2026 Crypto Capital Gains Tax Calculator
Estimate federal tax on cryptocurrency gains. Enter your sale proceeds, cost basis, holding period, and income to calculate short or long-term capital gains tax plus NIIT — sources cited inline.
Written by Wanyu T | Last reviewed: May 9, 2026
Cryptocurrency is taxed as property by the IRS (Notice 2014-21; IRS Topic 409 Capital Gains). Capital gain = Proceeds − Cost Basis. Short-term gains (held ≤ 1 year) are taxed as ordinary income at marginal rates. Long-term gains (held > 1 year) use the preferential LTCG rate schedule from IRS Rev. Proc. 2025-32 §4.03: 0%, 15%, or 20%, with gains stacked on top of ordinary income to determine which tier applies.
The 3.8% Net Investment Income Tax (NIIT, IRC §1411) requires separately entered MAGI including this gain, and applies to the lesser of net investment income or the MAGI excess above $200,000 (single) / $250,000 (MFJ). Maximum combined LTCG + NIIT = 23.8% federal. Short-term maximum = 40.8% (37% + 3.8%).
Worked example: 1 ETH bought at $2,000, sold for $6,500 after 14 months. Long-term gain = $4,500. Single filer, $80,000 other income. LTCG stacking: $80K is above the $49,450 threshold, so rate = 15%. Tax on gain = $4,500 × 15% = $675. No NIIT (assuming actual MAGI including the gain is $84,500, below $200K).
How to use this calculator
- Enter sale proceeds and cost basis for your crypto transaction.
- Enter the acquisition and sale dates so the holding period can be assessed using calendar dates: one year or less is short-term, more than one year is long-term.
- Enter your ordinary taxable income (other income after deductions, not counting this gain) for LTCG stacking.
- Enter modified adjusted gross income (MAGI), including this crypto gain separately from taxable income so NIIT does not rely on an invalid taxable-income proxy. Select filing status for correct thresholds.
- Results show capital gain, federal tax, NIIT (if applicable), and total tax owed.
Formula and assumptions
gain = proceeds - costBasis
// Short-term: taxed as ordinary income
shortTermTax = gain × marginalRate
// Long-term: stacking algorithm
stackingIncome = ordinaryIncome + gain
ltcgRate = 0% if stackingIncome ≤ $49,450 (single)
= 15% if stackingIncome ≤ $545,500
= 20% above
longTermTax = gain × ltcgRate
// NIIT (IRC §1411)
niitSubject = min(netInvestmentIncome, max(0, MAGI - threshold))
niitThreshold = $200,000 single / $250,000 MFJ
niit = niitSubject × 0.038- LTCG thresholds
- IRS Rev. Proc. 2025-32 §4.03; single $49,450 / $545,500
- Short-term brackets
- Ordinary income brackets per Rev. Proc. 2025-32 §4.01
- NIIT threshold
- $200K single / $250K MFJ; not inflation-adjusted
- State taxes
- Not included; most states tax LTCG as ordinary income
Worked example
Long-term gain: 1 BTC bought $15,000, sold $62,000, single filer, $90,000 other income
Short vs long-term break-even: when does holding matter?
The table below shows federal tax on a $50,000 crypto gain for a single filer with $100,000 ordinary taxable income, comparing short-term (37% marginal bracket for a high-income filer is possible but here at $100K income the rate is 22%) vs. long-term. This illustrates the tax cost of selling early.
| Holding period | Rate | Capital gains tax | NIIT | Total federal tax |
|---|---|---|---|---|
| Short-term (≤ 1 yr) | 22% | $11,000 | $0 | $11,000 |
| Long-term (> 1 yr) | 15% | $7,500 | $0 | $7,500 |
Waiting beyond the one-year anniversary before selling saves $3,500 in federal tax on this transaction — a 31.8% reduction. At $250K ordinary income (NIIT applies): long-term rate would be 15% + 3.8% = 18.8% vs. short-term at 32% + 3.8% = 35.8%.
Limitations
- State capital gains taxes not included — most states tax LTCG as ordinary income.
- Wash-sale rules do not currently apply to crypto (as of 2026), but legislation pending.
- Mining income, staking rewards, and airdrops are treated as ordinary income at FMV — not as capital gains.
- Educational estimate only — not professional tax advice. Consult a CPA for crypto tax planning.
Frequently asked questions
Crypto is taxed as property (IRS Notice 2014-21). Short-term gains (≤ 1 yr) taxed as ordinary income; long-term at 0%, 15%, or 20% per Rev. Proc. 2025-32 §4.03, stacked on ordinary income. NIIT 3.8% (IRC §1411) applies when MAGI exceeds $200K single. A $47,000 long-term gain at 15% = $7,050 federal tax. Crypto losses offset gains; no wash-sale rule in 2026.
Recent updates
- Oct 2026Holding period now uses exact acquisition and sale calendar dates; NIIT requires separately supplied MAGI including the gain. Qualified tax review remains required.
- May 2026Initial launch. 2026 LTCG thresholds per IRS Rev. Proc. 2025-32 §4.03. NIIT per IRC §1411. Short-term rates per Rev. Proc. 2025-32 §4.01.