How do you calculate capital gains on Cryptocurrency?
John Hall
Updated on March 09, 2026
A capital gain (profit/loss) occurs when you sell or trade cryptocurrencies and is calculated by subtracting the price you bought the crypto for (cost-basis) from the price you are selling it for. Capital Gain = Selling Price – Cost basis.
How do you determine how much capital gains tax you owe?
Determine your realized amount. This is the sale price minus any commissions or fees paid. Subtract your basis (what you paid) from the realized amount (how much you sold it for) to determine the difference. If you sold your assets for more than you paid, you have a capital gain.
How do I avoid capital gains tax on collectibles?
Taxpayers who recognize collectible gains during a year could offset them by selling short-term and long-term capital assets that have unrealized losses (to the extent the taxpayer owns capital loss property).
How much should I set aside for capital gains tax?
2020 capital gains tax rates
| Long-term capital gains tax rate | Your income |
|---|---|
| 0% | $0 to $40,000 |
| 15% | $40,001 to $441,450 |
| 20% | $441,451 or more |
| Short-term capital gains are taxed as ordinary income according to federal income tax brackets. |
How much tax do I pay on Crypto gains?
Long-Term Capital Gains and Losses. Currently, there are three tax rates for long-term capital gains – 0%, 15%, and 20%. The rate you pay depends on your income.
Are capital gains counted as income?
Capital gains are generally included in taxable income, but in most cases, are taxed at a lower rate. Short-term capital gains are taxed as ordinary income at rates up to 37 percent; long-term gains are taxed at lower rates, up to 20 percent.
When to use a capital gains tax calculator?
The calculator on this page is designed to help you estimate your projected long-term capital gains tax obligation based on the income made from your assets as well as the nuances of your financial circumstances. Short-term capital gains occur when you earn revenue on an asset that has been sold within a year of ownership.
What are the tax brackets for capital gains?
Now, calculate your capital gains, but start in the middle of the “$18,451 — $74,900” bracket. Your income “ate” the first parts of the capital gains brackets. So your capital gains taxes are: $4,900 * 0% + $5,100 * 15% = $765.
How are short term and long term capital gains taxed?
There are short-term capital gains and long-term capital gains and each is taxed at different rates. Short-term capital gains are gains you make from selling assets that you hold for one year or less. They’re taxed like regular income. That means you pay the same tax rates you pay on federal income tax.
How are capital gains taxed in the UK?
See how it works Your total capital gains tax (CGT) owed depends on two main components: Your overall earnings determine how much of your capital gains are taxed at 10 % or 20 %. Our capital gains tax rates guide explains this in more detail. In your case where capital gains from shares were £20,000 and your total annual earnings were £69,000:
