Crypto Tax Calculator

In most countries, selling, trading, or spending cryptocurrency is a taxable event that triggers capital gains tax on any profit above your cost basis. The tax rate depends critically on how long you held the asset before selling: in the US, assets held over one year qualify for long-term capital gains rates of 0%, 15%, or 20% depending on income — significantly lower than the short-term rates applied to assets held under one year, which are taxed as ordinary income at rates up to 37%. This calculator estimates the tax owed on a crypto profit by applying your stated tax rate, capping long-term gains at the US maximum of 20%. Tax is one of the most overlooked factors in crypto investing. A trader who generates $50,000 in short-term profits may owe $15,000–$18,500 in federal tax alone — money that needs to be set aside rather than reinvested. Understanding this before taking profits helps avoid a tax bill you cannot pay. The calculator is also useful for tax-loss harvesting decisions: if a position is underwater, realizing the loss before year-end offsets gains from profitable trades and reduces your total tax liability. Note that crypto-to-crypto trades (e.g., selling ETH to buy SOL) are also taxable events in the US — not just conversions to USD. Always consult a tax professional or use dedicated crypto tax software like Koinly, CoinTracker, or TaxBit for accurate filing.

Effective Rate = long-term ? min(Tax Rate, 20%) : Tax Rate. Tax Owed = Profit × Effective Rate. After-Tax Profit = Profit − Tax Owed. For US long-term capital gains, the calculator caps the effective rate at 20%, reflecting the statutory maximum US long-term capital gains rate. Short-term gains use the full stated tax rate, representing ordinary income tax treatment. As a worked example: $10,000 profit, held 18 months (long-term), 22% income tax bracket. Effective rate = min(22%, 20%) = 20%. Tax owed = $10,000 × 0.20 = $2,000. After-tax profit = $8,000. For a short-term $5,000 profit at 32%: Tax = $5,000 × 0.32 = $1,600, leaving $3,400 after tax — $800 less than if it had been a long-term gain at 20%.