BCBetter Calculators

Crypto Tax Calculator

Estimate capital gains tax owed on your cryptocurrency profits.

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Enter your values and click Calculate

How It Works

Effective Rate = long-term ? min(Tax Rate, 20%) : Tax Rate. Tax Owed = Profit × Effective Rate. After-Tax Profit = Profit − Tax Owed. For US long-term capital gains, the calculator caps the effective rate at 20%, reflecting the statutory maximum US long-term capital gains rate. Short-term gains use the full stated tax rate, representing ordinary income tax treatment. As a worked example: $10,000 profit, held 18 months (long-term), 22% income tax bracket. Effective rate = min(22%, 20%) = 20%. Tax owed = $10,000 × 0.20 = $2,000. After-tax profit = $8,000. For a short-term $5,000 profit at 32%: Tax = $5,000 × 0.32 = $1,600, leaving $3,400 after tax — $800 less than if it had been a long-term gain at 20%.

Examples

Long-Term BTC Gain
$10,000 profit after 18 months in the 22% income tax bracket.
Result: Tax: $2,000 (effective rate capped at 20%) — After-tax profit: $8,000.
Short-Term Altcoin Flip
$5,000 profit after 6 months in the 32% tax bracket.
Result: Tax: $1,600 — After-tax profit: $3,400.
Small Short-Term Gain
$3,000 profit after 3 months in the 24% bracket.
Result: Tax: $720 — After-tax profit: $2,280.

Frequently Asked Questions

When do I owe crypto tax?
In the US, you owe tax when you realize a gain — when you sell crypto for USD, trade one crypto for another, or use crypto to purchase goods or services. Simply holding cryptocurrency is not a taxable event, regardless of how much it appreciates. Receiving crypto as income (mining rewards, staking rewards, airdrops, or payment for work) is taxable as ordinary income at the fair market value when received.
What are the long-term capital gains rates in the US?
For assets held over one year, the US federal long-term capital gains rates are 0% (for taxable income below ~$47,025 for single filers in 2024), 15% (for income up to ~$518,900), or 20% (above that threshold). These are significantly lower than short-term rates, which equal your ordinary income tax rate (10%–37%). State taxes may also apply, and high-income taxpayers may owe an additional 3.8% Net Investment Income Tax.
Is this a substitute for professional tax advice?
No — this is a simplified estimate using a single profit figure and one tax rate. Real crypto tax situations involve multiple trades, varying cost basis methods (FIFO, LIFO, specific ID), wash sale rules (which do not apply to crypto as of 2024 but may change), staking income, and state taxes. Use dedicated software like Koinly, CoinTracker, TaxBit, or a CPA specializing in crypto for accurate filing, especially if you have many transactions or significant gains.

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