US Crypto Tax Guide for 2026 Returns (Filed in 2027)
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In the US, the IRS treats crypto as property. Selling it, swapping it for another coin or spending it creates a capital gain or loss, taxed at 0% to 37% depending on how long you held it and your income. Crypto you earn (staking, mining, pay for work) is ordinary income. Your 2026 return is due April 15, 2027, and this is the first year many brokers report your cost basis to the IRS on Form 1099-DA.
What is taxable and what is not
The IRS answers this in its digital asset FAQ. The short version:
| You did this | Taxable? | How it is taxed |
|---|---|---|
| Bought crypto with dollars | No | Record the cost: it is your basis |
| Moved coins between your own wallets or accounts | No (FAQ Q81) | Keep records; a fee paid in crypto is a small sale |
| Sold crypto for dollars | Yes (Q49) | Capital gain or loss |
| Swapped one coin for another, including stablecoins | Yes (Q64, Q100) | Capital gain or loss on the coin you gave up |
| Paid for something with crypto | Yes (Q62–63) | Capital gain or loss |
| Received crypto as pay or for services | Yes (Q57–58) | Ordinary income at fair market value when received |
| Earned staking rewards | Yes | Ordinary income when you gain control of the rewards (Revenue Ruling 2023-14) |
| Received new coins from a hard fork or airdrop | Yes (Q105–107) | Ordinary income when you can transfer or sell them |
| Received crypto as a gift | Not when received (Q75) | You take over the giver's basis; tax comes when you sell |
Two points catch people out. A coin-to-coin swap is a sale, even if you never touched dollars. And the income you report when you receive staking rewards or pay becomes the cost basis of those coins (Q59), so you do not pay tax on the same value twice when you sell them later.
Short-term vs long-term: the one-year line
How long you held the coin decides the rate (FAQ Q50):
- Held one year or less: short-term. Taxed as ordinary income, at your normal bracket rate from 10% to 37%.
- Held more than one year: long-term. Taxed at 0%, 15% or 20%.
The holding period starts the day after you acquire the coin (Q74). If you bought ETH on March 10, 2025, a sale on March 10, 2026 is still short-term; March 11, 2026 is long-term.
2026 tax rates
The figures below come from IRS Revenue Procedure 2025-32, which sets the inflation-adjusted numbers for tax year 2026.
Long-term capital gains rates by taxable income:
| Filing status | 0% | 15% | 20% |
|---|---|---|---|
| Single | up to $49,450 | $49,451 to $545,500 | over $545,500 |
| Married filing jointly | up to $98,900 | $98,901 to $613,700 | over $613,700 |
| Married filing separately | up to $49,450 | $49,451 to $306,850 | over $306,850 |
| Head of household | up to $66,200 | $66,201 to $579,600 | over $579,600 |
These thresholds apply to your total taxable income, gain included, after deductions. A single filer with $40,000 of taxable salary and a $15,000 long-term gain pays 0% on the first $9,450 of the gain and 15% on the rest.
Ordinary income brackets (short-term gains, staking, mining, pay):
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | up to $12,400 | up to $24,800 | up to $17,700 |
| 12% | to $50,400 | to $100,800 | to $67,450 |
| 22% | to $105,700 | to $211,400 | to $105,700 |
| 24% | to $201,775 | to $403,550 | to $201,750 |
| 32% | to $256,225 | to $512,450 | to $256,200 |
| 35% | to $640,600 | to $768,700 | to $640,600 |
| 37% | over $640,600 | over $768,700 | over $640,600 |
The 2026 standard deduction is $16,100 (single or married filing separately), $32,200 (married filing jointly) and $24,150 (head of household).
Higher earners may also owe the 3.8% net investment income tax on gains. It applies above a modified AGI of $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). Those thresholds are fixed in the law and are not adjusted for inflation.
Losses: the $3,000 rule
Losses offset gains first: short-term losses against short-term gains, long-term against long-term, then across. If you still have a net loss, you can deduct up to $3,000 of it from your other income ($1,500 if married filing separately). Anything above that carries forward to future years with no time limit. A coin that has fallen in value only creates a loss when you sell or otherwise dispose of it; an unrealized drop does not count.
Cost basis: the part that takes the time
Your gain is what you received minus your cost basis: what you paid plus transaction fees (FAQ Q56). Fees you pay when you sell reduce what you received (Q65–66). Fees for moving coins between your own wallets are not part of either (Q53).
Two rules matter in 2026:
- Basis is tracked per wallet and per account. Since January 1, 2025, you cannot pool all your bitcoin across every exchange and wallet into one basis. Revenue Procedure 2024-28 let you allocate your old basis to each wallet as of that date. If you had not dealt with this yet, your tax software or accountant will need to.
- Which coins you sold. If you do not identify specific units, the IRS treats the oldest units in that wallet or account as sold first (Q86–87). Specific identification is allowed if you identify the units by the time of the sale and keep records (Q82). Many exchanges let you choose a method in their tax settings.
Form 1099-DA: what changes for 2026
Starting with 2025 sales, US crypto brokers send customers and the IRS Form 1099-DA. For 2025, brokers reported gross proceeds only. For 2026 sales, brokers must also report cost basis, but only for "covered" assets, according to the IRS instructions for Form 1099-DA:
- Covered: crypto acquired after 2025 in an account where that broker held it for you, and kept there until you sold.
- Noncovered: crypto bought before 2026, or transferred in from another exchange or wallet. The broker reports the proceeds, but basis reporting is voluntary.
That means a 1099-DA can show the full sale price with no cost basis for coins you moved onto the exchange. If you copy that into your return as-is, it looks like your whole sale price is profit. You report the correct basis on Form 8949 yourself.
Other limits of the form: brokers do not report staking rewards on Form 1099-DA, and qualifying stablecoin sales may be left off if your total for the year is $10,000 or less. Activity in self-custody wallets and DeFi is not on any 1099-DA. You must still report all of it (Q108).
The forms you file
- Form 1040, page 1: answer the digital asset question. If you sold, swapped, received or otherwise disposed of crypto in 2026, the answer is "Yes".
- Form 8949: each sale or swap, with dates, proceeds and basis (Q109). Tax software builds this from your transaction history.
- Schedule D: totals from Form 8949.
- Schedule 1: crypto income that is not from a business, such as staking rewards or airdrops (Q110).
- Schedule C and Schedule SE: if you earn crypto as an independent contractor or run a mining or trading business, it is self-employment income (Q60).
Key dates for the 2026 tax year
| Date | What happens |
|---|---|
| December 31, 2026 | Last day for a sale or swap to count in 2026 (check which time zone your exchange uses) |
| Mid-February 2027 | Brokers deliver Form 1099-DA |
| April 15, 2027 | Return and payment due |
| October 15, 2027 | Deadline if you file Form 4868 for an extension. An extension gives more time to file, not to pay |
How to get it done
- Export your full history from every exchange and wallet you used, including years before 2026. Our exchange guides show where each export is and its limits.
- Import everything into one place, match transfers between your own accounts, and fix any coin with missing basis.
- Generate Form 8949 and the income totals, then file yourself or hand the reports to a tax professional.
If you only sold once or twice on one exchange, a spreadsheet and the exchange's own gain/loss report may be enough. With several exchanges, wallets or DeFi activity, software saves a lot of matching by hand.
FAQ
Do I pay tax on crypto I have not sold?
No. Holding crypto, even after a big price rise, is not taxable. Tax applies when you sell, swap or spend it, or when you receive it as income.
Is moving crypto from Coinbase to my own wallet taxable?
No. A transfer between accounts you own is not a sale (IRS FAQ Q81). Keep the record, because your tax software needs it to carry the basis across. If the network fee was paid in crypto, that small amount is treated as disposed of.
What if my 1099-DA shows no cost basis?
That is expected for coins you bought before 2026 or transferred in. Report the actual basis from your own records on Form 8949. Do not leave it at zero, or you will overstate your gain.
Do I have to report crypto if I lost money?
Yes. Sales at a loss are reported too, and reporting them is how you use the loss to reduce your tax, up to $3,000 a year against other income.
Sources
Official pages we used for this guide, last checked Oct 12, 2026. Menus change: if a step doesn't match your screen, the official page is the final word.
- IRS: Frequently asked questions on digital asset transactions
- IRS: Digital assets
- IRS Revenue Procedure 2025-32 (2026 brackets, capital gains thresholds, standard deduction)
- IRS: Instructions for Form 1099-DA
- IRS Revenue Procedure 2024-28 (wallet-by-wallet basis safe harbor)
- IRS Topic 559: Net investment income tax
This guide is general information, not tax, legal or financial advice. Tax rules depend on your country and situation; check with a qualified tax professional before you file.