Calculate cryptocurrency capital gains tax using FIFO method. Enter buy and sell prices to see short-term and long-term tax on crypto trades.
How to Use This Crypto Tax Calculator
Enter the price you paid per coin (your cost basis), the price you sold at per coin, and the quantity sold. Select short-term (held 1 year or less) or long-term (held more than 1 year). The calculator computes your capital gain and applicable tax rate based on your other income and filing status.
Transaction fees paid at purchase increase your cost basis (reducing the gain). Fees paid at sale reduce your proceeds (also reducing the gain).
The Formula
Total Cost Basis = Buy Price Γ Quantity + Purchase Fees
Net Proceeds = Sell Price Γ Quantity β Sell Fees
Capital Gain = Net Proceeds β Total Cost Basis
Tax = Gain Γ LTCG Rate (0%/15%/20%) or Ordinary Rate (short-term)
Example
2 BTC bought at $30,000, sold at $60,000, held 18 months, $75K other income (single):
Cost basis: 2 Γ $30,000 = $60,000 | Proceeds: 2 Γ $60,000 = $120,000
Capital gain: $60,000 (long-term)
Total taxable income: $75,000 β $15,000 + $60,000 = $120,000
LTCG rate: 15% | Tax: $60,000 Γ 15% = $9,000
Net profit after tax: $51,000
Frequently Asked Questions
Is cryptocurrency taxed?
Yes. The IRS treats cryptocurrency as property, not currency. Every time you sell, trade, or exchange crypto, you trigger a taxable event. Short-term gains (held β€1 year) are taxed as ordinary income at rates up to 37%. Long-term gains (held >1 year) are taxed at preferential rates of 0%, 15%, or 20%.
What is FIFO for crypto taxes?
FIFO (First In, First Out) is a cost basis method that assumes you sell the earliest-purchased coins first. This is the IRS default if you don't specify a method. FIFO can result in higher taxes when prices have risen because you sell your lowest-cost-basis coins first, creating larger gains.
Do I owe taxes if I just held crypto without selling?
No. Simply holding (HODLing) cryptocurrency does not trigger a taxable event regardless of how much the value increases. Taxes are only owed when you sell, trade crypto for another crypto, spend crypto on goods/services, or receive crypto as income (mining, staking, airdrops β taxed as ordinary income at fair market value when received).
How do crypto-to-crypto trades work for taxes?
Trading one cryptocurrency for another (e.g., BTC to ETH) is a taxable event. The gain or loss equals the fair market value of the crypto you received minus your cost basis in the crypto you gave up. You must track every trade even if no USD was involved.
What records do I need to keep for crypto taxes?
Keep records of: date acquired, amount and type of crypto acquired, cost basis (USD value at acquisition), date sold/traded, amount and type disposed of, proceeds received (USD value at disposal), and exchange/wallet records. Many exchanges provide tax reports (Form 1099-DA starting 2025). Third-party software like CoinTracker or Koinly can help.