Question 1

Why does the holding period matter so much?

Accepted Answer

Crypto held one year or less before selling is taxed as ordinary income, at rates up to 37% for 2026. Crypto held over a year qualifies for long-term capital gains rates instead — 0%, 15%, or 20% depending on income — which is why the same dollar gain can owe very different tax depending on just a day or two of holding period.

Question 2

Does trading one crypto for another trigger tax?

Accepted Answer

Yes. The IRS treats crypto-to-crypto trades as a taxable disposal of the crypto you gave up, at its fair market value at the time of the trade — not just cashing out to dollars. Each trade needs its own cost basis and proceeds calculation.

Question 3

What about mining or staking rewards?

Accepted Answer

Those are taxed differently — generally as ordinary income at fair market value when received, which then becomes the cost basis for any later capital gain or loss when sold. This calculator covers the sale/trade side only.

Crypto Capital Gains Tax Calculator

How the tax is stacked

Common questions