How crypto is taxed
In the US, UK and Canada, cryptocurrency is treated as property rather than currency. Selling crypto for cash, swapping one coin for another, or spending it on goods is a taxable disposal. Your gain is the value you received minus your cost basis, which is what you paid including fees.
United States (tax year 2026)
Coins held one year or less produce short-term gains, taxed at ordinary income rates from 10% to 37%. Coins held longer than one year qualify for long-term rates of 0%, 15% or 20%. For 2026 the 0% rate applies up to $49,450 of taxable income for single filers and $98,900 for married couples filing jointly, and the 20% rate starts above $545,500 and $613,700. The standard deduction is $16,100 (single) and $32,200 (joint). High earners may also owe the 3.8% Net Investment Income Tax above $200,000 / $250,000 of modified AGI.
United Kingdom (2026/27)
Crypto gains fall under Capital Gains Tax. The first £3,000 of total gains each tax year is tax-free. Gains that fit within your unused basic-rate band (£37,700 above the £12,570 personal allowance) are taxed at 18%, and anything above that at 24%. HMRC requires share pooling (Section 104) to work out your cost basis, plus same-day and 30-day matching rules.
Canada (2026)
Only half of a capital gain is taxable — the 50% inclusion rate. The proposed increase to two-thirds was cancelled, so 50% still applies. The taxable half is added to your income and taxed at your combined federal and provincial marginal rate. Federal rates for 2026 start at 14%. Frequent trading can be treated as business income, which is fully taxable.
What this calculator does not cover
- Staking, mining and airdrop rewards, which are usually taxed as income when received.
- Cost-basis matching across many trades (FIFO, share pooling, adjusted cost base).
- Credits, other deductions, AMT and state-specific rules.
Use the result as a planning estimate and confirm with the IRS, HMRC or CRA guidance or a qualified accountant.
Frequently asked questions
Do I pay tax on crypto if I don't sell?
Generally no. Simply holding crypto is not taxable. Tax is triggered when you dispose of it — selling, swapping or spending — or when you receive it as income.
Is swapping one crypto for another taxable?
Yes, in the US, UK and Canada a crypto-to-crypto trade is a disposal of the first coin at its market value.
Can crypto losses reduce my tax?
Yes. In the US, capital losses offset gains plus up to $3,000 of ordinary income per year. In the UK, losses offset gains and must be reported to be carried forward. In Canada, allowable capital losses offset taxable capital gains and can be carried back three years or forward indefinitely.
What is form 1099-DA?
It is the new IRS form US crypto brokers use to report digital-asset sales. Brokers report gross proceeds for 2025 sales and add cost basis for many assets acquired from 2026 onward.