Crypto tax in the United States (2026)
Short answer
Spending crypto with a card is a disposal, so the gain since you bought it is taxed. Crypto held for one year or less is taxed at your ordinary income rate; held longer, long-term rates of 20% apply.
Estimates based on the current tax year rules, not tax advice.
Worked example
You spend $10,000 of BTC that cost you $6,000.
| Gain | Estimated tax | |
|---|---|---|
| Held one year or less | $4,000 | $480 |
| Held longer | $4,000 | $600 |
Calculate your own case
Estimated tax on this spend (United States, 2026 tax year)
$480
Gain of $4,000 taxed at 12%.
Estimate based on the current tax year rules, not tax advice.
- Amount spent$10,000
- Cost basis-$6,000
- Gain+$4,000
- ExemptionNone
- Estimated tax$480
Cashback
No official guidance exists on crypto card cashback here, so the tool shows no figure.
- Federal income tax only. State tax and the 3.8% net investment income tax are not included.
- Bands are for single filers. Married couples filing jointly have different thresholds.
Keep a record of every card purchase
- Date
- Amount
- Asset
- Cost basis
- Merchant
- Exchange rate
Rules to know
- Federal income tax only. State tax and the 3.8% net investment income tax are not included.
- Bands are for single filers. Married couples filing jointly have different thresholds.
Is crypto card cashback taxed?
There is no official guidance on crypto card cashback yet. Keeping records of every reward is the safe approach.
Keep reading
Frequently asked questions
Is spending crypto with a card taxable in the United States?
Spending crypto with a card is a disposal, so the gain since you bought it is taxed. Crypto held for one year or less is taxed at your ordinary income rate; held longer, long-term rates of 20% apply.
How long must I hold crypto to pay less tax in the United States?
Spending crypto with a card is a disposal, so the gain since you bought it is taxed. Crypto held for one year or less is taxed at your ordinary income rate; held longer, long-term rates of 20% apply.
Is crypto cashback taxed in the United States?
There is no official guidance on crypto card cashback yet. Keeping records of every reward is the safe approach.
Sources
- IRS: tax inflation adjustments for tax year 2026 · checked September 23, 2026
- Rev. Proc. 2025-32, section 3.03 (maximum capital gains rate amounts) · checked September 23, 2026
- IRS: digital assets · checked September 23, 2026