Calculate your capital gains tax in your location with our free calculator.
Crypto tax calculators like CoinLedger can help you generate a comprehensive tax report in minutes.
Remember, the calculator featured above is a simplified version to give a rough estimate of your taxes owed. If you’re looking to find the total tax impact for all of your cryptocurrency transactions across your entire portfolio, CoinLedger can help.
CoinLedger directly connects to hundreds of exchanges like Coinbase and wallets such as MetaMask. Simply connect your accounts and let CoinLedger calculate your gains and losses across all of your transactions. Once you’re done importing, you can generate a comprehensive crypto tax report with the click of a button.
Today, over 300,000+ crypto investors leverage CoinLedger to automate the entire crypto tax calculation process. Sign up for a free account here.
Wondering how our free crypto tax tool works? Let’s answer a few frequently asked questions.
How is cryptocurrency taxed?
In the United States, cryptocurrency is considered a form of property and is subject to capital gains and income tax.
When you dispose of your cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it. Examples of disposals include selling your crypto or trading it for another cryptocurrency.
When you earn cryptocurrency, you’ll recognize income based on the fair market value of your crypto at the time of receipt. Examples of crypto income include mining rewards, staking rewards, and airdrops.
Our free crypto tax tool is designed to help you estimate the tax impact of your cryptocurrency disposals only.
How do you calculate my capital gains?
Our free tool calculates your capital gains through the following formula.
Once you’ve entered your capital gains and losses, we’ll estimate your tax bill using up-to-date federal and state tax rates for long-term and short-term capital gains.
Do fees reduce my tax bill?
Fees directly related to buying cryptocurrency can increase your cost basis (your cost for acquiring your crypto). Fees directly related to selling your crypto can reduce your gross proceeds (what you receive when you dispose of crypto). In either case, fees reduce your total capital gain.
Why is my annual income important?
In the United States, how much tax you pay on cryptocurrency varies depending on your annual income. Generally, the higher your income, the higher your tax liability.
Why is my length of ownership important?
If you dispose of your cryptocurrency after 12 months, you’ll pay the long-term capital gains rate which ranges from 0-20%. If you dispose of your cryptocurrency after less than 12 months, you’ll pay the short-term capital gains rate which ranges from 10-37%.
What is filing status?
Your filing status can impact your tax bill and determine the type of tax forms that you need to fill out. Currently, there are five filing status options you can claim on your tax return: head of household, qualified widow(er), married filing jointly, married filing separately and single.
Why is my location important?
Your state of residence is needed to calculate the impact of any state taxes.
Here are a few strategies that can help you lower your cryptocurrency taxes.