By Team SalaryCalculate · 9/3/2025
If you’ve bought, sold, or earned crypto, the tax office wants to know. Both the UK and the US treat crypto as taxable — just in slightly different ways. In 2025/26, the rules are clearer than they were a few years ago, but they can still trip people up. The good news is that once you understand the basics, it’s manageable.
In the UK, crypto is usually taxed as either Capital Gains Tax (CGT) or Income Tax, depending on how you got it. Selling Bitcoin at a profit? That’s a capital gain. Receiving tokens from mining or staking? That’s taxable as income. You get an annual CGT allowance (£3,000 in 2025/26) before tax kicks in, but profits above that are taxed at 10% or 20% depending on your income level.
In the US, the IRS also sees crypto as property. Sell or swap it, and you’ll face capital gains tax — short-term (ordinary income rates up to 37%) or long-term (0%, 15%, or 20%). Earn crypto from staking, mining, or airdrops? That’s ordinary income, taxable the year you receive it. For quick estimates, most people use a crypto tax calculator to avoid mistakes.
UK Crypto Tax in 2025/26
Capital Gains
When you sell or swap crypto in the UK, you calculate your profit by subtracting what you paid (the “cost basis”) from what you sold it for. HMRC requires the share pooling method to match buys and sells.
Example:
- Bought 1 ETH for £1,500.
- Sold 1 ETH for £2,200.
- Gain = £700.
| Income Level | Capital Gains Tax Rate (2025/26) |
|---|---|
| Basic Rate | 10% |
| Higher/Additional Rate | 20% |
In the US, matching methods differ — you can often choose FIFO vs LIFO, which can change your gains significantly.
Income Tax
If you’re mining, staking, or receiving crypto as payment for services, it’s treated like income. It’s taxed at your marginal rate and should be reported at the pound value when received.
See HMRC’s guidance on crypto tax for individuals here for current rules and examples.
US Crypto Tax in 2025
Capital Gains
The IRS classifies crypto as property. Gains can be short-term (held under 12 months, taxed at ordinary rates) or long-term (12+ months, taxed at 0%, 15%, or 20%).
Example:
- Bought 1 BTC in March 2024 for $40,000.
- Sold in April 2025 for $60,000.
- $20,000 long-term gain.
Income from Crypto
Staking, mining, and airdrops are ordinary income at fair market value on the day you receive them. When you later sell those coins, any movement since receipt is capital gain or loss.
IRS virtual currency guidance is available on IRS.gov and covers reporting, basis, and income treatment.
Common Edge Cases
Swapping one token for another is a taxable disposal in both countries. Paying for goods in crypto is also a disposal, which can create a gain or loss. Gifts: UK spousal gifts are generally tax-free; in the US, gifts under the annual exclusion are usually not taxable but may require a form if above the limit.
Income vs Capital Gains
It’s crucial to know when something is income versus a gain. Selling tokens you bought is usually a gain. Getting paid in tokens is income. This income vs capital gains guide digs into common mistakes and fixes.
FAQs
Do I pay tax when I move crypto between my own wallets? No. That’s not a taxable event in either country.
Are stablecoins different? No. Selling or swapping stablecoins is still taxable, just like any other crypto.
Do HMRC and the IRS share information? Yes. Both take part in data-sharing with exchanges and other tax authorities.
UK vs US Crypto Tax at a Glance
| UK (2025/26) | US (2025) | |
|---|---|---|
| Capital Gains Allowance | £3,000 tax-free | No personal allowance; all gains considered |
| Capital Gains Rates | 10% (basic), 20% (higher/additional) | 0%, 15%, 20% (long-term); ordinary rates 10–37% (short-term) |
| Income Treatment | Mining/staking/airdrops taxed as income at receipt | Mining/staking/airdrops taxed as ordinary income at receipt |
| Filing Deadline | Self Assessment: 31 Jan 2026 | Tax Day: 15 April 2026 (next business day if holiday) |
Final Thoughts
Treat crypto like any other asset for tax. When it changes hands, there’s usually a tax impact. If you earn it, it’s income. Keep clean records and run estimates with a crypto tax calculator to avoid surprises.