Free crypto tax calculator

Using our free crypto tax calculator is straightforward - simply enter your crypto transactions including buys, sells, NFTs, airdrops, liquidity pools, and staking rewards. The calculator will instantly provide you with an estimated tax position. For a comprehensive, IRS-compliant tax report that covers all your crypto activity across multiple wallets and exchanges, sign up for a full account.

1. Select the crypto activities that you want to calculate profits for

Our crypto profit calculator can calculate the profits for the following crypto investment activities: Buying and selling (ie, trading), NFTs, airdrops, staking, liquidity pools, and leverage trading. You can calculate the profits for a single activity (i.e., a single trade) or combine them to calculate your overall profits across all activities. Simply select the activity you would like to calculate and then fill in the details. If you would like to calculate multiple transactions for a single activity, press “Add transaction” and add the details for each transaction.

Note: Profits before and after tax. If you would like a more accurate idea of your profits after tax, then you will want to add all of your transactions for the tax year. If you are not interested in profits after tax or just want to calculate the profit for a single transaction, then enter your transactions as desired and refer to the “Gains” amount at the end which calculates the total profit before tax.

2. Enter the details for each activity

Enter the details for each transaction you want to include in the calculations. You can include several transactions and transaction types in a single calculation.

Note: Make sure to use the same fiat currency for all transactions. This should be the fiat currency you want to calculate your profit in.

Buying and selling

1. Select the cryptocurrency you want to calculate profit for (eg, BTC, ETH, SOL).
2. Enter the acquisition value, which is how much you purchased it for in fiat currency (eg, USD, AUD, GBP).
3. Enter the disposal value, which is how much you sold it for in fiat currency.
4. Select whether you held the crypto for 12 months or less before selling it. This will affect the amount of tax owed, and, therefore, your overall profits after tax

NFTs

1. Enter the NFT you sold.
2. Enter the acquisition value. This should be its value in fiat currency at the time you purchased it, even if you paid for it using cryptocurrency.
3. Enter the disposal value, which is how much you sold it for in fiat currency.
4. Select whether you held the crypto for 12 months or less before selling it. This will affect the amount of tax owed, and, therefore your overall profits after tax.

Airdrops

1. Enter the cryptocurrency you received from the airdrop.
2. Enter the fair market value of the airdrop at the time you received it, in fiat currency.

Staking

1. Enter the cryptocurrency you staked
2. Enter the value of the staking rewards you received, in fiat currency.

Liquidity pooling

1. Enter the currency pair for the liquidity pool.
2. Enter the value of the rewards you received from the pool, in fiat currency.

Leverage trading

1. Enter the cryptocurrency you traded.
2. Enter the value of the profit or loss from the trade, in fiat currency.

3. Enter your annual income

Enter your taxable income for the year from your salary and any other income streams.

4. Get your results

You can find an estimate of your tax liability in the Tax Outcome section. This section updates automatically as you enter the details for each transaction. Each section indicates the following:

• Gains: The net gains or losses from your crypto transactions before tax.
• Taxable Gains: The gains from your crypto transactions considering any discounts for long-term holding.
• Taxable Income: Your total taxable income for the year.
• Tax Outcome: The total tax estimate based on your taxable income and crypto gains.

5. Accurately calculate your tax with Crypto Tax Calculator

If you traded crypto in the past financial year, then you will need to submit your crypto related activities on your tax return. While simple tools like this free calculator are helpful for getting an estimate of your taxes, they are not accurate and not a substitute for professional tax software like Crypto Tax Calculator. Crypto Tax Calculator provides full support for unique IRS reporting requirements, including US specific rules around personal-use, mining, staking, and airdrops. It integrates with TurboTax and provides you with all the forms you need, such as Form 8949, Form 1040 etc. Simply import your wallets and exchange accounts and the calculator will do the rest – categorising transactions, identifying capital gains and income activities, and even identify opportunities for savings like tax-loss harvesting. Creating an account is free, and you only have to pay if you want to generate a tax report.

In the United States, the IRS treats cryptocurrency as property, not currency. Property includes things such as cryptocurrencies, homes, cars and art works. This means that cryptocurrency is often subject to capital gains tax, however, sometimes it may be subject to income tax, depending on the nature of the activity you performed.

• Capital Gains Tax: A capital gain occurs when you sell, trade, or dispose of crypto for more than you paid for it. Tax rates vary depending on how long you held the asset before selling it.
• Short-term: Gains are classified as short-term if you held the asset for one year or less before disposing of it.
• Long-term: Gains are classified as long-term if you held the asset for more than one year before disposing of it.
• Income Tax: Income tax applies to income earned from mining, staking, or receiving crypto as payment is for work. The tax rate depends on your annual income bracket.

Your cryptocurrency tax liability depends on multiple factors.

• Location: Each state has different tax rules. While federal taxes apply nationwide, your state’s tax policies could influence your overall liability.
• Filing status: Whether you file as single, married, or head of household affects your tax brackets and potential deductions.
• How long you held before selling: Long-term investments (held over a year) are taxed at lower rates than short-term investments.
• Fees: Transaction fees can reduce your taxable gains. Accurately deduct these costs to minimize your liability.
• Annual income: Your total income, including crypto earnings, determines your tax bracket and the rate applied to your gains or income.

You can reduce your crypto tax burden through several strategic methods:

• Tax-loss harvesting by selling underperforming assets to offset gains.
• Holding assets for over one year to qualify for long-term capital gains rates
• Considering tax-efficient inventory methods like FIFO or LIFO methods where permitted

Our free crypto tax calculator gives you a quick estimate of potential tax liability but it should not replace specialised software. For detailed tax reports ready for TurboTax or your accountant, including Forms 8949 and Schedule D, you’ll need our full-featured Crypto Tax Calculator.

Crypto Tax Calculator stands out as being the best bitcoin tax calculator because it integrates with thousands exchanges and wallets, supports IRS accounting rules and helps identify ways to reduce your tax.

Capital gains occur when you sell, trade, or dispose of a capital asset for more than its purchase price. Capital assets include property such as cryptocurrencies, homes, cars and art works. In the context of cryptocurrency, income includes crypto that was earned through activities like mining, staking or receiving payment for work. A key difference between capital gains and income is that capital gains are subject to separate rates depending on how long you held the asset, income is taxed at your ordinary income tax rate.

Long-term investments are held for more than a year before selling and are taxed at lower rates (0%, 15%, or 20%). Short-term investments are held for a year or less and are taxed at your ordinary income tax rate, which can range from 10% to 37%. Holding assets longer can significantly reduce your tax liability.

Yes, cryptocurrency transactions are reportable to tax authorities. The IRS treats cryptocurrency as property, meaning you must report capital gains or losses from trading, as well as income from mining, staking, airdrops, and other crypto-related activities. Failure to report crypto transactions can result in penalties and interest charges.

Tax authorities are increasingly monitoring cryptocurrency transactions through various means, including reporting requirements for major exchanges, blockchain analysis tools, and information sharing agreements. With the Infrastructure Bill requiring crypto exchanges to report transactions to the IRS starting 2024, maintaining accurate records and reporting is more important than ever.