How Much Tax Will I Pay?

Capital Gains Tax (CGT)

The amount of Capital Gains tax that you pay depends on your earnings and how long you have held your assets for. You need to determine if you have held your crypto for short-term or long-term. The holding period begins on the day after you acquired the virtual currency and ends on the day you sell or exchange.

Short Term

• Cryptocurrency held for less than a year.

• Taxed at the ordinary income tax rate (listed below for the 2021 and 2022 tax years).

2022 Tax Year (taxes due April 2023)

10%	$0 - $10,275	$0 - $14,650	$0 - $20,550	$0 - $10,275
12%	$10,276 - $41,775	$14,651 - $55,900	$20,551 - $83,550	$10,276 - $41,775
22%	$41,776 - $89,075	$55,901 - $89,050	$83,551 - $178,150	$41,776 - $89,075
24%	$89,076 - $170,050	$89,051 - $170,050	$178,151 - $340,100	$89,076 - $170,050
32%	$170,051 - $215,950	$170,051 - $215,950	$340,101 - $431,900	$170,051 - $215,950
35%	$215,951 - $539,900	$215,951 - $539,900	$431,901 - $647,850	$215,951 - $323,925
37%	$539,901+	$539,901+	$647,851+	$323,926+

2023 Tax Year (taxes due April 2024)

Tax Rate	Single	Head of Household	Married Filing Jointly	Married Filing Separately
10%	$0 - $11,000	$0 - $15,700	$0 - $22,000	$0 - $11,000
12%	$11,001 - $44,725	$15,701 - $59,850	$22,001 - $89,450	$11,001 - $44,725
22%	$44,726 - $95,375	$59,851 - $95,350	$89,451 - $190,750	$44,726 - $95,375
24%	$95,376 - $182,100	$95,351 - $182,100	$190,751 - $364,200	$95,376 - $182,100
32%	$182,101 - $231,250	$182,101 - $231,250	$364,201 - $462,500	$182,101 - $231,250
35%	$231,251 - $578,125	$231,251 - $578,100	$462,501 - $693,750	$231,251 - $346,875
37%	$578,126+	$578,101+	$693,751+	$346,876+

Long Term

• Cryptocurrency sold after one year.

• The tax rate is 0%, 15%, or 20% dependent on income.

The long term capital gains tax rate is often better than the short term rate so it can sometimes be beneficial to hold crypto for at least a year before disposing of it.

2022 Tax Year (taxes due April 2023)

Tax Rate	Single	Head of Household	Married Filing Jointly	Married Filing Separately
0%	Up to $41,675	Up to $55,800	Up to $83,350	Up to $41,675
15%	$41,676 – $459,750	$55,801 – $488,500	$83,351 – $517,200	$41,676 – $258,600
20%	Over $459,750	Over $488,500	Over $517,200	Over $258,600

2023 Tax Year (taxes due April 2024)

0%	Up to $44,625	Up to $59,750	Up to $89,250	Up to $40,400
15%	$44,626 - $492,300	$59,751 - $523,050	$89,251 - $553,850	$44,626 - $276,900
20%	$492,301+	Over $523,051+	Over $553,851+	$276,901+

Income Tax

Your rate of income tax (tax bracket) depends on your taxable income and your filing status. The United States has a progressive tax system, meaning people with higher taxable incomes pay higher federal income tax rates.

Income tax rates for 2022

Single

10%	$0 to $10,275	10% of taxable income
12%	$10,276 to $41,775	$1,027.50 plus 12% of the excess over $10,276
22%	$41,776 to $89,075	$4,807.50 plus 22% of the excess over $41,776
24%	$89,076 to $170,050	$15,213.50 plus 24% of the excess over $89,076
32%	$170,051 to $215,950	$34,647.50 plus 32% of the the excess over $170,051
35%	$215,951 to $539,900	$49,335.50 plus 35% of the excess over $215,951
37%	$539,901 or more	$162,718 plus 37% of the excess over $539,901

Head of Household

10%	$0 to $14,650	10% of taxable income
12%	$14,651 to $55,900	$1,465 plus 12% of the excess over $14,651
22%	$$55,901 to $89,050	$6,415 plus 22% of the excess over $55,901
24%	$89,051 to $170,050	$13,708 plus 24% of the excess over $89,051
32%	$170,051 to $215,950	$33,148.50 plus 32% of the the excess over $170,051
35%	$215,951 to $539,900	$47,836.50 plus 35% of the excess over $215,951
37%	$539,901 or more	$162,218.50 plus 37% of the excess over $539,901

Married Filing Jointly

10%	$0 to $20,550	10% of taxable income
12%	$$20,551 to $83,550	$2,055 plus 12% of the excess over $20,551
22%	$83,551 to $178,150	$9,615 plus 22% of the excess over $83,551
24%	$178,151 to $340,100	$30,427 plus 24% of the excess over $178,151
32%	$340,101 to $431,900	$69,295 plus 32% of the excess over $340,101
35%	$431,901 to $647,850	$98,671 plus 35% of the excess over $431,901
37%	$647,851 or more	$174,253.50 plus 37% of the excess over $647,851

Married Filing Separately

10%	$0 to $10,275	10% of taxable income
12%	$10,276 to $41,775	$1,027.50 plus 12% of the excess over $10,276
22%	$41,776 to $89,075	$4,807.50 plus 22% of the excess over $41,776
24%	$89,076 to $170,050	$15,213.50 plus 24% of the excess over $89,076
32%	$170,051 to $215,950	$34,647.50 plus 32% of the the excess over $170,051
35%	$215,951 to $323,925	$49,335.50 plus 35% of the excess over $215,951
37%	$323,926 or more	$86,127 plus 37% of the excess over $323,926

You won't pay the same tax rate on your entire income, you will be taxed at the corresponding tax rate for your earnings within each bracket.

Example: Sam is a single filer with $45,000 taxable income, therefore she is in the 22% tax bracket. She pays: 10% on the first $10,275, 12% on the earnings between $10,276 to $41,775 22% on the rest.

Which filing status applies to me?

If you are unsure of your filing status follow the below link for IRS guidance:

Publication 501 (2022), Dependents, Standard Deduction, and Filing Information | Internal Revenue Service