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Cryptocurrency Tax Rates: What You Need to Know
Short-Term Capital Gains Tax Rates
The short-term capital gains tax rates that apply to cryptocurrency are the same as the federal income tax brackets. This means that the tax rate you will pay on your cryptocurrency gains will depend on your taxable income. The following table shows the short-term capital gains tax rates for 2023:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $41,675 | 0% |
| $41,676 – $44,725 | 10% |
| $44,726 – $89,475 | 12% |
| $89,476 – $178,950 | 22% |
| $178,951 – $216,500 | 24% |
| $216,501 – $539,900 | 32% |
| $539,901 – $1,077,350 | 35% |
| Over $1,077,350 | 37% |
Long-Term Capital Gains Tax Rates
The long-term capital gains tax rates that apply to cryptocurrency are lower than the short-term capital gains tax rates. This means that you will pay less tax on your cryptocurrency gains if you hold your cryptocurrency for more than one year. The following table shows the long-term capital gains tax rates for 2023:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $41,675 | 0% |
| $41,676 – $44,725 | 10% |
| $44,726 – $89,475 | 12% |
| $89,476 – $178,950 | 15% |
| $178,951 – $216,500 | 20% |
| $216,501 – $539,900 | 25% |
| $539,901 – $1,077,350 | 28% |
| Over $1,077,350 | 37% |