Crypto tax in the USA
Rules verified in September 2026.
Short term
10–37%
Long term
0–20%
Threshold
More than 1 year
Annual allowance
Not applicable
Cost method
FIFO or specific identification (with records)
Legislation
IRS Notice 2014-21; Rev. Rul. 2023-14; Treas. Reg. §1.1012-1(j) (2025)
In short
The IRS classifies crypto as property. Short-term gains (1 year or less) are taxed at the ordinary marginal rate (up to 37%). Long-term (more than 1 year): 0%, 15% or 20% depending on income (plus 3.8% NIIT above $200k/$250k). Since 2025 cost basis is mandatory per wallet/account and brokers issue Form 1099-DA. Foreign accounts holding only crypto are still outside the FBAR (FinCEN Notice 2020-2), but Form 8938 may apply.
Key points
- 0–20% long-term (more than 1 year); +3.8% NIIT above $200k/$250k
- 10–37% short-term
- FIFO by default; specific identification allowed with records
- Cost basis per wallet/account since 1 Jan 2025 (end of the universal method)
- Form 1099-DA issued by brokers from tax year 2025 (proceeds + basis for purchases from 2026)
- Every crypto-to-crypto trade is a taxable event
- File via Form 8949 + Schedule D; staking/mining = ordinary income
- De minimis and wash-sale rules under discussion in Congress (Sept 2026), no law passed
Frequently asked questions
How much tax do you pay on crypto in the USA?
10–37% · 0–20%. The IRS classifies crypto as property. Short-term gains (1 year or less) are taxed at the ordinary marginal rate (up to 37%). Long-term (more than 1 year): 0%, 15% or 20% depending on income (plus 3.8% NIIT above $200k/$250k). Since 2025 cost basis is mandatory per wallet/account and brokers issue Form 1099-DA. Foreign accounts holding only crypto are still outside the FBAR (FinCEN Notice 2020-2), but Form 8938 may apply.
Is there an annual allowance on crypto gains in the USA?
There is no crypto-specific annual allowance on capital gains in the USA.
Which method is used to match buys and sells?
It depends on the country: FIFO (the first unit bought is the first sold) in Portugal, Spain, Germany or Belgium; weighted average cost in France, Luxembourg or Brazil; LIFO in Italy; the Section 104 pool in the UK. ChainFolioAI applies the chosen country's method to your history (in some countries with a simplification, stated on this page) and exports the result.
Calculate on your own history
The rate is only half the problem. To file, you need to match each disposal to the right acquisition under the country's method (FIFO, average cost, LIFO…), convert to your currency at the date of each transaction, and separate short-term from long-term. ChainFolioAI does this from your transactions — connect wallets read-only or import a CSV from your exchange — and exports to PDF or Excel.
This country's method: FIFO or specific identification. Since 2025 cost basis is per wallet or account, and the calculator applies FIFO per exchange, using the name given on each trade. Transfers are not recorded: when a sale has too few purchases in the same account, it uses the oldest ones from the others. It does not do specific identification. Confirm the figure to declare with an accountant.
Other countries
⚠️ General information, not tax advice. Rules change and your situation may have specifics (residency, professional activity, staking, mining). Confirm with an accountant or your tax authority before filing. ChainFolioAI is not an exchange or a crypto-asset service provider and does not report your data to any tax authority: reporting duties (DAC8, CARF) fall on exchanges. The reports you export are yours alone.