How is crypto taxed in 2026?

The IRS treats crypto as property. Selling, swapping, or spending crypto is a taxable event. Hold under 1 year = short-term capital gains, taxed at ordinary income rates (10%-37%). Hold over 1 year = long-term capital gains, taxed at 0%, 15%, or 20% depending on income.

What is the Net Investment Income Tax (NIIT) on crypto?

NIIT is a 3.8% surtax on investment income (including crypto gains) for high earners. It applies when your modified adjusted gross income (MAGI) exceeds $200,000 (single/HoH) or $250,000 (MFJ). Only the investment income above the threshold is hit.

Do I owe state tax on crypto gains?

Most states tax crypto gains as ordinary income at state income tax rates. No-income-tax states (AK, FL, NV, SD, TN, TX, WY, NH, WA) generally don't tax cap gains — except Washington, which has a 7% tax on long-term gains over $250k since 2022. New Hampshire only taxes interest and dividends.

Is crypto-to-crypto trading taxable?

Yes. Every swap — BTC to ETH, ETH to stablecoin, anything — is a taxable disposition. Your gain or loss equals the fair market value of the crypto received minus your cost basis in the crypto given up. This is one of the biggest sources of unexpected tax bills.

Can I deduct crypto losses?

Yes. Crypto losses offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income per year ($1,500 if married filing separately). Excess losses carry forward to future years indefinitely. The wash-sale rule does not currently apply to crypto, so harvesting losses and re-buying immediately is legal as of 2026.

Free · 2026 tax year

Your crypto tax bill, in 10 seconds.

Enter your realized gains, income, and state. See your federal + state crypto tax estimate, what NIIT might cost you, and how much you'd save by holding past one year.

Your numbers 2026

Short-term gains Held ≤ 1 year

Realized gains from crypto sold, swapped, or spent within 1 year. Taxed at ordinary income rates.

Long-term gains Held > 1 year

Realized gains from crypto held more than 1 year. Taxed at 0% / 15% / 20%.

Other ordinary income W-2 + self-employment

Non-crypto taxable income. Determines which long-term cap gains bracket you land in.

Filing status

State

Estimate only — not tax advice. 2026 federal brackets are projected from 2025 with inflation indexing. State cap gains tax uses each state's top ordinary income rate. NIIT (3.8%) applies above MAGI thresholds. Verify with a tax pro before filing.

Total tax on your crypto

Enter your gains above to see your bill.

Breakdown Awaiting input

Short-term federal

Taxed at ordinary rates

Long-term federal

Taxed at 0% / 15% / 20%

Net Investment Income Tax (3.8%)

Above MAGI thresholds

State tax

— Select a state —

Scenario · hold to long-term

What if you wait?

If you reclassified your short-term gains as long-term (held past 1 year), here's your savings.

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Today · short-term

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After 1 year

in tax savings

Scenario · tax-loss harvest

Got losses sitting?

Enter unrealized loss positions you could close. Up to $3,000 over net offsets ordinary income; the rest carries forward.

in tax savings

How crypto taxes actually work · NIIT, holding period, loss harvesting and what this tool doesn't cover — read on below.

How crypto taxes actually work in 2026

The IRS treats crypto as property, not currency. Every disposition — selling for USD, swapping one coin for another, paying for goods with crypto — is a taxable event. Your gain or loss equals the fair market value at disposal minus your cost basis.

The big split:

Short-term (held ≤ 1 year): taxed at your ordinary income rate — 10% to 37% federal.
Long-term (held > 1 year): taxed at 0% / 15% / 20% depending on your total income. Most middle-income earners pay 15%.

The NIIT trap most calculators miss

Above $200k MAGI (single/HoH) or $250k (MFJ), the IRS tacks on a 3.8% Net Investment Income Tax on top of your cap gains. The threshold is unindexed — it hasn't moved since 2013 — so more people hit it every year. If you had a big crypto year, NIIT can be the difference between a 15% and an effective 18.8% federal rate on long-term gains.

Why holding period is the single biggest lever

The gap between short-term (up to 37%) and long-term (max 20%) rates is the biggest tax decision a crypto holder makes. Selling on day 364 vs day 366 can cost you 12-22 percentage points on the gain. The hold-to-long-term scenario above shows exactly what waiting buys you for your numbers.

Tax-loss harvesting is legal for crypto

The wash-sale rule that blocks stock-sale loss harvesting does not currently apply to crypto as of 2026. You can sell a loss position to crystallize the loss for tax purposes, immediately re-buy at the same price, and the loss is still deductible. Congress has proposed closing this loophole multiple times — assume it could change in any year.

Losses offset gains dollar-for-dollar. Up to $3,000 of net loss can offset ordinary income per year ($1,500 if MFS). Anything beyond that carries forward indefinitely.

What this calculator doesn't cover

Mining and staking income — taxed as ordinary income at fair market value when received.
DeFi yield — generally ordinary income; specific treatment varies.
Airdrops and forks — ordinary income at receipt.
NFT sales — collectibles taxed up to 28% if held over 1 year.
Lost or stolen crypto — generally not deductible since 2018.
Form 8949 + Schedule D generation — for that, you need transaction-level software (Koinly, CoinTracker, ZenLedger).

This estimator gives you the rough number. For actual filing, get a CPA or use crypto-specific tax software.