Crypto Tax Liability Estimator
Estimate your total crypto tax liability. Calculate taxes owed from ordinary crypto income and capital gains, while automatically offsetting your gains with realized capital losses.
Ordinary Income
Staking rewards, airdrops, salary
Short-Term Gains
Assets held less than a year
Long-Term Gains
Assets held more than a year
Capital Losses
Losses offset ST gains first, then LT gains
After applying your $3,000.00 in capital losses, your taxable short-term gains are reduced to $2,000.00 and your taxable long-term gains are $10,000.00.
Your total estimated tax liability is $2,460.00, which gives you an effective tax rate of 14.47% on your overall crypto profits.
Frequently asked questions
How is crypto taxed?
In most jurisdictions (like the US and UK), cryptocurrency is taxed in two main ways: as Income Tax (for staking rewards, airdrops, or getting paid in crypto) and as Capital Gains Tax (when you sell or trade your crypto for a profit).
What is the difference between Short-Term and Long-Term gains?
If you sell a crypto asset after holding it for less than a year, it is typically subject to short-term capital gains tax, which is often taxed at your ordinary income tax rate. If you hold it for more than a year before selling, it qualifies for long-term capital gains tax, which usually has significantly lower rates.
Can I use losses to offset my taxes?
Yes. Capital losses (selling crypto for less than you bought it for) can be used to offset capital gains. In many tax systems, capital losses first offset short-term gains. If there are still losses left over, they then offset long-term gains.