US Crypto Tax Calculator - Calculate Cryptocurrency Tax 2025
Free calculator to estimate federal and state taxes on cryptocurrency capital gains with 2025 IRS rates for Bitcoin, Ethereum, and all digital assets
US Crypto Tax Calculator 2025
Results
What is a US Crypto Tax Calculator?
A US Crypto Tax Calculator is a specialized financial tool designed to calculate federal and state taxes on cryptocurrency transactions including Bitcoin, Ethereum, and all digital assets. It applies 2025 IRS tax rules treating crypto as property subject to capital gains taxation, with short-term gains taxed as ordinary income (10%-37%) and long-term gains receiving preferential rates (0%, 15%, 20%), plus the 3.8% Net Investment Income Tax for high earners.
This calculator is essential for:
- Crypto trading tax planning - Estimate tax liability before selling or trading cryptocurrency
- Tax compliance - Calculate accurate taxes owed to the IRS on crypto gains
- Portfolio management - Optimize holding periods to minimize tax burden
- Multiple transaction tracking - Calculate total taxes across all crypto trades
- Tax loss harvesting - Identify opportunities to offset gains with crypto losses
For general capital gains tax calculations on stocks and investments, use our US Capital Gains Tax Calculator to estimate federal and state taxes on traditional investment sales.
To calculate dividend taxes on crypto dividend tokens or staking rewards, explore our Dividend Tax Calculator for qualified and ordinary dividend tax rates.
For understanding your overall federal tax burden including crypto income, check our Federal Income Tax Calculator to determine total tax liability across all income sources.
To compare with UK cryptocurrency taxation, try our UK Crypto Tax Calculator for calculating Capital Gains Tax on digital assets in the United Kingdom.
How US Crypto Tax Calculator Works
The calculation follows IRS guidelines for cryptocurrency taxation as property (2025):
Capital Gain/Loss Calculation
Capital Gain = (Sale Price - Purchase Price) × Number of Coins
The difference between your sale proceeds and cost basis determines taxable gain or deductible loss
Short-Term Capital Gains (held < 1 year)
Tax = Gain × Ordinary Income Tax Rate (10%-37%)
Taxed at your regular income tax bracket based on total taxable income including crypto gains
Long-Term Capital Gains (held >= 1 year)
0%: Single ≤ $48,350, MFJ ≤ $96,700
15%: Single $48,351-$533,400, MFJ $96,701-$600,050
20%: Single > $533,400, MFJ > $600,050
Net Investment Income Tax (NIIT)
Additional 3.8% if MAGI > $200K (single) or $250K (MFJ)
NIIT = Lesser of (Crypto Gain or Excess MAGI) × 3.8%
Total Tax and Net Proceeds
Total Tax = Federal Tax + NIIT + State Tax
Net Proceeds = Sale Amount - Total Tax
The calculator automatically determines applicable tax rates based on holding period, income level, and filing status, then adds NIIT for high earners and state taxes for complete after-tax proceeds calculation.
Key Concepts Explained
Cryptocurrency as Property
The IRS treats cryptocurrency as property, not currency, for tax purposes. Every sale, trade, or spending of crypto triggers a taxable event requiring capital gains/loss reporting on Form 8949 and Schedule D, similar to stocks or real estate transactions.
Cost Basis Tracking
Cost basis includes the purchase price plus any transaction fees, network fees, or exchange fees paid to acquire the cryptocurrency. Accurate tracking is essential for calculating correct gains/losses, especially with multiple purchases at different prices over time.
Taxable Crypto Events
Taxable events include selling crypto for fiat currency (USD), trading one cryptocurrency for another (Bitcoin to Ethereum), spending crypto on goods or services, receiving crypto as payment for work, mining rewards, staking income, and airdrops received.
Holding Period Strategy
Holding cryptocurrency for at least one year before selling qualifies for preferential long-term capital gains rates (0%, 15%, 20%) instead of ordinary income rates (up to 37%), potentially saving significant taxes on large gains. Strategic timing can reduce tax burden substantially.
How to Use This Calculator
- Enter purchase price (cost basis) - Input the original price you paid per coin/token including all transaction fees and network fees
- Enter sale price - Input the current sale price per coin/token or the price you plan to sell at for tax estimation
- Enter number of coins/tokens - Specify the quantity of cryptocurrency being sold (supports fractional amounts like 0.5 BTC)
- Select holding period - Choose Short-Term (held less than 1 year) or Long-Term (held 1 year or more) to determine tax rates
- Select filing status - Choose Single, Married Filing Jointly, Married Filing Separately, or Head of Household for accurate bracket application
- Enter state tax rate - Input your state's income tax rate (use 0 for states with no income tax like Texas, Florida, or Wyoming)
- Enter annual taxable income - Input your taxable income excluding crypto gains to properly calculate tax brackets and NIIT
- Click Calculate - View total tax owed, federal tax, NIIT, state tax, and net proceeds after all taxes instantly
Benefits of Using This Calculator
- Accurate 2025 IRS tax rates - Calculate using current federal capital gains brackets and NIIT thresholds for precise cryptocurrency tax estimates
- Multiple transaction support - Track gains and losses across numerous crypto trades to estimate total annual tax liability
- Holding period optimization - Compare short-term vs long-term tax implications to determine optimal selling timing and potentially save thousands
- NIIT calculation included - Automatically calculates 3.8% Net Investment Income Tax for high earners exceeding MAGI thresholds
- State tax integration - Include state income tax for complete after-tax proceeds calculation across all US jurisdictions
- Tax planning insights - Identify opportunities for tax loss harvesting by offsetting crypto gains with losses from other transactions
Factors That Affect Your Results
- Holding period threshold - Holding crypto for just 365+ days vs 364 days can reduce tax rates from 37% to 20%, saving 17% on high-income crypto sales
- Income bracket positioning - Crypto gains can push you across 0%, 15%, or 20% long-term thresholds, with portions taxed at each applicable rate progressively
- NIIT threshold crossings - Modified AGI exceeding $200K (single) or $250K (MFJ) triggers additional 3.8% tax on crypto investment income
- State tax variations - State rates range from 0% (no income tax states like Texas, Florida, Wyoming) to over 13% (California), dramatically affecting net crypto proceeds
- Cost basis calculation method - Using FIFO, LIFO, or specific identification methods can result in different taxable gains on the same crypto sale
- Crypto loss harvesting - Selling losing crypto positions to offset gains reduces taxable amount, with up to $3,000 excess losses deductible against ordinary income
Frequently Asked Questions
How is cryptocurrency taxed in the United States?
The IRS treats cryptocurrency as property, not currency. When you sell, trade, or spend crypto, you trigger a taxable event. Short-term gains (held less than 1 year) are taxed as ordinary income at 10%-37%. Long-term gains (held 1 year or more) receive preferential rates of 0%, 15%, or 20% based on your income level.
What crypto transactions are taxable?
Taxable events include selling crypto for fiat currency, trading one crypto for another, spending crypto on goods/services, receiving crypto as payment for services, mining rewards, staking rewards, and airdrops. Simply buying and holding crypto is not taxable until you dispose of it.
What is the Net Investment Income Tax (NIIT) on crypto?
High earners pay an additional 3.8% NIIT on cryptocurrency gains when their modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). This tax applies on top of regular capital gains tax, effectively increasing your total tax burden.
How do I calculate my crypto cost basis?
Cost basis is the original purchase price plus any fees paid to acquire the cryptocurrency. For multiple purchases, you can use FIFO (first-in, first-out), LIFO (last-in, first-out), or specific identification methods. Accurate cost basis tracking is essential for correct tax calculations and minimizing tax liability.
Can I deduct crypto losses on my taxes?
Yes, cryptocurrency losses offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 ($1,500 married filing separately) against ordinary income per year. Remaining losses carry forward indefinitely to future tax years, providing valuable tax benefits.
Do I need to report crypto if I only bought and held?
Yes, the IRS requires you to answer the digital asset question on Form 1040 even if you only bought crypto. However, simply purchasing and holding cryptocurrency without selling, trading, or spending it does not create a taxable event, so you won't owe taxes on unrealized gains.