How Much Tax Do You Pay on Crypto? 2026 Tax Rates Explained
Exact 2026 crypto tax rates for short-term and long-term capital gains. Includes income brackets, NIIT, state taxes, and how to calculate what you owe.
How Much You Owe Depends on Two Things
Your crypto tax rate is determined by two factors: how long you held the asset and your total taxable income. Assets held 12 months or less are taxed as short-term capital gains (at ordinary income rates). Assets held more than 12 months qualify for lower long-term capital gains rates.
2026 Short-Term Capital Gains Rates (Ordinary Income)
Short-term crypto gains are taxed at the same rate as your salary, business income, and other ordinary income. The 2026 federal income tax brackets are:
- 10% — Taxable income up to $11,925 (single) / $23,850 (MFJ)
- 12% — $11,926–$48,475 (single) / $23,851–$96,950 (MFJ)
- 22% — $48,476–$103,350 (single) / $96,951–$206,700 (MFJ)
- 24% — $103,351–$197,300 (single) / $206,701–$394,600 (MFJ)
- 32% — $197,301–$250,525 (single) / $394,601–$501,050 (MFJ)
- 35% — $250,526–$626,350 (single) / $501,051–$751,600 (MFJ)
- 37% — Over $626,350 (single) / $751,600 (MFJ)
These are marginal rates — your first dollars of income are taxed at the lower rates. Your crypto gains are stacked on top of your other income, so the rate on those gains depends on where they land in your overall bracket.
2026 Long-Term Capital Gains Rates
Hold crypto more than 12 months and you qualify for preferential rates:
- 0% — Taxable income up to $48,350 (single) / $96,700 (MFJ)
- 15% — $48,351–$533,400 (single) / $96,701–$600,050 (MFJ)
- 20% — Over $533,400 (single) / $600,050 (MFJ)
Example: If you're a single filer with $60,000 of salary and $30,000 of long-term crypto gains, your taxable income is $90,000 (after standard deduction). The long-term gains all fall in the 15% bracket — you owe $4,500 on the crypto gains, not the $6,600+ you'd owe at short-term rates.
The 3.8% Net Investment Income Tax (NIIT)
High earners face an additional 3.8% tax on net investment income under IRC §1411. This applies if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (MFJ). Crypto capital gains are investment income and subject to NIIT when you're above these thresholds. Combined with the 20% top long-term rate, the effective maximum rate is 23.8%.
Ordinary Income Tax on Crypto Received as Income
When you receive crypto — staking rewards, mining income, airdrops, freelance payment — it's ordinary income, not capital gains. You owe income tax at your marginal rate (up to 37%) on the FMV at the time of receipt. The amount you included as income becomes your cost basis for future capital gain calculations.
State Taxes on Crypto
Most states tax capital gains as ordinary income at the state rate. States with the highest state income tax rates include California (13.3%), New York (10.9%), and New Jersey (10.75%). States with no income tax (Florida, Texas, Nevada, Wyoming, etc.) impose no state-level capital gains tax on crypto. See our full Crypto Taxes by State guide for details.
How to Lower Your Tax Rate
The single most impactful strategy: hold assets more than 12 months to qualify for long-term rates. The difference between 37% (short-term) and 20% (long-term) on a $100,000 gain is $17,000. Other strategies include tax-loss harvesting, charitable donations of appreciated crypto, and using an IRA or 401k for crypto exposure.
Blockchain Smart Tax tracks holding periods automatically and flags assets approaching the 12-month mark so you can decide whether to sell before or after the long-term threshold.
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
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