How Much Tax Will I Pay?
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.
- Cryptocurrency held for less than a year.
- Taxed at the ordinary income tax rate (listed below for the 2021 and 2022 tax years).
2021 Tax Year (taxes due April 2022)
2022 Tax Year (taxes due April 2023)
Tax Rate | Single | Head of Household | Married Filing Jointly | Married Filing Separately |
|---|---|---|---|---|
10% | $0 - $9,950 | $0 - $14,200 | $0 - $19,900$0 - $19,900 | $0 - $9,950 |
12% | $9,951 - $40,525 | $14,201 - $54,200 | $19,901 - $81,050 | $9,951 - $40,525 |
22% | $40,526 - $86,375 | $54,201 - $86,350 | $81,051 - $172,750 | $40,526 - $86,375 |
24% | $86,376 - $164,925 | $86,351 - $164,900 | $172,751 - $329,850 | $86,376 - $164,925 |
32% | $164,926 - $209,425 | $164,901 - $209,400 | $329,851 - $418,850 | $164,926 - $209,425 |
35% | $209,426 - $523,600 | $209,401 - $523,600 | $418,851 - $628,300 | $209,426 - $314,150 |
37% | $523,601+ | $523,601+ | $628,301+ | $314,151+ |
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+ |
- 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.
2021 Tax Year (taxes due April 2022)
2022 Tax Year (taxes due April 2023)
0% | Up to $40,400 | Up to $54,100 | Up to $80,800 | Up to $40,400 |
15% | $40,401 - $445,850 | $54,101 – $473,750 | $80,801 – $501,600 | $40,401 - $250,800 |
20% | $445,850+ | Over $473,750 | Over $501,600 | $250,800+ |
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 |
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.
Single
Head of Household
Married Filing Jointly
Married Filing Separately
10% | $0 to $9,950 | 10% of taxable income |
12% | $9,951 to $40,525 | $995 plus 12% of the amount over $9,950 |
22% | $40,526 to $86,375 | $4,664 plus 22% of the amount over $40,525 |
24% | $86,376 to $164,925 | $14,751 plus 24% of the amount over $86,375 |
32% | $164,926 to $209,425 | $33,603 plus 32% of the amount over $164,925 |
35% | $209,426 to $523,600 | $47,843 plus 35% of the amount over $209,425 |
37% | $523,601 or more | $157,804.25 plus 37% of the amount over $523,600 |
10% | $0 to $14,200 | 10% of taxable income |
12% | $14,201 to $54,200 | $1,420 plus 12% of the amount over $14,200 |
22% | $54,201 to $86,350 | $6,220 plus 22% of the amount over $54,200 |
24% | $86,351 to $164,900 | $13,293 plus 24% of the amount over $86,350 |
32% | $164,901 to $209,400 | $32,145 plus 32% of the amount over $164,900 |
35% | $209,401 to $523,600 | $46,385 plus 35% of the amount over $209,400 |
37% | $523,601 or more | $156,355 plus 37% of the amount over $523,600 |
10% | $0 to $19,900 | 10% of taxable income |
12% | $19,901 to $81,050 | $1,990 plus 12% of the amount over $19,900 |
22% | $81,051 to $172,750 | $9,328 plus 22% of the amount over $81,050 |
24% | $172,751 to $329,850 | $29,502 plus 24% of the amount over $172,750 |
32% | $329,851 to $418,850 | $67,206 plus 32% of the amount over $329,850 |
35% | $418,851 to $628,300 | $95,686 plus 35% of the amount over $418,850 |
37% | $628,301 or more | $168,993.50 plus 37% of the amount over $628,300 |
10% | $0 to $9,950 | 10% of taxable income |
12% | $9,951 to $40,525 | $995 plus 12% of the amount over $9,950 |
22% | $40,526 to $86,375 | $4,664 plus 22% of the amount over $40,525 |
24% | $86,376 to $164,925 | $14,751 plus 24% of the amount over $86,375 |
32% | $164,926 to $209,425 | $33,603 plus 32% of the amount over $164,925 |
35% | $209,426 to $314,150 | $47,843 plus 35% of the amount over $209,425 |
37% | $314,151 or more | $84,496.75 plus 37% of the amount over $314,150 |
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 $9,950, 12% on the earnings between $9,951 to $40,525 22% on the rest.
If you are unsure of your filing status follow the below link for IRS guidance:
Last modified 10mo ago