A practical guide to US cryptocurrency taxes in 2026 — what events are taxable, short vs long-term capital gains, how to report crypto on your tax return, and the best tax software.
The IRS treats cryptocurrency as property. This means most crypto transactions create taxable events:
| Holding Period | Tax Type | Rate (based on income) |
|---|---|---|
| Under 12 months | Short-term capital gains | 10%, 12%, 22%, 24%, 32%, 35%, or 37% |
| 12+ months | Long-term capital gains | 0%, 15%, or 20% |
| Staking/Mining income | Ordinary income | Your marginal rate |
Use our free Crypto Tax Estimator to calculate your estimated tax based on your gain, holding period, and income bracket.
| Software | Free Tier | Best For |
|---|---|---|
| Koinly | Up to 25 transactions | Most investors, easy import |
| CoinLedger | Portfolio tracking | Beginners, TurboTax integration |
| TaxBit | Yes | Complex portfolios, DeFi |
| ZenLedger | Limited | CPA-ready reports |
Hold for 12+ months: The single biggest legal tax reduction strategy. Long-term capital gains rates are significantly lower than short-term for most taxpayers.
Tax-loss harvesting: If you have unrealized losses, selling to realize them can offset gains. Unlike stocks, crypto currently has no wash-sale rule (though this may change).
Donate appreciated crypto: Donating directly to a 501(c)(3) avoids capital gains tax and qualifies for a deduction at fair market value.