Crypto Tax Rate 2026: Short-Term vs Long-Term Capital Gains
2026 crypto tax rates at a glance. Exact brackets for short-term and long-term capital gains, NIIT surcharge, and strategies to get into the lower bracket.
The Two-Tier System: Short-Term vs Long-Term
Your crypto tax rate hinges on one critical factor: how long you held the asset before selling. The IRS divides capital gains into two categories with very different tax treatment.
- Short-term: Held 12 months or less → taxed at ordinary income rates (10%–37%)
- Long-term: Held more than 12 months → taxed at preferential rates (0%, 15%, or 20%)
The 12-month holding period is measured from the day after acquisition to the date of sale. A coin bought on January 15, 2025 and sold on January 15, 2026 is still short-term — you need to sell on January 16, 2026 or later for long-term treatment.
2026 Long-Term Capital Gains Brackets
- 0% rate: Single filers with taxable income up to $48,350; married filing jointly up to $96,700
- 15% rate: Single $48,351–$533,400; MFJ $96,701–$600,050
- 20% rate: Single over $533,400; MFJ over $600,050
Capital gains are stacked on top of your other income. If you have $40,000 in salary and $20,000 in long-term crypto gains, your gains start at the $40,000 income level. All $20,000 of gains fall within the 0% bracket for a single filer — zero federal tax on those gains.
2026 Short-Term Capital Gains Rates
Same as ordinary income. For a single filer:
- 10% on income up to $11,925
- 12% on $11,926–$48,475
- 22% on $48,476–$103,350
- 24% on $103,351–$197,300
- 32% on $197,301–$250,525
- 35% on $250,526–$626,350
- 37% over $626,350
The NIIT: Extra 3.8% for High Earners
If your modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly), the Net Investment Income Tax applies at 3.8% on your net investment income, which includes crypto capital gains. This brings the effective top long-term rate to 23.8% (20% + 3.8%).
Crypto Income Tax Rates
Not all crypto creates capital gains. Staking rewards, mining income, airdrops, and interest are ordinary income — taxed at the same marginal rates as your salary. If you're in the 32% bracket and receive $10,000 in staking rewards, you owe $3,200 plus state taxes.
Comparing Short-Term vs Long-Term: Real Dollar Impact
On a $100,000 crypto gain for a single filer earning $150,000 total income:
- Short-term rate: 32% bracket → ~$32,000 federal tax on the gain
- Long-term rate: 15% bracket → ~$15,000 federal tax on the gain
- Difference: $17,000 saved by waiting one more day past the 12-month mark
This is why holding period management is one of the highest-ROI tax strategies for crypto investors. Blockchain Smart Tax shows you the exact holding period for every lot and flags assets approaching the 12-month threshold.
State Tax Rates
Most states treat capital gains as ordinary income at the state rate. California (13.3%) is the highest — Californians at the top bracket effectively pay 37% (federal) + 3.8% (NIIT) + 13.3% (state) = 54.1% marginal rate on short-term gains. No-income-tax states (Florida, Texas, Nevada, Wyoming, Washington, South Dakota, Alaska, Tennessee, New Hampshire) have 0% state capital gains tax. See our Crypto Taxes by State guide.
Handle Crypto Tax Calculation Automatically
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How we compare to other crypto tax platforms:
- Koinly ($49+/year) — established platform with strong exchange integrations and a large user community
- CoinTracker ($59+/year) — polished interface with strong Ethereum and exchange support
- CoinLedger ($49+/year) — competitive pricing with good NFT and exchange support
- Blockchain Smart Tax (from $25/year) — all cost basis methods free on every plan, automatic wallet discovery across 550+ chains, spam filtering, free during beta with 10,000 transactions
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