This article provides general educational information about crypto taxation — not professional tax advice. Tax laws change frequently and vary by jurisdiction. Consult a qualified tax professional for your specific situation. Failure to report crypto income is illegal and penalties can be severe.
US Crypto Tax Rules 2026 — The Basics
In the US, the IRS treats cryptocurrency as property, not currency. This means every crypto transaction is potentially a taxable event. Key taxable events: Selling crypto for cash (capital gain/loss), trading one crypto for another (taxable — Bitcoin to Ethereum trade triggers capital gain), earning crypto through staking/mining/airdrops (ordinary income at fair market value on receipt date), and spending crypto for goods or services (capital gain on appreciation since purchase).
US Crypto Tax Rates 2026
| Holding Period | Tax Rate | Example |
|---|---|---|
| Under 1 year (short-term) | 10-37% (ordinary income rate) | Buy BTC Jan, sell Sep = short-term |
| Over 1 year (long-term) | 0%, 15%, or 20% | Buy BTC Jan 2025, sell Feb 2026 = long-term |
| Staking/airdrop income | Ordinary income rate | ETH staking rewards taxed as income |
| DeFi yield income | Ordinary income rate | USDC lending interest = income |
India Crypto Tax Rules 2026
India has among the strictest crypto tax regimes globally: 30% flat tax on all crypto gains — no exemptions, no deductions (except cost of acquisition), no loss offset against other income. 1% TDS (Tax Deducted at Source) on every crypto transaction above ₹10,000 — collected by exchanges. No loss carry-forward against other crypto gains in India currently (the 2025 budget did not change this). Indian crypto investors must report all holdings and transactions in the ITR. Using foreign exchanges does not exempt from Indian tax — you are taxed on global crypto income if you are an Indian resident.
Crypto Tax Tools — Track From Day One
- Koinly (US/India/UK): Imports from 700+ exchanges, auto-calculates gains, generates IRS Form 8949 and Schedule D. Free for 25 transactions, $49/year for unlimited.
- TaxBit (US): Enterprise-grade, preferred by institutional crypto holders. Integrates with TurboTax.
- CoinTracker (US): Best UI, real-time portfolio tracking + tax calculation. Free tier + $59/year paid.
- Cleartax Crypto (India): India-specific crypto tax calculation for ITR filing with exchange integrations including WazirX, CoinDCX, ZebPay.
Crypto Tax FAQ
Tax questions answered