Crypto Tax Calculator

Use our free crypto tax calculator to find out how much taxes you need to pay if you’re living in Canada or the United States. Our calculator is also good to use as a crypto capital gains tax calculator to help you get an instant answer based on the province or state you come from since there are different crypto tax rates for each.

Finding out how much cryptocurrency you need to save for tax season can be hard sometimes, especially if you’re a big spender. It’s best to save up at least 30% of your crypto earnings and pay this every quarter, twice per year, or even once per year to keep the IRS and Canada Revenue Agency off your back. Use the crypto tax calculator whether you’re mining cryptocurrencies or your portfolio is making crazy gains to easily calculate how much to put away.

How to Use the Crypto Tax Calculator

The Crypto Tax Calculator is simple to use and provides you with accurate tax calculations for your cryptocurrency taxes. Here’s a detailed guide to help you use the calculator:

1. Choose Your Country

The first step is to select the country where you file your taxes—either United States or Canada. This determines the specific tax rates and rules the calculator will apply to your crypto gains and losses. Once you select a country, the calculator will automatically adjust for the appropriate federal and local tax brackets.

2. Select Your State or Province

After choosing your country, use the dropdown menu to select your state (US) or province/territory (Canada). Each state and province has its own tax rates that can vary widely. For example, some US states like Florida and Texas have no income tax, while others like California have higher tax rates. In Canada, provinces like Alberta have lower rates, while others like Nova Scotia have higher ones. Selecting your location ensures the most accurate tax calculation for your region.

3. Input Your Crypto Gains

In the Total Capital Gains field, enter the total dollar amount of your profits from selling or trading cryptocurrency. For example:

• If you purchased Bitcoin for $20,000 and sold it for $25,000, your capital gain is $5,000.
• Enter that $5,000 as your total gains.

4. Input Your Crypto Losses

In the Total Capital Losses field, enter the total dollar amount of your losses from selling or trading cryptocurrency. For instance:

• If you sold Ethereum for $2,000 but initially purchased it for $3,000, your loss is $1,000.
• Enter that $1,000 in the losses field.

The calculator will subtract your losses from your gains to determine your net capital gains.

5. Click “Calculate Tax”

After entering your details, click the red “Calculate Tax” button to generate your results. The button has a 3D design for ease of visibility and interaction. Within seconds, the calculator will provide you with:

• Net Capital Gains: Your total profit after accounting for losses.
• Taxable Amount: The amount subject to taxes.
• State/Province Tax Owed: The exact tax amount owed to your local government.
• Federal Tax Owed: The federal tax owed based on your taxable gains.
• Total Tax Owed: The combined amount of federal and state/provincial taxes.

6. Review Your Results

The results section is easy to read and breaks down all the key numbers:

• If you have net losses, the calculator will notify you that you don’t owe taxes and may even be able to use those losses to offset other income.
• If you have gains, you’ll see the exact amount of taxes owed at both the federal and state/provincial levels.

The Crypto Tax Calculator saves you time and effort to properly prepare for tax season, eliminating the need for manual calculations. It’s perfect for crypto traders, investors, or even miners who need a quick and accurate way to estimate their tax liability. Whether you’re filing taxes or just planning for the next tax season, this crypto taxes helps you stay ahead of tax season.

Why Use the Crypto Tax Calculator?

Getting ready for tax season is nerve-wracking and can be a pain to deal with if you accidentally have a bunch of capital gains from cryptocurrencies, especially since the price of crypto fluctuates so much. Sometimes giving away 30 percent of your money isn’t very appealing, and if you think it is, then you’re nuts. Like me, I’m not rich and am always happy when my crypto rises a bit, but then comes tax season, and I have to give up 30 percent of my gains.

Sometimes we don’t think about taxes when we’re making money. Scrolling across social media and seeing tax memes and ads from advertisers reminds us that we also have to pay taxes, taking our good moods away. Every financial advisor is going to recommend saving at least 30% of your gains and income toward taxes and paying that every quarter, making the bill a little smaller.

How much taxes do you need to pay on your crypto capital gains? That depends on where you live. We added the rates for each province in Canada and each state if you live in America. The average rate across the board between provincial/state and federal taxes is around that 30% mark. Some of us bought cryptocurrencies early and made huge capital gains, while some people buy to gamble and lose lots when the prices fall. Everyone has to pay taxes, including those who collect gold and silver. Selling junk gold and junk silver can also be considered capital gains, depending on whether you sell it as a commodity or a collectible item. 90% of the time, people sell scrap gold and silver for the melt value.

Keeping the IRS and CRA happy is important, as not paying taxes can result in huge fines. In most cases, if you miss payments, they will put you on a payment plan and only charge around 5% interest. However, if you actively try to hide the fact that you made gains with your crypto portfolio, they will come after you with legal consequences. It is always best just to pay your taxes and use our crypto tax calculator to help you plan and save how much you will need to pay.

Keep These Tax Tips in Mind

Trading in bitcoin and other cryptocurrencies can be fun. However, you need to be aware that if you receive payments in crypto, spend crypto, or make a profit off crypto investments, the IRS wants you to take them into account when you file your taxes.

When you buy and sell stock or securities, the IRS has a way to verify what you’ve done: your brokerage firm tells the IRS. However, the IRS has no such system in place to stay informed about your crypto transactions. However, these days, the IRS requires you to declare on Form 1040, whether you’ve been trading in any virtual currency, and puts this declaration in a prominent place at the top of the form. It can be hard to pretend that you didn’t know what you were doing.

If you take part in cryptocurrency dealings, it’s important to keep the following ideas in mind for better tax compliance.

Maintain detailed transaction logs

When you buy cryptocurrency at a certain price and then later spend it or sell it at a higher price, the profit needs to be reported. However, to do so, you need to keep evidence of the prices at which you bought and sold your currency. The IRS accepts the prices reported by blockchain explorers.

If you’ve held your cryptocurrency for only a few months, this attracts an ordinary tax rate. Holdings that you retain longer than a year can be taxed at up to 20 percent. If you’ve made a loss on your crypto investments, you get to offset your income by as much as $3,000 each year.

Use a major American exchange

When you use an American crypto exchange like Coinbase, Gemini, Schwab, Fidelity, or Robinhood, they help you easily obtain all the records that you need to be able to furnish information to the IRS.

Decentralized exchanges and overseas exchanges don’t offer easy-to-use tax records. You’ll need to go through all your transactions by hand, write down the date on each transaction, the market value of your coin on that date, the gains or losses you made, and so on. Getting your records in order can become messy and time-consuming.

Employ a crypto-tracking app

Crypto tracking software packages like Coin Tracker and Koinly are designed to aggregate information from multiple exchanges that you may use, put it all together, and give you a ready-to-use tax form. However, such software can be fallible and unpredictably leave out information. While it can do the bulk of the work for you, you always need to go over its findings manually, or at least hire someone to do it for you. Whatever tax information you put together with such software, or any other method, it’s important to retain it for three years (beyond which, the IRS cannot summon records in an audit).

Crypto can be a passion or a profit center, but it’s important to understand that the IRS cares about what you do with it. With these tips in mind, you should be able to understand how to go about remaining compliant.

Final Thoughts

Understanding how much to save and pay is crucial. No one likes parting with 30% of their earnings, but knowing what you owe gives you control and peace of mind. Use the calculator, plan smart, and keep the tax agencies happy while you focus on growing your portfolio. At the end of the day, it’s all about making sure your gains stay your gains—and that means staying organized and prepared.