Crypto Tax Estimator
Estimate US federal capital gains tax on a crypto sale. Enter purchase price, sale price, holding period, and tax bracket. Illustrative — not tax advice.
Added May 31, 2026
Input
Result
Enter a value for purchase price (cost basis) to see your result.
How it works
Estimates US federal capital gains tax on a cryptocurrency sale. Short-term gains (held ≤ 12 months) are taxed at ordinary income rates; long-term gains (held > 12 months) qualify for preferential 0%, 15%, or 20% rates. Illustrative only — not tax advice.
Formula
Capital gain = Sale proceeds − Cost basis − Fees | Tax = Capital gain × applicable rate
- Sale proceeds
- Total amount received from the sale
- Cost basis
- Original purchase price including buy fees
- Fees
- Total trading fees (added to basis for buys, subtracted from proceeds for sells)
- Applicable rate
- Short-term: ordinary income rate; Long-term: 0%, 15%, or 20% based on income
Step by step
- 01Subtract the purchase price and fees from the sale price to find the capital gain.
- 02Determine if the holding period is short-term (≤ 12 months) or long-term (> 12 months).
- 03Short-term gains are taxed at your ordinary income bracket rate.
- 04Long-term gains are taxed at the preferential capital gains rate (0%, 15%, or 20%) based on income.
- 05Multiply the gain by the applicable rate to estimate federal tax owed.
Examples
$18,000 buy → $27,500 sell · long-term · 22% bracket
Gain = $27,500 − $18,000 − $50 = $9,450. Long-term rate for 22% bracket = 15%. Estimated tax = $9,450 × 15% = $1,418.
Inputs
- Purchase price (cost basis):
- 18000
- Sale price (proceeds):
- 27500
- Total fees (buy + sell):
- 50
- Holding period:
- long
- Ordinary income tax bracket (US federal):
- 22
Result
- Capital gain / (loss):
- 9450
Frequently asked questions
Is crypto taxed as property or currency?
In the US, the IRS treats cryptocurrency as property, not currency. This means every disposal — selling, trading one coin for another, or spending crypto on goods — is a taxable capital gain or loss event, calculated just like selling a stock.
What is the difference between short-term and long-term capital gains?
Short-term gains (held 12 months or less) are taxed at ordinary income rates (10–37%). Long-term gains (held more than 12 months) are taxed at preferential rates: 0%, 15%, or 20% depending on your total taxable income. Holding for over a year can dramatically reduce your tax bill.
What is cost basis in crypto?
Cost basis is what you paid for your crypto, including purchase fees. When you sell, your taxable gain is the sale price minus cost basis. If you bought at multiple prices (e.g. through DCA), you need a cost basis method (FIFO, HIFO, or specific identification) to determine which lots you're selling.
Do I owe tax if I lost money on crypto?
No — a capital loss has no tax owed and can actually reduce your tax bill. Crypto losses can offset capital gains from any source, and if net losses exceed gains, up to $3,000 can offset ordinary income per year (with remaining losses carried forward). This is the basis of 'tax-loss harvesting.'
What if I haven't sold — do I owe tax just for holding?
No. Simply buying and holding crypto is not a taxable event, even if the price has risen significantly. Tax is only triggered when you dispose of the crypto — by selling, trading, or spending it.