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When you sell cryptocurrency, you'll owe capital gains taxes on any profits from the sale. This is the same tax you pay when you sell traditional investments, like stocks or mutual funds.
The tax rate you use depends on how long you held the cryptocurrency before selling. If you held it for a year or less, you'll pay the short-term rate. If you owned it for more then a year, you'll pay the long-term rate, which is lower.
You can estimate what your tax bill will look using the calculator below. You'll need to know the price you bought and sold your crypto for, as well as your taxable income for the year.
When it's time to file, you'll need to record the details of each individual crypto transaction. This can be done by hand, but it becomes cumbersome if you make hundreds of sales throughout the year. Unlike many traditional stock brokerages, it's not common for crypto exchanges and tax preparation software to communicate seamlessly. You can use crypto tax software, which organizes and moves crypto sales information to popular tax preparation software, like TurboTax.
» Calculate your crypto profits or losses