Crypto Tax Calculator

The Crypto Tax Calculator allows users to calculate their total investment, returns, capital gains, federal and state tax amounts, and net profit after taxes for cryptocurrency transactions, taking into account their holding period and tax bracket.

Use Our Crypto Tax Calculator

How to Use the Crypto Tax Calculator

To effectively use the Crypto Tax Calculator and determine your tax liabilities on cryptocurrency transactions, follow the step-by-step guide below. This calculator helps you compute your total investment, capital gains, and tax amounts, allowing you to assess your financial position and plan your tax payments accordingly.

Step 1: Entering Purchase Details

  • Purchase Price (USD): Input the price at which you bought the cryptocurrency. The minimum valid value is $0.01.
  • Quantity of Crypto: Enter the total quantity of cryptocurrency you purchased. The minimum value is 1e-08.

Step 2: Entering Sale Details

  • Sale Price (USD): Enter the price at which you sold the cryptocurrency. The minimum valid value is $0.01.

Step 3: Select Additional Information

  • Holding Period: Choose between ‘Short Term’ (Less than 1 year) or ‘Long Term’ (More than 1 year), as this affects the federal tax rate calculation.
  • Tax Bracket: Select your federal tax bracket from available options ranging from 10% to 37%.
  • State Tax Rate: Select the applicable state tax rate. Options include 0% (No State Tax) to 13%.

Step 4: Review the Calculated Results

  • Total Investment: Calculated as the product of purchase price and quantity. It shows the initial investment in USD.
  • Total Return: The product of sale price and quantity, representing the gross returns in USD.
  • Capital Gain/Loss: The difference between Total Return and Total Investment, indicating profit or loss.
  • Federal Tax Rate: The applicable federal tax rate based on your holding period and tax bracket.
  • Federal Tax Amount: Calculated federal tax based on capital gain/loss and federal tax rate.
  • State Tax Amount: Calculated based on capital gain/loss and selected state tax rate.
  • Total Tax Amount: The sum of federal and state tax amounts.
  • Net Profit After Tax: The remainder after subtracting the total tax amount from the capital gain/loss.
  • Effective Tax Rate: The effective rate of tax on your capital gain/loss, expressed as a percentage.

By following these steps and inputting accurate information, the Crypto Tax Calculator will help you grasp your tax obligations and net profits with clarity.