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Recap HomeIRS Virtual CurrenciesUK Tax GuideSA Tax Guide
  • Cryptocurrency Tax Guide for US Individuals
    • Virtual Currency & Cryptocurrency
    • Who are Recap?
  • CRYPTOCURRENCY TAX
    • Do I Need to Pay Tax on my Crypto?
    • Which Taxes Apply?
      • Capital Gains Tax (CGT)
      • Income Tax
      • Non-Taxable Transactions
    • How Much Tax Will I Pay?
    • Capital Gains Tax
      • Calculating the Capital Gains and Losses
      • Cost Basis Methods
      • Disposal proceeds
        • Non Taxable Events
        • Taxable Events
        • Donating cryptocurrency to a charitable organization
        • Gifting cryptocurrency to another person
    • Income Tax
      • Receiving cryptocurrency from mining
      • Receiving cryptocurrency rewards
      • Forks
      • Airdrops
      • Tax on Tokenswaps and Mainnetswaps
    • Deductibles and Reducing Capital Gains
  • TRANSACTION TYPES
    • 💷Selling Crypto for Fiat
    • 🛍️Purchases using Crypto
    • 🔄Exchanging one crypto for a different crypto
    • 🎗️Donations to Qualified Charities
    • 🎁Gifts
    • 🎈Airdrops
    • 🤝Staking
    • 💸Transfers
    • 🍴Forks
    • ⛏️Mining
    • 👛Employment income
    • 🚨Lost & Stolen Crypto
    • 💧Liquidity Pools
    • 🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)
    • 💼Crypto Loans
    • 💎Lending Rewards
    • 🪞Reflections Rewards
    • 👥Referral Income
    • 💳Cashback
    • 🎨NFTs (Non Fungible Tokens)
    • 🎮Play-to-earn gaming NFTs
  • Record Keeping
  • Reporting Income and Gains to the IRS and Paying the Tax
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On this page
  • Capital Gains Tax (CGT)
  • Short Term
  • Long Term
  • Income Tax
  • Income tax rates for 2022
  • Which filing status applies to me?

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  1. CRYPTOCURRENCY TAX

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).

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+

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.

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

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

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

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

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

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:

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Last updated 2 years ago

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