Tax by country
United States — tax on crypto and investments
Internal Revenue Service (IRS). Tax year 1 January – 31 December. Last verified 28-10-2026.
| Country | Currency | Tax year | Authority | Last verified | Status |
|---|---|---|---|---|---|
| US | USD | 1 January – 31 December | Internal Revenue Service (IRS) | 28-10-2026 | approved by the owner (accountant), 28-10-2026 |
Related article: hq-fs.com/blog/crypto-tax-united-states
Not tax advice. Rules summarised from official sources, linked where each rule is stated, as verified on the date above. Confirm with a qualified adviser before filing.
Scope: federal income tax only. State and local taxes are out of scope.
At a glance#
| Item | Rule |
|---|---|
| Tax year | Calendar year for individuals (1 January – 31 December) |
| Filing deadline (individuals) | 15 April (TY 2025 return: 15 April 2026). Next business day if a weekend or holiday. Form 4868 gives an automatic 6-month extension to file, not to pay |
| Crypto legal / tax classification | Property, not currency |
| Capital gains on crypto | Short-term (held one year or less): ordinary rates 10–37%. Long-term (held more than one year): 0 / 15 / 20% |
| Capital gains on shares / funds | Same short- / long-term split and rates. Wash-sale rule applies to stock and securities |
| Holding-period relief | Long-term rates if held more than one year. Holding period starts the day after acquisition (IRS virtual-currency FAQ 29) |
| Annual exemption / allowance | None for capital gains. The 0% long-term band works as a de facto allowance up to a taxable-income threshold |
| Losses (offset, carry-forward) | Capital losses offset capital gains. Net loss deductible against other income up to $3,000 ($1,500 married filing separately). Excess carried forward indefinitely |
| Cost-basis method required | Specific identification if adequately identified; otherwise FIFO (FAQ 39–41). From 1 January 2025 applied wallet-by-wallet / account-by-account (Notice 2025-7) |
| Staking / mining / airdrops | Ordinary income at fair market value: staking when the taxpayer gains dominion and control; mining on receipt; hard-fork airdrop on receipt |
| Crypto-to-crypto swaps | Taxable disposal; capital gain or loss (FAQ 16) |
| Spending crypto | Taxable disposal; capital gain or loss (FAQ 14–16) |
| VAT / GST on crypto | No federal VAT. State sales tax out of scope |
| Withholding or transaction tax | No federal transaction tax. 3.8% Net Investment Income Tax (NIIT) on investment income above fixed MAGI thresholds |
| Reporting obligations (forms, foreign accounts) | Form 1040 digital-asset question; Form 8949 + Schedule D; Schedule 1 / Schedule C for income; Form 8960 for NIIT; brokers issue Form 1099-DA. Crypto-only foreign accounts not currently FBAR-reportable |
Capital gains#
What counts as a disposal#
| Event | Taxable? |
|---|---|
| Sell crypto for USD | Yes — capital gain / loss (IRS FAQ) |
| Swap crypto for crypto | Yes (FAQ 16) |
| Pay for goods or services | Yes (FAQ 14–16) |
| Transfer between own wallets / accounts | No (FAQ 38) |
| Bona fide gift given / received | No income to recipient until they dispose (FAQ 31) |
| Donation to a §170(c) charity | No income, gain or loss (FAQ 34) |
Gain = amount realised (USD fair market value received) minus adjusted basis.
Long-term capital gains rates — thresholds on taxable income#
| Filing status | 2025: 0% up to | 2025: 15% up to | 2026: 0% up to | 2026: 15% up to | Above that |
|---|---|---|---|---|---|
| Single | $48,350 | $533,400 | $49,450 | $545,500 | 20% |
| Married filing jointly / surviving spouse | $96,700 | $600,050 | $98,900 | $613,700 | 20% |
| Married filing separately | $48,350 | $300,000 | $49,450 | $306,850 | 20% |
| Head of household | $64,750 | $566,700 | $66,200 | $579,600 | 20% |
Collectibles: maximum 28% long-term rate. An NFT is a collectible if its underlying asset or right is a collectible (look-through test, interim guidance).
Short-term gains — ordinary income brackets (taxable income over)#
| Rate | 2025 single | 2025 MFJ | 2026 single | 2026 MFJ |
|---|---|---|---|---|
| 10% | $0 | $0 | $0 | $0 |
| 12% | $11,925 | $23,850 | $12,400 | $24,800 |
| 22% | $48,475 | $96,950 | $50,400 | $100,800 |
| 24% | $103,350 | $206,700 | $105,700 | $211,400 |
| 32% | $197,300 | $394,600 | $201,775 | $403,550 |
| 35% | $250,525 | $501,050 | $256,225 | $512,450 |
| 37% | $626,350 | $751,600 | $640,600 | $768,700 |
The seven rates were made permanent by the One, Big, Beautiful Bill Act (Public Law 119-21, 4 July 2025).
Standard deduction#
| Filing status | 2025 (as amended by OBBBA) | 2026 |
|---|---|---|
| Single / MFS | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
The original 2025 figures ($15,000 / $30,000 / $22,500) in Rev. Proc. 2024-40 were superseded by OBBBA.
Net Investment Income Tax (NIIT)#
| Item | Rule |
|---|---|
| Rate | 3.8% on the lesser of net investment income or MAGI above threshold |
| Threshold — MFJ / surviving spouse | $250,000 |
| Threshold — MFS | $125,000 |
| Threshold — single / head of household | $200,000 |
| Indexed for inflation | No — same in 2025 and 2026 |
| Includes | Capital gains (net of capital losses), dividends, interest (NIIT Q&A) |
| Form | Form 8960 |
Top federal rate on long-term crypto gains: 20% + 3.8% = 23.8%. On short-term: 37% + 3.8% = 40.8%.
Wash-sale rule#
| Asset | Status 2025–2026 |
|---|---|
| Stock, securities, options on them | Loss disallowed if substantially identical property bought 30 days before or after the sale (61-day window) |
| Crypto held as property | Not covered: §1091 text applies to "stock or securities" and does not mention digital assets; IRS treats crypto as property |
Income#
| Event | Treatment | Value | Timing |
|---|---|---|---|
| Staking rewards (direct or via exchange) | Ordinary income | USD FMV at date and time of dominion and control | When the taxpayer can sell, exchange or dispose of the reward |
| Mining | Ordinary income; self-employment tax if a trade or business (Notice 2014-21, Q-8, Q-9) | USD FMV at receipt | On receipt |
| Hard fork, no new coins received | No income | — | — |
| Airdrop after a hard fork | Ordinary income | USD FMV when received | When received (dominion and control) (FAQ 23–24) |
| Crypto received for services / wages | Ordinary income (Schedule C for contractors) | USD FMV at receipt | On receipt |
Income is taxed at the ordinary brackets above. The income amount becomes the basis of the units received.
Cost basis and record keeping#
| Rule | Detail |
|---|---|
| Specific identification | Allowed when the taxpayer identifies the units and substantiates basis (unique identifier, or records per account / wallet / address) (FAQ 39–40) |
| Default if no identification | FIFO — units deemed disposed in chronological order of acquisition (FAQ 41; Notice 2025-7) |
| Per-wallet / per-account from 1 January 2025 | Treas. Reg. §1.1012-1(h) and (j) apply to all acquisitions and dispositions on or after 1 January 2025. Universal (all-wallets) pooling ends |
| Transition safe harbor (Rev. Proc. 2024-28) | Allocate unused basis to each wallet / account as of 1 January 2025 (= end of 31 December 2024). Specific-unit allocation must be made before the earlier of the first 2025 disposal of that asset or the return due date (with extensions) for 2025 |
| Broker-held units — temporary relief | Notice 2025-7: taxpayer may identify units via own books and records instead of instructing the broker, for 2025. Notice 2026-20 extends this through 31 December 2026. Applies only to units in broker custody |
| Average cost | Not listed as a method in the IRS virtual-currency FAQs (FAQ 39–41) |
| Records to keep | Purchases, sales, exchanges, other dispositions, and USD FMV of crypto received as income |
Indirect taxes#
| Item | Rule |
|---|---|
| Federal VAT / GST | None |
| State sales tax | Out of scope |
| Federal transaction / withholding tax on crypto trades | None found |
Reporting and deadlines#
Recent and upcoming changes#
| Date | Change | Status |
|---|---|---|
| 1 January 2025 | Wallet-by-wallet / account-by-account basis (§1.1012-1(j)) | In force |
| 1 January 2025 | Broker gross-proceeds reporting on Form 1099-DA | In force |
| 10 April 2025 | DeFi broker reporting rule nullified | In force |
| 4 July 2025 | OBBBA: rates permanent; standard deduction raised from 2025 | In force |
| TY 2025 | Form 8949 boxes G–L for digital assets | In force |
| 1 January 2026 | Broker basis reporting on 1099-DA for covered digital assets | In force |
| 18 March 2026 | Notice 2026-20 extends identification relief through 31 December 2026 | In force |
| Pending | FinCEN intends to make virtual currency FBAR-reportable; no rule issued | Announced, no date |
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