Crypto tax
Last reviewed November 1, 2026
In both the US and the UK, selling, swapping or spending crypto is usually a taxable event. Simply buying and holding is not.
Tax depends on where you live and your full financial picture. This page covers the basic rules in the US and the UK; for anything beyond simple cases, talk to a tax professional.
United States
The IRS treats digital assets as property. Selling crypto, swapping one coin for another or spending it is a disposal, and you owe capital gains tax on any gain. Coins held more than a year qualify for long-term rates; shorter holdings are taxed as ordinary income. Staking and mining rewards count as income when you receive them. Form 1040 asks every filer whether they received or disposed of digital assets.
Form 1099-DA
Starting with 2025 transactions, US brokers report gross proceeds from crypto sales on the new Form 1099-DA. For assets acquired from 2026 onwards, they also report cost basis. The IRS will see your sales, so keep your own records of what you paid.
United Kingdom
HMRC treats most crypto as a capital asset. Selling, swapping, spending or gifting it (except to a spouse or civil partner) is a disposal for capital gains tax. Gains above the annual exempt amount of £3,000 are taxed at 18% or 24% depending on your income. Staking and mining rewards are generally taxed as income.
UK share pooling
UK rules pool all your units of the same coin and use an average cost, with special rules for coins bought back within 30 days of a sale. Crypto tax software can handle this if you import every transaction.
Keep records
Save every trade, transfer and price at the time. Exchanges close and data disappears. Our average cost calculator is handy for a quick check, but it is not a substitute for proper tax software.