 8%.

Tax-loss harvesting means selling a position at a loss to offset gains elsewhere, reducing your tax bill. Unlike stocks, crypto is NOT subject to the wash-sale rule, meaning you can sell at a loss and immediately rebuy the same coin.

This makes crypto tax-loss harvesting more powerful than for stocks. Losses can offset gains dollar-for-dollar and up to $3,000 of ordinary income per year.

No. Unrealized gains (crypto you own but have not sold) are not taxable.

You only owe tax when you sell, trade, or dispose of crypto. Transferring between your own wallets does not trigger a taxable event.

Receiving crypto as payment, mining rewards, or staking income is taxed as ordinary income at the time you receive it.

Cost basis is what you paid for the crypto including fees. If you bought 1 BTC for $30,000 and paid $50 in exchange fees, your cost basis is $30,050.

For dollar-cost averaging across multiple purchases, you can use FIFO (first in first out), HIFO (highest in first out, minimizes gains), or specific identification. HIFO is most tax-efficient and is allowed by the IRS but requires per-transaction records.

Important Disclaimer

CalcMoney provides educational financial calculators for informational purposes only. Results are mathematical estimates based on the inputs you provide and do not constitute financial, tax, legal, or investment advice. Actual results may vary based on lender terms, tax regulations, market conditions, and individual circumstances. Always consult a qualified financial professional before making major financial decisions.

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IRS Rev. Proc. 2025-32 (2026 annual inflation adjustments), checked Sep 8, 2026

This calculator's figures come from these sources. We re-check them when new figures are published.

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