BullHow crypto is usually taxed
In many countries, selling crypto for more than you paid creates a capital gain. The gain is usually the sale value minus your cost basis (what you paid, including fees). Some countries also tax swaps between coins, spending crypto, or income from staking and mining.
Formula
Example
You bought crypto for 5,000 USD and sold it for 8,000 USD, paying 20 USD in fees. The gain is 2,980 USD. At a 15% tax rate the estimated tax is 447 USD.
Why your real tax can be different
- Some countries use lower rates for assets held longer than a year, others have tax-free amounts or no tax on crypto at all.
- Losses can sometimes reduce the tax on other gains.
- How you match buys and sells (for example first in, first out) changes the cost basis.
Check the rules where you live or ask a tax professional before you file.
Frequently asked questions
What tax rate should I use?
The capital gains rate that applies to you in your country. If you are not sure, ask a local tax adviser.
Are losses included?
If the sale value is lower than the cost, the result shows a loss and no tax.
Is this tax advice?
No. It is a simple estimate to help you plan.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
Crypto Tax Basics: Gains, Losses and Cost Basis
A simple overview of how crypto is commonly taxed: capital gains, cost basis, taxable events and record keeping. General information, not tax advice.