Tax guide
How crypto capital gains tax works in the US
Updated 2026-08-18 · Educational only — not tax advice
The IRS treats cryptocurrency as property, not currency. Selling crypto for dollars, swapping one coin for another, or using crypto to buy goods or services can each be a taxable event. Gain or loss equals fair market value at disposal minus your adjusted basis in the units you spent.
Holding period still matters. Crypto held more than one year generally qualifies for long-term capital gains rates; shorter holds are taxed as ordinary income. High earners may also owe NIIT. Active traders often have many lots — our calculator estimates a single disposition for planning.
Recordkeeping
Keep acquisition dates, cost basis, fair market value at each disposal, and wallet or exchange records. Transfers between wallets you own are generally not taxable, but the basis and holding period carry over.
Most states that tax capital gains also tax crypto gains. Pair the crypto calculator with your state page and confirm current IRS digital asset FAQs. For harvesting losses, read how the wash-sale rule treats securities vs crypto.