Crypto taxes can be confusing, but getting them right is essential. Here's what you need to know for 2026.
Taxable Events
- Selling crypto for fiat
- Trading one crypto for another
- Spending crypto on goods/services
- Receiving crypto as payment
- Mining and staking rewards
- Airdrops
Non-Taxable Events
- Buying crypto with fiat
- Holding crypto
- Transferring between your own wallets
- Gifting (up to annual limits)
How Gains Are Taxed
Short-term (held < 1 year)
Taxed as ordinary income at your regular tax rate.
Long-term (held > 1 year)
Taxed at lower capital gains rates (0%, 15%, or 20%).
Record Keeping
Track every transaction: date, amount, cost basis, and fair market value. Use crypto tax software like Koinly, CoinTracker, or TaxBit.
Tax Minimization Strategies
- Hold over one year for long-term rates
- Tax-loss harvesting
- Donate appreciated crypto
- Consider opportunity zones
Disclaimer: This is educational content, not tax advice. Consult a tax professional.