Taxes · USA
Taxes in United States
The IRS treats cryptocurrency as property, meaning every disposal is a taxable event subject to capital gains tax. Long-term holders benefit from reduced rates of 0%, 15%, or 20%, while short-term gains and crypto income such as staking and mining are taxed as ordinary income up to 37%. The US requires detailed record-keeping of all transactions and has introduced broker reporting requirements under the Infrastructure Investment and Jobs Act effective from 2025.
Income tax
Mining rewards, staking rewards, airdrops, and crypto received as payment are taxed as ordinary income at receipt at fair market value. Rates range from 10% to 37% depending on total income. This also sets the cost basis for future capital gains calculations.
VAT / GST
Exempt. The IRS treats cryptocurrency as property, not currency. No federal VAT or GST exists in the US. Some states may apply sales tax to crypto transactions in limited circumstances, but federal-level VAT or GST does not apply to individual crypto transactions.
Capital gains
Crypto disposals (sales, trades, purchases) trigger capital gains tax. Short-term gains (held under 1 year) taxed as ordinary income up to 37%. Long-term gains (held over 1 year) taxed at 0%, 15%, or 20% depending on taxable income. Net Investment Income Tax of 3.8% may also apply.
Type case, not tax advice: figures describe a single average earner and standard rates; your situation depends on residency, deductions and local rules. Verify with the tax authority before acting. — Fiatmap