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Crypto Tax Guide: 2025 and 2026 Rates and Rules
Yes, you likely have to pay crypto taxes. Profits from crypto are subject to capital gains taxes, just like stocks.
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When is crypto taxed?
Cryptocurrency is taxed when it is sold for a profit. This taxable profit is equal to the difference between your adjusted cost basis in the crypto and the amount you received in exchange for the virtual currency. You report the sale on your federal income tax return in U.S. dollars
You are only taxed on cryptocurrency if you sell it, whether for cash or for another cryptocurrency. So, if you bought $100 of cryptocurrency that is now worth $200 and you still own it, you aren’t taxed. The IRS requires brokers to report your crypto purchases and sales on Form 1099-DA. The broker will send you and the IRS a copy of the form.
Nerdy Tip: In 2025, brokers aren’t required to report cost basis information on Form 1099-DA, so you may need to determine it on your own. Starting in 2026 (for forms issued in early 2027), brokers will be required to include cost basis details. If you have questions about your 1099-DA and how to report it on your tax return, consider working with a qualified CPA or financial advisor.
How much are crypto taxes?
How much tax you pay on crypto depends on how long you owned it before selling, as well as your taxable income and your filing status. Capital gains are subject to either short-term tax rates (if you owned the crypto for year or less) or long-term tax rates (if you owned the crypto for more than a year).
If you held crypto for a year or less before selling, profits are treated as ordinary income and subject to the standard federal rates of 10% to 37%. If you held the crypto for more than a year before selling, your profits are subject to more favorable capital gains tax rates of 0%, 15% or 20%.
Selling crypto for a loss or moving wallets generally won't generate tax liability
What are the short-term capital gains tax rates on cryptocurrency in 2025 and 2026?
If you own cryptocurrency for one year or less before selling, you’ll pay the short-term capital gains tax on the profit. Short-term capital gains on crypto are taxed at ordinary income tax rates. These rates are usually higher than long-term capital gains tax rates.
Short-term crypto tax rates for 2025 (filed in 2026)
Tax rate
Single filer
Married filing jointly / Surviving spouse
Head of household
Married filing separately
10%
$0 to $11,925
$0 to $23,850
$0 to $17,000
$0 to $11,925
12%
$11,926 to $48,475
$23,851 to $96,950
$17,001 to $64,850
$11,926 to $48,475
22%
$48,476 to $103,350
$96,951 to $206,700
$64,851 to $103,350
$48,476 to $103,350
24%
$103,351 to $197,300
$206,701 to $394,600
$103,351 to $197,300
$103,351 to $197,300
32%
$197,301 to $250,525
$394,601 to $501,050
$197,301 to $250,500
$197,301 to $250,525
35%
$250,526 to $626,350
$501,051 to $751,600
$250,501 to $626,350
$250,526 to $375,800
37%
$626,351 or more
$751,601 or more
$626,351 or more
$375,801 or more
Source: IRS
Short-term crypto tax rates for 2026 (filed in 2027)
Tax rate
Single filer
Married filing jointly / Surviving spouse
Head of household
Married filing separately
10%
$0 to $12,400
$0 to $24,800
$0 to $17,700
$0 to $12,400
12%
$12,401 to $50,400
$24,801 to $100,800
$17,701 to $67,450
$12,401 to $50,400
22%
$50,401 to $105,700
$100,801 to $211,400
$67,451 to $105,700
$50,401 to $105,700
24%
$105,701 to $201,775
$211,401 to $403,550
$105,701 to $201,750
$105,701 to $201,775
32%
$201,776 to $256,225
$403,551 to $512,450
$201,751 to $256,200
$201,776 to $256,225
35%
$256,226 to $640,600
$512,451 to $768,700
$256,201 to $640,600
$256,226 to $384,350
37%
$640,601 or more
$768,701 or more
$640,601 or more
$384,351 or more
Source: IRS
What are the long-term capital gains tax rates on cryptocurrency in 2025 and 2026?
If you sell cryptocurrency after owning it for more than a year, you’ll pay long-term capital gains. The rates are 0%, 15% or 20% depending on your income and filing status.
Long-term crypto tax rates for 2025 (filed in 2026)
Tax rate
Single
Married filing jointly
Married filing separately
Head of household
0%
$0 to $48,350
$0 to $96,700
$0 to $48,350
$0 to $64,750
15%
$48,351 to $533,400
$96,701 to $600,050
$48,350 to $300,000
$64,751 to $566,700
20%
$533,401 or more
$600,051 or more
$300,001 or more
$566,701 or more
Short-term capital gains are taxed as ordinary income according to federal income tax brackets.
Long-term crypto tax rates for 2026 (filed in 2027)
Tax rate
Single
Married filing jointly
Married filing separately
Head of household
0%
$0 to $49,450
$0 to $98,900
$0 to $49,450
$0 to $66,200
15%
$49,451 to $545,500
$98,901 to $613,700
$49,451 to $306,850
$66,201 to $579,600
20%
$545,501 or more
$613,701 or more
$306,851 or more
$579,601 or more
Short-term capital gains are taxed as ordinary income according to federal income tax brackets.
It depends. It’s easier to manage if your exchange sends you the proper tax forms. Compiling the information can be time-consuming work, especially if you’ve made many trades. But tax software that connects to your crypto exchange, compiles the information and generates IRS Form 8949 for you can make this task easier.
Some complex situations probably require professional assistance. You might want to consider consulting a financial advisor or tax professional if:
You have many hundreds or thousands of transactions.
Your transactions are on-chain or if you used an exchange that isn’t based in the U.S.
The crypto you sold was purchased before 2016.
You just want peace of mind.
What if I sold cryptocurrency for a loss?
If you sell crypto for less than you bought it for, you can use those losses to offset gains you made elsewhere. For example:
You buy $100 of Crypto ABC and $100 of Crypto XYZ.
You later sell ABC for $75 (a loss of $25) and XYZ for $200 (a gain of $100).
Your potential taxable amount would be $75 ($100-$25).
If your losses exceed your gains, you can use the additional amount to reduce your taxable income, up to $3,000 in most cases. You can then use, or “carry over,” any remaining losses to offset gains in future years.
Will I be taxed if I change wallets?
No. Transferring cryptocurrency from one wallet you own to another you own does not count as selling it. You won’t be taxed.
Are my staking or mining rewards taxed?
Yes. The IRS considers staking rewards as income that must be reported, as well as any cryptocurrencies received through mining. Other forms of cryptocurrency transactions that the IRS says must be reported include:
Buying property, goods or services with crypto.
Receiving crypto for goods or services.
Receiving crypto after a hard fork (a change in the underlying blockchain).
Receiving an airdrop (a common crypto marketing technique).
Do I still pay taxes if I traded cryptocurrency for another cryptocurrency?
Yes. The IRS is clear about this: If you trade cryptocurrency for any other asset, including other cryptocurrencies, it’s a taxable event.
Is it easy to deal with crypto taxes myself?
It depends. It’s easier to manage if your exchange sends you the proper tax forms. Compiling the information can be time-consuming work, especially if you’ve made many trades. But tax software that connects to your crypto exchange, compiles the information and generates IRS Form 8949 for you can make this task easier.
Some complex situations probably require professional assistance. You might want to consider consulting a
You have many hundreds or thousands of transactions.
Your transactions are on-chain or if you used an exchange that isn’t based in the U.S.
The crypto you sold was purchased before 2016.
You just want peace of mind.
What if I sold cryptocurrency for a loss?
If you sell crypto for less than you bought it for, you can use those losses to offset gains you made elsewhere. For example:
You buy $100 of Crypto ABC and $100 of Crypto XYZ.
You later sell ABC for $75 (a loss of $25) and XYZ for $200 (a gain of $100).
Your potential taxable amount would be $75 ($100-$25).
If your losses exceed your gains, you can use the additional amount to reduce your taxable income, up to $3,000 in most cases. You can then use, or “carry over,” any remaining losses to offset gains in future years.
Will I be taxed if I change wallets?
No. Transferring cryptocurrency from one wallet you own to another you own does not count as selling it. You won’t be taxed.
Are my staking or mining rewards taxed?
Yes. The IRS considers staking rewards as income that must be reported, as well as any cryptocurrencies received through mining. Other forms of cryptocurrency transactions that the IRS says must be reported include:
Buying property, goods or services with crypto.
Receiving crypto for goods or services.
Receiving crypto after a hard fork (a change in the underlying blockchain).
Receiving an airdrop (a common crypto marketing technique).
Do I still pay taxes if I traded cryptocurrency for another cryptocurrency?
Yes. The IRS is clear about this: If you trade cryptocurrency for any other asset, including other cryptocurrencies, it’s a taxable event.
