Unknown state Crypto Tax Calculator

How US Crypto Tax Calculation Works

Capital Gains Tax on Crypto Trading

When you sell or trade crypto, you may owe capital gains tax:

• Short-term gains: Held for 1 year or less - taxed at ordinary income rates (10%, 12%, 22%, 24%, 32%, 35%, 37%)
• Long-term gains: Held for more than 1 year - taxed at preferential rates (0%, 15%, 20%)
• Net Investment Income Tax (NIIT): Additional 3.8% on investment income for high earners

Income Tax on Crypto Activities

Certain crypto activities are treated as ordinary income:

• Staking rewards: Taxed as ordinary income when received
• Mining income: Taxed as self-employment income
• Airdrops: Taxed as ordinary income when received
• DeFi yield farming: Taxed as ordinary income
• Hard forks: May be taxable as income

State Tax Considerations

In addition to federal tax, you may owe state income tax:

• State rates vary: From 0% (Texas, Florida, Washington) to over 13% (California)
• State treatment: Some states follow federal rules, others have different crypto tax policies
• Local taxes: Some cities also impose income taxes

Calculation Method

Our calculator:

1. Applies appropriate federal rates to short-term and long-term gains
2. Adds income tax on crypto income at your marginal rate
3. Calculates state tax based on your location
4. Determines total tax burden and effective rate

Important Considerations

• Wash Sale Rule: Currently doesn't apply to crypto, but proposed legislation may change this
• Cost Basis Methods: FIFO, LIFO, or specific identification - choose carefully
• Record Keeping: Maintain detailed records of all transactions
• Form 8949: Required for reporting crypto transactions
• FBAR/FATCA: May apply if you hold crypto in foreign exchanges

Quality External References

• IRS Digital Assets Guide - Official IRS guidance on crypto taxation
• IRS Form 8949 Instructions - How to report crypto transactions
• IRS Topic 409 - Capital Gains and Losses - Comprehensive CGT information
• AICPA Cryptocurrency Resources - Professional accounting guidance
• FBAR Requirements - Foreign account reporting requirements