Guide
Crypto Taxes in the US for 2026
The IRS treats crypto as property. Selling, swapping or spending it is taxable. Held more than one year, a gain is long-term and taxed at 0%, 15% or 20%; otherwise at your ordinary rate.
New for 2026: brokers report cost basis on Form 1099-DA for digital assets acquired in a custodial account from January 1, 2026. Gross proceeds have been reported since 2025.
Updated November 14, 2026. General information, not tax advice.
- 1 yearheld for long-term rates
- 0, 15, 20%long-term capital gains rates
- $3,000of net losses against income per year
- 8949form for each sale
Example
| Step | Amount |
|---|---|
| Sold in June 2026 | $30,000 |
| Bought in March 2025, cost basis | $20,000 |
| Long-term gain (held more than one year) | $10,000 |
| Tax at 15% (single, taxable income $80,000) | $1,500 |
Sold within one year, the same gain would be short-term and taxed at your ordinary income tax rate.
The rules and their sources
What is taxable
- Virtual currency is property, and the general tax rules for property apply (Notice 2014-21, Q&A-1).
- Selling for dollars, swapping one coin for another and paying for goods or services are taxable dispositions (IRS FAQ on digital asset transactions, Q62 to Q66).
- Moving coins between your own wallets is not a sale, and only holding is not reported (Form 1040 instructions 2025, Digital Assets).
Short term and long term
- Long-term means held more than one year; exactly one year is still short-term (26 U.S.C. § 1222).
- The holding period starts the day after you acquire the coin (IRS FAQ on digital asset transactions, Q50).
- Short-term gains are taxed as ordinary income at graduated rates (IRS Topic 409).
- 2026 long-term rates: 0% up to $49,450 of taxable income for single filers and $98,900 for married filing jointly, 15% up to $545,500 and $613,700, 20% above (Rev. Proc. 2025-32, § 4.03).
- Net investment income tax of 3.8% above $200,000 of modified adjusted gross income for single filers and $250,000 for joint filers (26 U.S.C. § 1411).
Losses
- Net capital losses offset up to $3,000 of ordinary income a year, $1,500 if married filing separately (26 U.S.C. § 1211(b)).
- The rest carries forward without a time limit and keeps its short-term or long-term character (26 U.S.C. § 1212(b)).
Staking mining and airdrops
- Staking rewards are income at fair market value when you gain dominion and control, also when staking through an exchange (Rev. Rul. 2023-14).
- Mined coins are gross income at fair market value on the day received (Notice 2014-21, Q&A-8).
- An airdrop after a hard fork is ordinary income when received. A hard fork without new coins is not income (Rev. Rul. 2019-24).
Forms and cost basis
- Report each sale on Form 8949 and the totals on Schedule D. Since tax year 2025, digital assets use boxes G to L (Form 8949 instructions).
- Staking, mining and fork income go on Schedule 1. Crypto received in a business or as an independent contractor goes on Schedule C (IRS, Digital assets).
- Answer the digital asset question on Form 1040 even without a 1099-DA: yes if you received, sold, swapped or spent crypto (Form 1040 instructions).
- Since January 1, 2025, basis is tracked per wallet or account. Without specific identification, FIFO applies within each wallet (Treas. Reg. § 1.1012-1(j)).
- Form 1099-DA shows gross proceeds for sales from 2025 and basis for coins acquired in a custodial account from 2026 (Treas. Reg. § 1.6045-1, TD 10000).
What is not law
- No de minimis exemption and no wash sale rule for crypto are enacted. Section 1091 covers stock or securities (26 U.S.C. § 1091).
- H.R. 10357, the Digital Asset Tax Certainty Act, passed the Ways and Means Committee on September 16, 2026. As of November 14, 2026, the full House has not voted (House Committee on Ways and Means).
Frequently asked questions
How is crypto taxed in the US?
As property. Gains from selling, swapping or spending are capital gains: long-term at 0%, 15% or 20% after more than one year, short-term at ordinary rates (Notice 2014-21, 26 U.S.C. § 1222).
Is swapping one crypto for another taxable?
Yes. A swap is a taxable disposition of the coin you give up (IRS FAQ on digital asset transactions, Q64 to Q66).
Are staking rewards taxable?
Yes, as ordinary income at fair market value when you gain control of them, including through an exchange (Rev. Rul. 2023-14).
How much crypto loss can I deduct?
Losses first offset gains. Up to $3,000 of the rest reduces ordinary income each year, and the remainder carries forward (26 U.S.C. §§ 1211(b) and 1212(b)).
What is Form 1099-DA?
A broker form for digital assets. It shows gross proceeds for sales since 2025 and, from 2026, cost basis for coins acquired in a custodial account (Treas. Reg. § 1.6045-1).
Does the wash sale rule apply to crypto?
Not as of November 14, 2026. Section 1091 covers stock or securities, and a bill to extend it has not passed the House (26 U.S.C. § 1091).
Sources
13 sources with links
- IRS Notice 2014-21 (Internal Revenue Bulletin 2014-16)
- IRS: Frequently asked questions on digital asset transactions
- Rev. Proc. 2025-32, 2026 inflation adjustments
- Rev. Rul. 2023-14 on staking rewards (IRB 2023-33)
- Rev. Rul. 2019-24 on hard forks and airdrops (IRB 2019-44)
- 26 U.S.C. § 1222, holding periods
- 26 U.S.C. § 1211, limitation on capital losses
- 26 U.S.C. § 1411, net investment income tax
- Instructions for Form 8949
- IRS: Digital assets
- 26 CFR § 1.1012-1, basis per wallet
- 26 U.S.C. § 1091, wash sales of stock or securities
- House Committee on Ways and Means, September 16, 2026: H.R. 10357 approved in committee