Crypto Taxes in the US for 2026: Rates, Brackets and Worked Examples
The IRS treats cryptocurrency as property, not currency. That single decision drives almost everything about how crypto is taxed in the United States: selling, swapping and spending crypto are all treated like selling a stock or a piece of real estate, and the gain or loss is reported on your tax return.
This guide covers the 2026 tax year (returns filed in 2027). It is an educational overview, not tax advice.
What counts as a taxable event
Taxable (capital gain or loss):
- Selling crypto for US dollars or another fiat currency
- Swapping one cryptocurrency for another, including stablecoins
- Spending crypto on goods or services
Taxable as ordinary income:
- Receiving crypto as payment for work
- Mining and staking rewards, generally valued when you gain control of them
- Most airdrops
Usually not taxable:
- Buying crypto with dollars and holding it
- Moving crypto between your own wallets or accounts
- Gifting crypto below the annual gift-tax exclusion (the recipient takes over your cost basis)
Run your own numbers with the free calculator: Crypto Tax Calculator
Open calculator →Short-term vs long-term gains
The holding period decides your rate.
- Short-term: held one year or less. Taxed at ordinary income rates of 10% to 37%.
- Long-term: held more than one year. Taxed at 0%, 15% or 20%.
2026 long-term capital gains brackets
| Rate | Single (taxable income) | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 |
| 20% | Over $545,500 | Over $613,700 |
2026 ordinary income brackets (single)
| Rate | Taxable income |
|---|---|
| 10% | $0 – $12,400 |
| 12% | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 |
| 37% | Over $640,600 |
The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
Worked example: the same gain, two holding periods
A single filer earns a $70,000 salary and sells Bitcoin for a $15,000 gain.
- Taxable salary after the standard deduction: $70,000 − $16,100 = $53,900
- If held over one year: the gain is stacked on top of $53,900, which is already above the 0% threshold, so all $15,000 is taxed at 15% = $2,250
- If held one year or less: the gain is ordinary income, landing in the 22% bracket = $3,300
Waiting past the one-year mark would save $1,050 in federal tax in this case.
The 0% bracket opportunity
A single filer with $40,000 of salary has $23,900 of taxable ordinary income. That leaves $25,550 of room below the $49,450 threshold, so up to $25,550 of long-term gains could be taxed at 0% federally. Some investors deliberately realize gains in low-income years for this reason.
The 3.8% Net Investment Income Tax
If your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly), an extra 3.8% applies to the lesser of your net investment income or the amount above the threshold. Crypto gains count as investment income.
State taxes
Most states tax capital gains as ordinary income, at rates from 0% in states with no income tax to over 13% in California. Our crypto tax calculator lets you add your state rate.
Capital losses
Losses first offset gains of the same type, then the other type. If losses exceed gains, you can deduct up to $3,000 per year ($1,500 if married filing separately) against ordinary income and carry the rest forward indefinitely. See tax-loss harvesting.
Reporting
- Each disposal is listed on Form 8949 and totals flow to Schedule D.
- Form 1040 asks every taxpayer whether they received, sold or exchanged digital assets — answer it accurately.
- Brokers now issue Form 1099-DA. Read Form 1099-DA explained.
- Income from staking, mining or self-employment goes on Schedule 1 or Schedule C.
Cost basis
Your gain depends on which coins you are treated as selling. Since 2025, the IRS requires basis to be tracked per wallet or account, not across all your holdings combined. Specific identification is allowed with adequate records; otherwise FIFO generally applies. See cost basis methods.
Estimate your tax
Enter your cost, sale proceeds, salary and filing status in the crypto tax calculator to compare short-term and long-term outcomes. Confirm final numbers with a tax professional or IRS guidance.
CryptoMathly provides educational estimates only and is not financial, investment or tax advice. Crypto assets are volatile and you can lose money. Always verify figures with a qualified professional.