Free Crypto & Bitcoin Tax Calculator
Crypto Capital Gains Tax Calculator
Estimate Bitcoin and cryptocurrency capital gains or losses, cost basis, and potential U.S. federal tax using purchase amount, sale amount, transaction fees, holding period, filing status, and taxable income.
Enter your crypto transaction
Estimate your cryptocurrency capital gain or loss and potential U.S. federal tax.
Enter the amount originally paid for the cryptocurrency.
Enter the amount received when the cryptocurrency was sold or disposed of.
Enter estimated taxable income before adding this crypto gain. This helps estimate how a long-term gain falls across federal capital gains rate ranges.
Crypto Capital Gains Results
Enter your crypto transaction
Your estimated crypto gain or loss and potential federal tax will appear here.
How to use this crypto tax calculator
Enter the amount paid for the cryptocurrency, applicable purchase fees, sale or disposal value, selling fees, and holding period. For long-term gains, the calculator can also use filing status and taxable income to estimate potential federal capital gains tax.
The calculator estimates adjusted cost basis, net disposal proceeds, capital gain or loss, and a simplified potential federal tax amount.
How crypto capital gains are calculated
For cryptocurrency held as a capital asset, a gain or loss generally depends on the difference between the amount realized from the disposition and the adjusted basis of the digital asset.
Crypto Capital Gain Formula
Gain or Loss = Net Disposal Proceeds − Adjusted Cost Basis
This calculator uses entered purchase costs when estimating basis and entered disposition costs when estimating net proceeds.
How the IRS treats cryptocurrency
For U.S. federal income tax purposes, digital assets such as Bitcoin and other cryptocurrencies are generally treated as property rather than currency.
General federal tax principles that apply to property transactions therefore also apply to many transactions involving digital assets.
Buying and holding crypto is different from disposing of it
Simply purchasing cryptocurrency with U.S. dollars and holding it generally does not by itself create a capital gain or loss. Selling, exchanging, or otherwise disposing of a digital asset can create a reportable transaction.
Bitcoin tax calculator
The same basic capital gain calculation can apply to Bitcoin held as a capital asset. If you buy Bitcoin and later sell or dispose of it, compare your adjusted basis with the amount realized from the disposition.
For example, if Bitcoin was acquired for $20,000 including applicable acquisition costs and later disposed of for net proceeds of $35,000, the simplified capital gain would be $15,000.
Short-term vs. long-term crypto capital gains
The length of time you hold a digital asset can affect the federal tax treatment of a capital gain.
SHORT-TERM
Held for 1 year or less
A capital gain from cryptocurrency held for one year or less is generally a short-term capital gain and is generally subject to ordinary federal income tax rates.
LONG-TERM
Held for more than 1 year
A capital gain from cryptocurrency held for more than one year is generally a long-term capital gain and may qualify for preferential federal capital gains rates.
What is crypto cost basis?
Cost basis generally begins with the cost of acquiring the cryptocurrency in U.S. dollars. Depending on the transaction, certain qualifying transaction costs can affect the basis.
Simplified cost basis used by this calculator
Adjusted Cost Basis = Purchase Amount + Entered Purchase Costs
Actual digital asset basis can become more complicated when cryptocurrency was received through mining, staking, rewards, gifts, inheritance, exchanges, or multiple purchases.
Do crypto transaction fees affect capital gains?
Transaction costs associated with acquiring or disposing of a digital asset can affect the gain or loss calculation depending on the transaction and applicable tax rules.
This calculator provides fields for purchase and selling costs so they can be reflected in its simplified basis and net proceeds calculations.
Crypto capital gains tax example
Suppose cryptocurrency was purchased for $30,000 with $300 in purchase costs and later sold for $50,000 with $500 in disposition costs.
Purchase Amount: $30,000
Purchase Costs: $300
Adjusted Cost Basis: $30,300
Sale Amount: $50,000
Selling Costs: $500
Net Sale Proceeds: $49,500
Capital Gain: $19,200
Crypto transactions that may create taxable events
Cryptocurrency taxes are not limited to converting crypto into U.S. dollars. Other types of digital asset dispositions can also require gain or loss calculations.
Selling Crypto for Cash
Selling Bitcoin or another digital asset for U.S. dollars can create a capital gain or loss.
Crypto-to-Crypto Trades
Exchanging one digital asset for another can involve a taxable disposition of the digital asset given up.
Buying Goods With Crypto
Using cryptocurrency to purchase goods or services can involve a disposition requiring a gain or loss calculation.
Other Digital Asset Dispositions
Other sales, exchanges, or transfers of ownership can also have federal tax consequences depending on the facts.
Are crypto-to-crypto trades taxable?
Exchanging one digital asset for another can be a taxable disposition for U.S. federal income tax purposes.
For example, exchanging Bitcoin for another cryptocurrency can require you to determine the amount realized on the Bitcoin disposed of and compare that amount with its adjusted basis.
Is spending cryptocurrency taxable?
Using cryptocurrency to pay for goods or services can constitute a disposition of the digital asset. A gain or loss may therefore arise based on the asset's adjusted basis and the value received in the transaction.
What if I bought Bitcoin or crypto at different prices?
Many investors buy the same cryptocurrency multiple times at different prices. Each acquisition can create a separate group of units with its own acquisition date and basis.
Determining which units were sold can affect both cost basis and holding period. This calculator is designed for a simplified single-transaction estimate and does not automatically track multiple digital asset lots.
How are crypto capital losses calculated?
If net proceeds from a digital asset disposition are lower than adjusted cost basis, the transaction generally produces a capital loss when the asset was held as a capital asset.
Capital losses can interact with other capital gains and applicable federal loss deduction and carryover rules. This calculator does not perform a complete Schedule D capital gain and loss netting calculation.
Does this crypto tax calculator include staking or mining?
No. Cryptocurrency received through mining, staking, rewards, payments for services, or similar activities can involve income tax rules in addition to later capital gain or loss calculations.
This calculator focuses on a simplified purchase-and-disposition capital gains scenario.
What is Form 1099-DA?
Form 1099-DA is an IRS information form for certain digital asset broker transactions. Taxpayers may receive the form from brokers reporting digital asset proceeds.
Receiving or not receiving an information form does not by itself determine whether a digital asset transaction must be reported. Taxpayers remain responsible for reporting taxable digital asset transactions under applicable federal tax rules.
Keep your own crypto transaction records
Maintain records of purchases, sales, exchanges, dates, quantities, transaction values, basis, and other information needed to support amounts reported on your federal tax return.
Where are crypto capital gains reported?
Individuals generally report sales and other capital transactions involving digital assets using the applicable IRS forms and instructions. Depending on broker reporting and the transaction, Form 8949 and Schedule D can be involved in reporting capital gains and losses.
Does this calculator include the Net Investment Income Tax?
No. Certain taxpayers can be subject to the 3.8% Net Investment Income Tax on applicable net investment income when statutory income thresholds are exceeded.
This calculator does not automatically calculate NIIT, state taxes, or other additional taxes.
Simplified federal crypto tax estimate
This calculator does not automatically include state taxes, NIIT, capital loss carryovers, mining or staking income, rewards, gifts, inherited digital assets, multiple tax lots, complex basis adjustments, or other specialized digital asset tax rules.
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How do I calculate crypto capital gains?
Subtract the adjusted basis of the cryptocurrency from the amount realized when it is sold or otherwise disposed of. A positive result generally represents a capital gain when the digital asset was held as a capital asset.
Is Bitcoin taxable when I sell it?
Selling Bitcoin held as a capital asset can create a reportable capital gain or loss based on the difference between the amount realized and adjusted basis.
Is buying Bitcoin taxable?
Simply buying digital assets with U.S. dollars and holding them generally does not by itself create a capital gain or loss. Later sales, exchanges, or other dispositions can have tax consequences.
Are crypto-to-crypto trades taxable?
Exchanging one digital asset for another can involve a taxable disposition of the digital asset given up and may require a capital gain or loss calculation.
Is spending crypto taxable?
Paying for goods or services with cryptocurrency can constitute a disposition of the digital asset and may create a capital gain or loss.
What is the difference between short-term and long-term crypto gains?
Digital assets held for one year or less before disposition generally produce short-term capital gain or loss. Assets held for more than one year generally produce long-term capital gain or loss.
Do crypto transaction fees affect cost basis?
Certain transaction costs can affect basis or the amount realized depending on the transaction. This calculator includes entered purchase and selling costs in its simplified calculation.
Can crypto losses offset capital gains?
Capital losses can generally interact with capital gains under federal capital gain and loss netting rules. This calculator does not perform a complete Schedule D netting or loss carryover calculation.
Does this calculator include mining and staking income?
No. It focuses on simplified capital gains from disposing of digital assets. Mining, staking, rewards, and payments can involve separate income and basis rules.
What is Form 1099-DA?
Form 1099-DA is used for certain broker reporting of digital asset transactions. You may still have reporting obligations even when you do not receive the form.
Where are crypto capital gains reported?
Individuals generally report applicable digital asset capital transactions using IRS forms and instructions that can include Form 8949 and Schedule D.
Does this calculator include state crypto taxes?
No. It provides a simplified U.S. federal estimate. State and local tax treatment can vary.
Federal crypto tax estimate only
This Crypto Capital Gains Tax Calculator provides simplified estimates for general informational and educational purposes only. It does not constitute tax, legal, financial, or investment advice. Actual tax liability may differ because of other gains or losses, taxable income, state taxes, NIIT, digital asset basis calculations, transaction identification, mining, staking, rewards, gifts, inherited assets, and other tax rules.