Estimate your federal and state tax liability on cryptocurrency capital gains, mining, and staking income.
Quick Answer:Short-term crypto gains are taxed at your ordinary income rate (10-37%), while long-term gains held over 1 year are taxed at 0%, 15%, or 20%. Mining/staking income also owes 15.3% self-employment tax.
Total Tax Owed
Calculating... estimated tax liability
Capital Gain
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Capital Gains Tax
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Mining Income Tax
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Net Proceeds
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Effective Tax Rate
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Holding Period
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Hold your crypto for at least one year to qualify for long-term capital gains rates, which can save you 10-20% compared to short-term rates. Additionally, consider tax-loss harvesting: selling losing positions to offset gains. For 2026, the IRS requires brokers and exchanges to report crypto transactions on Form 1099-DA, so ensure your records match. If you have significant mining income, consider making quarterly estimated tax payments to avoid underpayment penalties.
The IRS treats cryptocurrency as property. When you sell, trade, or dispose of crypto, you trigger a taxable event. Short-term capital gains (held less than 1 year) are taxed at your ordinary income tax rate, while long-term gains (held over 1 year) are taxed at preferential rates of 0%, 15%, or 20% depending on your income. Mining and staking income is taxed as ordinary income plus self-employment tax of 15.3%.
Yes. The IRS considers mining and staking income as self-employment income if you are not mining as an employee. This means you owe both regular income tax at your federal and state rates, plus self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on your net mining/staking earnings.
Cost basis is the original purchase price of your cryptocurrency plus any fees paid to acquire it. If you bought 1 BTC at $30,000 and paid a $50 trading fee, your cost basis is $30,050. When you sell, your capital gain or loss is the sale price minus the cost basis. You can use FIFO (first in, first out), LIFO (last in, first out), or specific identification methods to determine which coins you sold.