Bitcoin Tax in the US
Bitcoin is property: held more than a year, gains are taxed at the long-term rates of 0%, 15% or 20% (crypto isn't a collectible); held a year or less, at ordinary income rates (10–37%). Swapping one crypto for another is a sale. Brokers report sales on Form 1099-DA from 2025, with cost basis from 2026.
Facts checked 26 October 2026 · Not financial, legal or tax advice
At a glance
| What you sell | How the gain is taxed | Notes |
|---|---|---|
| Bitcoin and other crypto | Long-term: 0%, 15% or 20%. Short-term: ordinary rates. | Plus NIIT. 2026: 0% up to $49,450 taxable income (single), 20% above $545,500. |
How bitcoin gains are taxed
- The IRS treats bitcoin as property. Selling, spending or swapping it for another crypto is a disposal.
- Held over a year: long-term rates of 0%, 15% or 20% (crypto is not a collectible). Held a year or less: ordinary rates.
- If you don't identify which coins you sold, they are treated as first in, first out; specific identification is allowed with records.
- The 3.8% NIIT can apply above the income thresholds.
Reporting
- Report sales on Form 8949 and Schedule D.
- Crypto brokers report gross proceeds on Form 1099-DA for sales from 1 January 2025, and cost basis for coins bought in a custodial account from 2026.
Losses
- Capital losses offset capital gains; up to $3,000 a year ($1,500 married filing separately) of net loss can be deducted from other income, and the rest carries forward.
Bitcoin Tax in the US: FAQ
How is bitcoin taxed in the US?
As property: gains on bitcoin held over a year are taxed at 0%, 15% or 20%, and gains on bitcoin held a year or less at ordinary income rates. Swapping crypto for crypto or spending it counts as a sale.
What is Form 1099-DA?
The form crypto brokers use to report your sales to the IRS: gross proceeds from 2025, and cost basis for coins bought in a custodial account from 2026.
Can I deduct bitcoin losses?
Yes. Capital losses offset gains, and up to $3,000 a year of net loss can be deducted from other income, with the rest carried forward.
Sources (10)
- IRS Topic 409: capital gains and losses
- IRS Notice 2023-27 (collectibles definition)
- IRS Topic 559: Net Investment Income Tax
- SPDR Gold Shares FAQ (2026)
- Kiplinger: 2026 capital gains thresholds
- IRS: virtual currency FAQ
- IRS: correction to Form 1099-B instructions (precious metals)
- IRS: final digital asset broker regulations
- IRS: Form 1099-DA instructions
- IRS: like-kind exchanges limited to real property
General information about the rules for individual investors, checked October 2026. Tax depends on your circumstances and residence; check with the tax authority or an adviser. Not tax advice.