Crypto Staking Tax Calculator 2026 β€” Staking, Mining & Airdrop Income

Calculate federal and state income tax on crypto staking rewards, mining income, airdrops, and DeFi yield farming. Includes self-employment tax for mining businesses.

$
Fair market value in USD when you received the rewards
$
Salary, business income, other taxable income
%
0% for FL, TX, NV, WY, AK, SD, TN
$0
Total Tax on Crypto Income
$0
Federal Income Tax
$0
Self-Employment Tax
$0
State Tax
Effective Rate on Rewards: 0% Marginal Rate: 0%

Tax Breakdown & Income Type Details

How Crypto Staking & Mining Income Is Taxed

The IRS treats all cryptocurrency received as income β€” from staking, mining, airdrops, or DeFi β€” as ordinary income at the fair market value (FMV) at the time you receive it (IRS Rev. Rul. 2023-14). This income is added to your other income and taxed at your marginal federal rate.

Mining is unique: if you operate as a trade or business, you also owe self-employment tax (15.3% on net earnings up to the SS wage base, 2.9% above). Business miners can deduct equipment and electricity costs on Schedule C. Staking, airdrops, and DeFi yield are generally passive income β€” no SE tax, but also fewer deduction opportunities.

The Formula

Taxable Crypto Income = FMV at Receipt (βˆ’ Mining Expenses if business)
Federal Tax = Marginal Rate Γ— Crypto Income (stacked on other income)
SE Tax = 15.3% Γ— 92.35% Γ— Net Mining Income (if business, up to $184,500)
State Tax = State Rate Γ— Crypto Income
Total Tax = Federal + SE Tax + State Tax

Example

$15,000 staking rewards, $75,000 other income, single filer, 5% state rate:
Total income: $75,000 + $15,000 = $90,000 | Taxable: $90,000 βˆ’ $15,000 deduction = $75,000
Federal tax on staking portion (22% bracket): $15,000 Γ— 22% = $3,300
SE tax: $0 (staking is not self-employment)
State tax: $15,000 Γ— 5% = $750
Total tax on staking: $4,050 | Effective rate: 27%
Extended

Annual Staking Income Tracker

Enter monthly staking rewards with FMV at receipt β€” calculate total annual taxable income accounting for price fluctuations

Enter your monthly staking rewards at the FMV when received. This accounts for price fluctuations throughout the year β€” rewards received at higher prices create higher taxable income.

Month Rewards Received (tokens) FMV per Token ($) USD Value

Total annual taxable amount is carried to the main calculator β€” change the FMV inputs above to model different price scenarios throughout the year.

Frequently Asked Questions

Are staking rewards taxable income?
Yes. The IRS ruled in Rev. Rul. 2023-14 that staking rewards are taxable as ordinary income at their fair market value when received. This applies to proof-of-stake staking, liquidity pool rewards, and yield farming returns. The FMV at receipt becomes your cost basis for calculating future capital gains if you later sell the rewards.
How is crypto mining income taxed differently from staking?
Both mining and staking rewards are ordinary income at FMV when received. The key difference is that mining may be considered a trade or business, making profits subject to self-employment (SE) tax of 15.3% on top of ordinary income tax. Mining expenses (hardware, electricity) may be deductible as business expenses. Staking generally does not trigger SE tax as it is considered passive income.
Are airdrops taxable?
Yes. The IRS treats airdrops of new tokens (including after a hard fork that results in a new asset) as ordinary income at the fair market value of the tokens on the date you receive them and have dominion and control over them. If you cannot immediately access or sell the tokens, taxability may be deferred until you can. Record the FMV carefully at receipt.
What expenses can I deduct for crypto mining?
If mining is a trade or business (not a hobby), you can deduct on Schedule C: mining hardware depreciation, electricity costs, hosting/colocation fees, pool fees, and other business expenses. If classified as a hobby, expenses are limited to income from the activity and cannot be deducted against other income. The IRS looks at profit motive, regularity, and time invested to distinguish business from hobby.
Do I owe state tax on crypto staking and mining income?
Most states follow federal treatment and tax crypto rewards as ordinary income at the state level. A few states with no income tax (FL, TX, NV, WY, AK, SD, TN) have no state income tax on these earnings. Some states like California aggressively tax all crypto income. Always check your specific state's rules as crypto tax guidance continues to evolve.