The Complete Guide to U.S. Crypto Taxes Under the New Rules

The U.S. crypto tax landscape has changed dramatically in 2026, with the IRS redefining how crypto is taxed in the U.S. It now requires centralized exchanges and NFT marketplaces to report on crypto transactions, making crypto tax reporting more transparent and comprehensive.

However, there are some gray areas, particularly in DeFi, where reporting taxes can be difficult. This U.S. crypto taxes guide will help you navigate the new IRS crypto tax rules 2025 requirements, understand your tax obligations, and avoid common mistakes when filing taxes.

Quick Summary — What Changed in U.S. Crypto Taxes? (2025-2026)

As the IRS tightens reporting requirements, investors need a reliable U.S. crypto tax guide to navigate the changes.

New IRS “Broker” definition

Passed in 2021, the  Infrastructure Investment and Jobs Act clarified the definition of a broker to include any person who facilitates the transfer of digital assets on behalf of other people. Based on this new definition, centralized crypto exchanges like Binance US and NFT Marketplaces like Magic Eden US have to report to the IRS. 

The Act also contains several changes that affect how crypto will be taxed. 

Mandatory 1099-DA reporting

The IRS introduced the first dedicated crypto tax reporting form, which is called Form 1099-DA (Digital Asset Information Return). The crypto tax 1099 form is designed to improve transparency when filing crypto income tax. 

Beginning in 2025, brokers now issue this form to their customers who have traded or disposed of digital assets to report sales proceeds, cost basis, and profit and loss from all crypto transactions. 

Centralized exchanges → full reporting obligations

The IRS requires all centralized crypto exchanges like Kraken, Binance US, and Coinbase to track all transactions, including buys, sells, and withdrawals. 

Under the IRS’s crypto broker rules, they must also provide complete profit and loss reporting, cost basis tracking, identity verification, and transaction reporting through the 1099-DA form. 

NFT marketplaces now classified as brokers

NFT marketplaces such as OpenSea, Blur, and Magic Eden US also have the same obligations as centralized crypto exchanges. They must issue 1099-DA reports for NFT sales, including secondary market sales, and creator royalties.

NFT marketplaces such as OpenSea, Blur, and Magic Eden US are now bound by the same crypto broker rules.

DAOs, self-custody interactions, DeFi — still gray zones

The IRS has no well-detailed guidance on Decentralized Autonomous Organizations (DAOs), self-custody wallets, automated market makers (AMMs), and other DeFi platforms. This is mostly due to the decentralized nature of these platforms. 

However, users are expected to self-report relevant transactions and maintain detailed records while using these platforms. The IRS is expected to develop a framework to address all gray zones in 2026.

Threshold changes for Form 8300

All businesses that accept crypto payments are now required to file Form 8300 for payments worth $10,000 and above, whether in a single or multiple transactions. This ensures that large payments are properly tracked for tax and to prevent money laundering.

How Crypto Is Taxed in the U.S.

The IRS treats cryptocurrency as property, which means various crypto-related events can be taxed, and they can be categorized into either capital gains or income events. 

Two Tax Categories: Capital Gains and Income

The U.S. crypto taxes guide says you realize a capital gain or loss when you trade, sell, or spend your crypto, while you make an income when you earn new tokens such as mining rewards, staking rewards, or airdrops.

Crypto = Property

According to IRS Notice 2014-21, cryptocurrencies are considered property. This means that every crypto transaction is treated like the sale or exchange of property, and you must calculate gains or losses based on the fair market value (FMV) at the time of the transaction.

Short-term vs long-term capital gains

Short-term capital gains apply to crypto held for one year or less and are taxed at your ordinary income tax rate, which is between 10% to 37%. Long-term capital gains apply to crypto held for more than one year and are taxed at reduced rates of 0%, 15%, or 20%, depending on your income level. 

In 2025, the threshold for 0% long-term capital gains was $48,350 for single filers.

When crypto is taxed, and when it’s not

According to the IRS crypto tax new rules, you are taxed when you sell, trade, or spend it for a profit, and when you earn new tokens through mining, staking, or airdrops. 

Transfers between your own wallets are not taxable events, as no gain or loss is realized.

Taxable Events (Fully Updated for New Rules)

The U.S. crypto taxes guide for 2026 clearly distinguishes between taxable events and non-taxable ones. 

Moving crypto between your own wallets (NOT taxable)

One of the few non-taxable actions is transferring crypto between wallets you own, similar to transferring money between your various bank accounts. For instance, moving your ETH from an exchange to a hardware wallet does not create taxable income, and the key factor is ownership. 

As long as you maintain full control of the asset during the transfer, the IRS does not treat it as a taxable event. Transfers ≠ taxable events.

Selling crypto for USD

Crypto is considered a property, and selling it will result in income, which can be taxed. This is the clearest way to trigger a taxable event under the IRS crypto tax rules 2025.

Trading one crypto for another

The IRS treats trading of a cryptocurrency for another as a taxable event, even though no fiat is involved. This is because it is seen as selling an asset to purchase another, a transaction that is subject to capital gains tax. This means you must determine the dollar value of the sold token and the one you bought from the trade.

Spending crypto 

Whenever you make a payment, including tipping, with crypto or a crypto debit card, it is considered a disposal by the IRS, and it is subject to tax. The amount disposed of will be the fair market value at the time the payment was made, and your capital gains or loss would be the difference between that value and your cost basis.

Receiving crypto as income

Earnings in crypto come in various forms, ranging from plain ol’ salary paid in crypto to blockchain-native concepts such as mining and staking rewards. 

Salary

Crypto received as compensation, either as a salary, contractor pay, or any kind of compensation, is taxed as ordinary income at its fair market value on the day you receive it.

Mining rewards

The moment mined coins are credited to your wallet, their dollar value counts as income. When you eventually sell or trade those mined coins, you incur a separate capital gain or loss.

Staking rewards

Staking rewards trigger income tax at the time the rewards become accessible to you, not when you choose to claim or trade them. This distinction is important, especially in situations where staking rewards get accumulated over time.

Airdrops

Airdrops are also taxable the moment you gain control over the tokens, regardless of whether you requested or expected them. 

Hard forks

When there’s a fork of a blockchain, if it results in new tokens appearing in your wallet and you have control over them, their fair market value is treated as income and will be taxed.

Creator royalties (NFTs)

Royalties earned from NFTs are taxed as ordinary income. This applies to creators who receive ongoing payments from secondary sales. These royalties are not treated as capital gains because they represent compensation for creative work.

Trading, DEXs & DeFi Tax Rules

Taxation of crypto in decentralized finance (DeFi) is more complex than in centralized exchanges and NFT marketplaces. 

DeFi platforms run on the blockchain, with no singular legal entity in charge. Therefore, it is almost impossible for the IRS to enforce regulations; however, users are still expected to self-report on all taxable transactions. 

Also, the IRS is expected to provide a detailed U.S. crypto taxes guide in 2026 on how to properly tax DeFi transactions.

Swapping tokens on DEXs

Decentralized exchanges like Uniswap and PancakeSwap allow users to trade digital assets on the blockchain through swapping, and this makes it hard for the IRS to track. 

A swap is the exchange of a digital asset for another, which can result in a capital gain or loss. Swaps on decentralized exchanges such as Raydium and 1Inch Network are treated the same as trades on centralized exchanges, in the sense that the IRS expects you to still report them.

LP positions → two taxable events

Providing liquidity to a pool often triggers two taxable events. First, the deposit of assets to the pool may be treated as a disposal, depending on the mechanics of the protocol. Many automated market makers issue liquidity provider (LP) tokens in exchange for deposited assets, and receiving these tokens may constitute a second taxable event.

Liquidity removal

The removal of liquidity from a liquidity pool will often result in capital gains or losses, which must be included when filing your crypto tax.

Earning yield on DeFi

Earning yield on DeFi platforms through mechanisms like lending or yield farming counts as income. 

Regardless of whether rewards are automatically compounded or manually claimed, the IRS expects income to be reported based on the fair market value of the rewards at the time they are earned.

Lending/borrowing

Borrowing in DeFi does not trigger a taxable event. However, the interest you pay may be treated as a disposal of crypto if you make payments using tokens that have appreciated or depreciated. 

Rewards received through lending protocols are treated as income.

Liquidations

Liquidations can result in a capital loss, especially if your collateral is sold at a value lower than its cost basis. DeFi users should track collateral values carefully, as liquidations occur automatically and may not include clear documentation of values.

DeFi wrappers & synthetic tokens

A DeFi wrapper is a crypto token that represents a crypto from another blockchain, allowing the asset to be used on that chain. Synthetic tokens are assets that mimic the price action of an underlying asset without the user holding the asset. 

Both DeFi wrappers and synthetic tokens occupy a gray area in regulation, because in many cases, wrapping tokens does not change ownership; therefore, it cannot be treated as a taxable exchange. However, some wrappers alter your rights over the underlying asset, which may cause the IRS to treat them as a disposal, therefore taxable. 

L2s and cross-chain bridges tax handling

Moving assets across various chains is non-taxable as long as you retain full ownership. When bridging involves minting a wrapped asset or using a third-party liquidity provider, the transaction might be treated as a taxable exchange.

NFT Tax Rules

The taxation of NFTs depends largely on whether the asset is considered a “collectible.” 

Collectibles tax rate (28%) in some cases

NFTs, which meet the IRS’s U.S. crypto taxes guide definition of collectibles, are subject to a maximum long-term capital gains rate of 28%.

Minting an NFT

Minting an NFT is not a taxable event unless you receive tokens or other compensation during the minting process. For creators, the act of minting is considered the creation of property. The taxable event only occurs when the NFT is sold, and the proceeds are treated as ordinary income.

Selling an NFT

When an NFT is sold, it leads to income tax for the creators, since they are earning from the sale of a digital asset, while the buyer gets taxed on capital gains. The buyer should include the gas fees paid during minting or the purchase of the NFT to accurately calculate their capital gain or loss.

Creator royalties

NFT creators usually earn royalties from secondary sales of an NFT, and the IRS classifies this as income, not capital gains. It’s important to note that income tax rates can be significantly higher than tax on capital gains.

Gaming assets

Tokens, play-to-earn NFTs and other gaming assets earned through gameplay are classified as income under current NFT taxes USA guidelines, and will be taxed at their fair market value. 

Future trading of these assets will lead to capital gain or loss depending on the changes in market prices.

Mining, Staking, and Airdrops — Income vs Capital Gains

Mining rewards = ordinary income at FMV

Rewards from crypto mining activities are classified as income and will be taxed based on the fair market value when they are received.

Staking rewards

Staking rewards are considered income as soon as they are available, whether they are claimed or not. This applies to staking on both DeFi and centralized platforms. Selling or disposing of the rewards later may result in capital gains or losses.

Airdropped tokens taxed at the moment of control

These are taxed as income at the moment tokens come under your control, even if they drop in your wallet unsolicited. Subsequent sales may trigger capital gains.

How 1099-MISC forms apply

The crypto tax 1099 form is a tax form used to report income payments of at least $600 or royalty payments of at least $10 made to individuals and entities who are not employees. It applies to payments such as staking rewards, mining rewards, and promotional tokens. 

It is one of the most important crypto broker rules that centralized crypto exchanges like Binance US must provide eligible users with a tax form for.

Airdrops, Forks, Rewards — Special Cases

Token airdrops, network forks and blockchain-issued rewards present special cases that are not readily addressed under existing rules. 

Hard Forks: income if new tokens received

A hard fork occurs when there is an irreversible change to the blockchain, resulting in two branches. 

The hard fork of a chain can lead to taxable events when there are new assets deposited into your wallets. The new assets are considered income by the IRS and will need to be reflected in your crypto income tax.

Airdrops: FMV income

The fair market value of airdropped tokens at the moment you receive them is considered income. Subsequent profits or losses when selling the tokens are subject to crypto capital gains tax.

Incentive programs

Many platforms run incentive programs where users can gain points, which can later be converted to tokens. The conversion of these points to tokens creates taxable income.

Liquidity mining

Liquidity mining rewards are treated as ordinary income, which is also subject to capital gains tax.

New IRS Crypto Reporting Rules

Heading into 2026, there are a few new rules to know as you prepare to report your crypto transactions to the IRS.

Form 1099-DA

Brokers must issue the Digital Asset Reporting Form 1099-DA to users who trigger taxable events. 

The form includes proceeds, cost basis, acquisition dates, disposal dates, and wallet addresses, allowing the IRS to compare taxpayer reports with the information submitted by the brokers in order to reduce underreporting.

Exchanges as “Brokers”

Centralized crypto exchanges are classified as brokers now and are obligated to follow the new crypto taxes new rules. Exchanges must collect and verify customer identities, maintain detailed records of all user transactions, and issue the various tax reporting forms, including the crypto tax 1099 form.

NFT platforms as brokers

NFT marketplaces are also treated as brokers, and must report NFT sales, royalty payments made to creators, and wallet information for taxable transactions.

CeFi → Obligatory KYC reporting

Centralized crypto platforms are required to verify their customers’ identities. The USA Patriot Act and Bank Secrecy Act mandate that all financial institutions, including crypto exchanges, implement Customer Identification Programs. 

DeFi — Not clearly included 

DeFi platforms are not currently covered by IRS crypto reporting rules and are not required to issue tax forms because they often lack identifiable customer data. However, the IRS expects users to self-report.

“Cash-Like Crypto Transactions” Over $10,000

According to the new U.S. crypto taxes guide, businesses that receive over $10,000 in crypto must file Form 8300. This is one of the initiatives meant to curb money laundering using crypto.

Crypto Losses & Tax Strategies

Tax-loss harvesting

Traders often rely on tax-loss harvesting at the end of the year to offset taxable gains. Because crypto is volatile, intentionally selling assets at a loss can reduce tax bills significantly. 

Wash sale rule does NOT apply (yet)

A wash sale is when an investor sells an asset at a loss and immediately buys it back to claim tax deductions on the realized loss. The U.S. wash sale rule prevents this. 

However, it does not yet apply to cryptocurrency, allowing investors to sell at a loss and buy back immediately without penalty.

Offsetting gains

Another strategy investors use to reduce their tax burden is by using losses to offset both short-term and long-term gains. If losses exceed gains, up to $3,000 can be deducted from ordinary income annually, with unused losses carried forward.

Lost/stolen crypto

Lost or stolen crypto can be counted as a deductible if there’s sufficient proof that the crypto was stolen and that it is permanently lost, which means losing access to your wallet doesn’t automatically qualify you for a tax deduction.

Rug pulls and scams

This is treated similarly to losses incurred from theft of crypto. The IRS requires evidence of fraud and permanent loss of funds. Without clear evidence, the deductions will not be allowed.

How to File Crypto Taxes

Filing U.S. crypto taxes requires various forms:

Required IRS forms

• Form 8949 for individual trades, including capital gains or losses.
• Schedule D for total gains and losses for the tax year.
• Schedule C for crypto-related business or crypto mining.
• The new Form 1099-DA, if received from a broker.
•  Form 8300 for businesses accepting large crypto payments of up to $10,000.

Using crypto tax software

Self-reporting taxes on DeFi trades is difficult because taxable transactions are not easily identifiable and lack the clear, structured data the IRS requires. Crypto tax software like Koinly, CoinTracker, TokenTax, and Accointing solve this problem by helping traders generate IRS-ready reports.

• Koinly provides the most support for DeFi protocols, tracking trades and liquidity, and cross-chain activities to generate IRS-ready forms like Form 8949 and Schedule D.
• CoinTracker partnered with Coinbase and is a good choice for users who bridge DeFi and CeFi. It provides accurate tax calculations, including insights into users’ portfolios.
• TokenTax offers automated tax tracking and uses human tax professionals to review the filings and prepare full IRS returns.
• Accointing excels at sorting through messy on-chain data to provide IRS tax reports. It also has a dashboard that tracks users’ portfolios across chains.

Working with a professional

Professional tax help may be necessary for scenarios where a user has triggered taxable events across multiple chains, earned creator royalties, runs a staking business, or heavy yield farming.

Common Mistakes and IRS Red Flags

The IRS has become significantly better at detecting unreported crypto activity. 

• Common mistakes include failing to report trades on decentralized exchanges, not reporting airdrops as income, and errors with cost basis when moving tokens between wallets.  
• Withdrawals from exchanges to wallets are not disposals and should not be reported as sales. However, many users seem to make this mistake.
• NFT royalties often go unreported. Because royalties are income, failing to include them on your return increases audit risk. 
• Similarly, those who trade across L2 networks without tracking each transaction may leave significant gaps in their reporting. 
• Large OTC transactions, especially peer-to-peer sales, may also cause scrutiny if not documented thoroughly.

With blockchain data now cross-referenced with third-party reports, omissions are easier to detect.

What to Expect Next (Crypto Tax Outlook 2026+)

The United States Treasury and the IRS tried to designate DeFi platforms as brokers and have them report transactions via the various tax reporting forms. However, Congress struck this down and further prohibited them from issuing any similar rules without express Congressional authorization.

The IRS is expected to release further U.S. crypto taxes guide for DeFi and other non-custodial activities in the coming months, to clarify tax obligations and improve compliance for U.S. taxpayers.

On the 4th of April, 2025, the SEC published a statement where it clarified that fully backed USD stablecoins can not be treated as securities when used as a means of payment, and this has not changed in 2026.

However, the Financial Stability Board (FSB) has highlighted the need for a global framework to regulate the issuance of stablecoins and reduce risks associated with liquidity. The FSB also recommended that the framework should include data collection and reporting, and cross-border cooperation. The SEC has also called for the development of a comprehensive model to govern the issuance of stablecoins, emphasizing that issuers must meet a clearly defined reserve backing standard.

Self-custody wallet users can expect more regulatory clarity in 2026, thanks to new laws, like the GENIUS Act in the U.S. The act protects personal crypto activities by clarifying that personal uses, like peer-to-peer transfers and transfers between personal accounts, remain permissible, while custodial services are subject to stricter oversight. This aims to protect users while supporting secure, independent crypto management under tighter crypto tax reporting USA obligations.

The IRS currently requires all staking rewards to be reported as income. However, Senator Todd Young, a member of the Senate Finance Committee, argued that taxing staking rewards upon receipt instead of when the rewards are sold unfairly taxes unrealized gains. 

The IRS is expected to issue further guidance, and future rules may align more closely with economic reality. For centralized staking-as-a-service providers, they must report to the IRS and also issue Form 1099-DA.

The Financial Action Task Force (FATF) has issued guidelines to address concerns about money laundering and terror financing in crypto, especially DeFi, citing reports of an increase in the use of crypto and digital assets in fraud and scams. 

The FATF encourages that various jurisdictions should implement its Travel Rule to mitigate risks associated with digital assets.