How to Use This Crypto Tax Estimator
This calculator estimates the capital gains tax you would owe when selling cryptocurrency in the United States or Canada. Enter your proceeds, your original cost basis, whether you held short- or long-term, your jurisdiction, and your income, and it returns your estimated tax owed, the effective rate on the gain, and your net proceeds after tax. It is a planning estimate, not tax advice.
How Crypto Is Taxed in the United States
Capital gain = Proceeds − Cost basis Short-term (< 1 yr) = taxed as ordinary income at your bracket Long-term (1 yr+) = 0%, 15%, or 20% based on taxable income
The US treats crypto as property. If you held it for less than a year, the gain is stacked on top of your income and taxed at your ordinary federal bracket. If you held it for a year or more, it qualifies for the lower long-term capital-gains rates of 0%, 15%, or 20%, determined by your taxable income. High earners may also owe an additional 3.8% net investment income tax, which this simplified estimator does not include.
How Crypto Is Taxed in Canada
Taxable capital gain = Capital gain × 50% (inclusion rate) Tax owed = Taxable gain × your marginal rate (federal + provincial)
Canada does not distinguish between short- and long-term holdings. Instead, 50% of your capital gain is included in your income and taxed at your combined federal and provincial marginal rate. On gains above $250,000 in a year the inclusion rate can rise, but for most sales the 50% rate applies. Because the rate is your marginal rate, your province and income both matter.
Reducing Your Crypto Tax
In the US, simply holding for more than a year moves you from ordinary rates to the long-term 0/15/20% brackets, which is often the single biggest lever. In both countries, harvesting losses on other assets can offset your gains, and timing a sale for a lower-income year reduces the rate applied. Keep meticulous records of your cost basis for every purchase, since sloppy records are the most common cause of overpaying. Always confirm the specifics with a qualified tax professional before filing.
Frequently Asked Questions
How much tax do I pay on crypto gains?
In the US, short-term gains (held under a year) are taxed as ordinary income at your bracket, while long-term gains are taxed at 0%, 15%, or 20% based on income. In Canada, 50% of the gain is added to your income and taxed at your marginal rate — there is no short vs long distinction.
Do I owe tax if I only sold crypto at a loss?
No — a capital loss creates no tax owed and can be used to offset capital gains on other assets, lowering your overall bill. In both the US and Canada, net capital losses can generally be carried forward to future years.
How can I reduce my crypto capital gains tax?
Holding for over a year in the US drops you from ordinary rates to the 0/15/20% long-term rates. Harvesting losses to offset gains, and timing sales for a lower-income year, also help. This tool is an estimate only — confirm your specific situation with a tax professional.