How to Calculate Crypto Tax

What is Crypto Tax?

Cryptocurrency is treated as property for tax purposes in most jurisdictions. Selling, swapping, or spending crypto triggers a capital gains event.

Formula

Capital gain = Sale price - Cost basis

Step-by-Step Guide

1Capital gain = Sale price - Cost basis
2Short-term (held < 1 year): taxed as ordinary income in the US
3Long-term (held >= 1 year): lower capital gains rates apply

Worked Examples

Input

Bought 0.5 BTC at $20,000, sold at $45,000, 20% tax rate

Result

Gain = $12,500, tax = $2,500, net profit = $10,000

Frequently Asked Questions

What is Crypto Tax Calc?

Cryptocurrency is treated as property for tax purposes in most jurisdictions. Selling, swapping, or spending crypto triggers a capital gains event

How accurate is the Crypto Tax Calc calculator?

The calculator uses the standard published formula for crypto tax calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Crypto Tax Calc calculator use?

This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Crypto Tax Calc calculator use?

The core formula is: Capital gain = Sale price - Cost basis. Each step in the calculation is shown so you can verify the result manually.

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