US Crypto Tax Rates for 2023

We can all agree that paying taxes is the least favorite part of investing in crypto. As we are entering a new year, let’s look at the US crypto tax rates for 2023 so that you know how much you owe to the IRS. 

But before that, let’s quickly go over the basics. 

How Cryptocurrency is Taxed?

  • In 2014, the IRS declared that crypto is treated as property. Though at that time, or ever since, the IRS never clarified how they would treat NFTs, from existing tax laws, we can safely assume that NFTs are also treated as property. 
  • Trading one crypto for another, selling crypto for fiat or buying products or services with crypto are all taxable events since you’re disposing of your assets (crypto).
  • On realizing capital gains or losses, you have to report them on Form 8949. 

In some cases, crypto is taxed as income. We will come to that later in the article. This was just the basics of how crypto taxes. Check out this comprehensive guide to crypto taxes in the US to know more. 

Crypto Tax Rates on Long-Term Capital Gains

Tax rateSingle filerMarried filing jointlyMarried filing separatelyHead of household
10%Up to $11,000Up to $22,000Up to $11,000Up to $15,700
12%$11,000 $44,725$22,000 to $89,450$11,000 to $44,725$15,700 to $59,850
22%$44,725 to $95,375$89,450 to $190,750$44,725 to $95,375$59,850 to $95,350
24%$95,375 to $182,100$190,750 to $364,200$95,375 to $182,100$95,350 to $182,100
32%$182,100 to $231,250$364,200 to $462,500$182,100 to $231,250$182,100 to $231,250
35%$231,250 to $578,125$462,500 to $693,750$231,250 to $346,875$231,250 to $578,100
37%More than $578,125More than $693,750More than $346,875More than $578,100

Crypto Tax Rates on Short Term Capital Gains

Tax rateSingle filerMarried filing jointlyMarried filing separatelyHead of household
0%Up to $44,625Up to $89,250Up to $44,625Up to $59,750
15%$44,625 – $492,300$89,250 – $553,850$44,625 – $276,900$59,750 – $523,050
20%More than $492,300More than $553,850More than $276,900More than $523,050

Income Taxes on Crypto

As we mentioned before, there are instances when crypto is taxed as per income tax rates. Here are some scenarios where you might be liable to pay income taxes on crypto – 

  • Mining crypto. Mining crypto is treated as a business practice. Hence, you must pay income taxes on rewards you receive from mining crypto. 
  • If you receive your income in crypto, you must pay income taxes. 
  • If you’re an NFT artist or creator selling NFTs, you’re liable to income taxes. 
  • Rewards and interests received from staking and lending crypto are also treated as income. 

How to Reduce Crypto Taxes

Now that you know the US crypto tax rates of 2023, you might wanna know how you can minimize your taxes as much as possible. There are several tax-saving strategies that crypto investors, or as matter of fact, all investors use to reduce their overall taxes. Strategies like tax-loss harvesting, crypto donations, using different accounting methods, and so much more. 

Check out the 7 Tax-Saving Strategies to Reduce Crypto Taxes to know more. 

How Bitcoin.Tax Can Help You?

“I love filing taxes,” said no one. Not only because you’re paying your hard-earned money to the government but also because the process of filing taxes is really frustrating and exhausting. 

But Bitcoin.Tax makes it easier. With Bitcoin.Tax, all you have to do is upload all the transactions from different exchanges and wallets you have been using and let the software take care of the rest. It will calculate all your capital gains, losses and other tax liabilities, plus so much more.