Your income and the length of time you had the cryptocurrency are two factors that may have an impact on your tax burden. Calculate your potential tax liability using our cryptocurrency tax calculator.
Any earnings you make from the selling of cryptocurrencies will be subject to capital gains taxes. When you sell conventional investments like stocks or mutual funds, you also pay this tax.
- The length of time you kept the cryptocurrency before selling it determines the tax rate you pay. You will pay the short-term rate, which is equivalent to regular income tax rates, if you kept it for a year or less. You will pay the cheaper long-term rate if you have held it for more than a year.
- Using the cryptocurrency capital gains tax calculator below, you can get an idea of how much your tax bill from a cryptocurrency sale will be. The calculation is for 2024 cryptocurrency sales with 2025 tax obligations. You must be aware of your taxable revenue for the year as well as the price at which you purchased and sold your cryptocurrency.
Read Also: How is a cryptocurrency exchange different from a cryptocurrency wallet​?
When is my bitcoin tax due?
Both income and capital gains taxes apply to cryptocurrency in the US, depending on when it is earned and when it is sold.
Must Know: How can I invest in cryptocurrency in USA?
What are the key features of a good crypto tax calculator?
You will pay the short-term rate, which is equivalent to regular income tax rates, if you kept it for a year or less.
How can I use our tax calculator to compute crypto taxes?
- Choose whether you're calculating taxes for a single trade or your total gains (many trades) and select the year you're filing for.
- Enter your numbers.
- Examine your anticipated tax liability.
- How are your capital gains taxes calculated?
- Based on your yearly income, our tax calculator determines the Capital Gains Tax band you are in using the data you have supplied. Your projected bill is then determined by applying these tax rates to the capital gains amounts you have input, taking into account the Capital Gains
- Tax free exemption. To provide you with an accurate estimate of your bill, we apply the tax rates proportionately if your income falls into more than one.
Income and capital gains tax rates, which we obtain from the HMRC website, have been revised to reflect the tax increases in the Autumn 2024 Budget. Any losses you may have sustained or carried forward are not taken into account by our capital gains calculator. It doesn't take into account any situations in which your personal allowance could go up or down, any additional tax credits, or if you've already used all your capital gains tax-free allowance.
What happens if I lack the data required to utilize the capital gains tax calculator?
Don't worry if you don't know your numbers; Koinly can help you figure them out. Koinly conducts all the legwork for you when you import your trading history, including figuring out your cost basis and the fair market worth of any cryptocurrency profits. It even automatically accounts for deductible trading expenses.
Must Read: Is Cryptocurrency Safe? How to Safely Invest in Crypto?
How cryptocurrency taxes are calculated by Koinly?
Koinly simplifies cryptocurrency taxes for all of your transactions.
1. Link accounts
In the majority of cases, Koinly automatically supports over 800 different exchanges, wallets, and blockchains. To import your data, just enter your public address, API key, or upload a CSV file.
2. Examine the transactions
With automated mistake detection and step-by-step instructions, make sure your data is imported correctly and your results are accurate.
3. Produce a tax report
Get the tax reports you want, no matter how you file, by upgrading to a premium plan starting at £39. With over 20 cryptocurrency tax reports, including income and HMRC Capital Gains Summary reports, you may also choose to have your accountant take care of it for you.
Christina Berglund 
Your income and the length of time you had the cryptocurrency are two factors that may have an impact on your tax burden. Calculate your potential tax liability using our cryptocurrency tax calculator.
Any earnings you make from the selling of cryptocurrencies will be subject to capital gains taxes. When you sell conventional investments like stocks or mutual funds, you also pay this tax.
Read Also: How is a cryptocurrency exchange different from a cryptocurrency wallet​?
When is my bitcoin tax due?
Both income and capital gains taxes apply to cryptocurrency in the US, depending on when it is earned and when it is sold.
Must Know: How can I invest in cryptocurrency in USA?
What are the key features of a good crypto tax calculator?
You will pay the short-term rate, which is equivalent to regular income tax rates, if you kept it for a year or less.
How can I use our tax calculator to compute crypto taxes?
Income and capital gains tax rates, which we obtain from the HMRC website, have been revised to reflect the tax increases in the Autumn 2024 Budget. Any losses you may have sustained or carried forward are not taken into account by our capital gains calculator. It doesn't take into account any situations in which your personal allowance could go up or down, any additional tax credits, or if you've already used all your capital gains tax-free allowance.
What happens if I lack the data required to utilize the capital gains tax calculator?
Don't worry if you don't know your numbers; Koinly can help you figure them out. Koinly conducts all the legwork for you when you import your trading history, including figuring out your cost basis and the fair market worth of any cryptocurrency profits. It even automatically accounts for deductible trading expenses.
Must Read: Is Cryptocurrency Safe? How to Safely Invest in Crypto?
How cryptocurrency taxes are calculated by Koinly?
Koinly simplifies cryptocurrency taxes for all of your transactions.
1. Link accounts
In the majority of cases, Koinly automatically supports over 800 different exchanges, wallets, and blockchains. To import your data, just enter your public address, API key, or upload a CSV file.
2. Examine the transactions
With automated mistake detection and step-by-step instructions, make sure your data is imported correctly and your results are accurate.
3. Produce a tax report
Get the tax reports you want, no matter how you file, by upgrading to a premium plan starting at £39. With over 20 cryptocurrency tax reports, including income and HMRC Capital Gains Summary reports, you may also choose to have your accountant take care of it for you.