The IRS treats cryptocurrency as property. Gains are taxed as capital gains — short-term if held 1 year or less, long-term if held more than 1 year.
Short-term rates match ordinary income tax brackets (10%–37%).
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| Single | ≤ $47,025 | $47,026–$518,900 | > $518,900 |
| Married Joint | ≤ $94,050 | $94,051–$583,750 | > $583,750 |
| Head of Household | ≤ $63,000 | $63,001–$551,350 | > $551,350 |
This calculator provides estimates. Actual tax may differ based on your full tax situation, state taxes (which vary widely), the Net Investment Income Tax (3.8% on high earners), and transaction fees. Always consult a tax professional for large gains.
If you have losing positions, selling them before year-end lets you offset capital gains dollar-for-dollar. Up to $3,000 of net losses can also offset ordinary income each year, with remaining losses carried forward.