Get an estimate of your tax bill with our free Bitcoin and crypto tax calculator built for Australian investors.
To use our Bitcoin/crypto tax calculator, you’ll need to provide your total income for the year as well as the following information for your individual trades.
If you're looking to calculate your tax bill for the year, you'll need the following information.
Once you've entered your information, we'll estimate your tax liability!
Trying to keep track of the information you need to file your taxes can be difficult if you’re using multiple wallets and exchanges. If you’ve transferred your crypto, you may not know how much you originally paid to acquire it.
CoinLedger can help. The platform can automatically connect with hundreds of exchanges like CoinSpot and blockchains like Ethereum. You’ll be able to import your transactions and generate a comprehensive tax report in minutes.
More than 300,000 crypto investors use CoinLedger to take the stress out of tax season. Get started with a free account today.
Our free tool uses the following formula to calculate your capital gains and losses.
Once we’ve calculated your gain/loss, we’ll use the information you provided about your holding period and your income for the year to calculate your tax liability.
How is cryptocurrency taxed?
In Australia, cryptocurrency is subject to capital gains and ordinary income tax
When you dispose of cryptocurrency, you’ll recognize a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
When you earn cryptocurrency, you recognize income subject to ordinary income tax.
The calculator above is designed to help you recognize the tax impact of your crypto capital gains and losses.
The tax calculator calculates your taxes based on your income level. In Australia, your income and capital gains from cryptocurrency are taxed between 0-45%. Generally, the higher your income, the more taxes you pay.
If you dispose of your cryptocurrency after 12 months, only 50% of your gain will be considered taxable income. If you dispose of your cryptocurrency within 12 months, 100% of your gain will be considered taxable income.
Capital losses can offset your capital gains for the year. If you have a net loss for the year, you can carry it forward into future tax years.
Fees directly related to acquiring your crypto can be added to your cost of acquisition. Meanwhile, fees directly related to disposing of your crypto can be subtracted from your gross proceeds. In either case, fees reduce your total capital gain.
Trading one cryptocurrency for another is considered a taxable disposal. You’ll incur a capital gain or loss depending on how the price of the crypto you’re trading away has changed since you originally received it.
Here are a few strategies that can help you avoid your cryptocurrency taxes legally.