See your profit or loss on a crypto sale and estimate the federal capital gains tax before you sell. Uses 2026 IRS tax rates.
The IRS classifies crypto as property, not currency. Every disposal — selling, trading, or spending — is a taxable event requiring you to calculate and report gains or losses on Form 8949. The tax rate depends on how long you held the asset and on your taxable income.
| Rate | Single (taxable income) | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 to $545,500 | $98,901 to $613,700 |
| 20% | Above $545,500 | Above $613,700 |
Crypto held one year or less is short-term and taxed at ordinary income rates (10% to 37%). An extra 3.8% net investment income tax applies to investment gains once income passes $200,000 (single) or $250,000 (married filing jointly).
| Action | Taxable? | Tax Treatment |
|---|---|---|
| Sell crypto for USD | Yes | Capital gain or loss |
| Trade BTC for ETH | Yes | Capital gain/loss on BTC at time of trade |
| Buy goods/services with crypto | Yes | Capital gain/loss at time of purchase |
| Receive crypto as payment/mining | Yes | Ordinary income at fair market value |
| Staking rewards received | Yes | Ordinary income when received |
| Buy and hold crypto | No | No tax until sold |
| Transfer between your own wallets | No | Not a taxable event |
| Gift to another person | Depends | No gift tax return needed up to the annual exclusion ($19,000 per person in 2026) |
When you sell crypto bought at multiple prices, your cost basis depends on which "lot" counts as sold. FIFO (oldest coins first) is the default. Specific identification lets you pick the exact lot, as long as you have records that identify it; LIFO (newest coins first) is one way of picking lots under specific identification. Average cost is not an IRS-accepted method for crypto. Keep records for whichever method you use.
Stock investors face the wash sale rule — you can't claim a loss if you buy the same security back within 30 days. That rule is written for stocks and securities, and it has not been extended to cryptocurrency, although proposals to do so have been introduced repeatedly. Rules can change, so check the current law or ask a tax professional before selling at a loss and buying back.