Crypto Tax Calculator

A plain-language overview of crypto tax rules in most major jurisdictions.

In most jurisdictions — including the US, UK, EU, Australia and Canada — cryptocurrency is treated as a capital asset, not currency. This means every disposal (sale, swap, spend) is a taxable event that may generate a capital gain or loss. The gain is calculated as the difference between what you received (proceeds) and what you originally paid (cost basis).

The most important variable is holding period. In the US, the IRS taxes short-term gains (held under 12 months) at ordinary income rates — potentially up to 37%. Long-term gains (over 12 months) are taxed at 0%, 15%, or 20% depending on your total income. This preferential rate is one of the most powerful legal tools available to crypto investors: simply holding for one additional day past the 12-month mark can meaningfully reduce your tax bill.

Not every crypto activity triggers a tax bill. Here's how common events are treated.

Holding crypto for over 12 months may qualify you for significantly lower rates.

2024 US rates. NIIT (3.8%) may also apply at higher incomes. Consult a tax professional for your specific situation.

A legal strategy that can materially reduce your annual tax liability.

Unlike stocks, crypto is not subject to wash-sale rules in the US (as of 2024). This means you can sell a crypto asset at a loss, immediately repurchase it, and still claim the loss to offset other capital gains. This makes year-end tax-loss harvesting particularly powerful for crypto portfolios.

For example: you have $10,000 in Bitcoin gains but also hold Ethereum at a $4,000 unrealised loss. Selling the ETH crystallises the $4,000 loss, reducing your net taxable gain to $6,000. You can buy ETH back immediately and re-establish the position. At a 15% tax rate, this saves you $600 in tax — with no change to your portfolio exposure.

This strategy works best when you have offsetting gains and losses within the same tax year, and when done before December 31st.