Understanding how crypto tax brackets work is essential. CoinLedger provides insights to help you navigate them effectively.
Here’s a breakdown of tax rates by income level.
Tax Rate Single Married Filing Jointly Married Filing Separately Head of Household
0% Up to $47,025 Up to $94,050 Up to $47,025 Up to $63,000
15% $47,026 – $518,900 $94,051 – $583,750 $47,026 – $291,850 $63,001 – $551,350
20% Over $518,900 Over $583,750 Over $291,850 Over $551,350
Short-term capital gains/ordinary income tax rate
If you’ve disposed of cryptocurrency after less than 12 months of holding OR earned cryptocurrency income, you’ll need to pay ordinary income tax.
Here’s a breakdown of tax rates by income level.
Tax Rate Single
Married Filing Jointly
Married Filing Separately
Head of Household
10% $0 to $11,600 $0 to $23,200 $0 to $11,600 $0 to $16,550
12% $11,601 to $47,150 $23,201 to $94,300 $11,601 to $47,150 $16,551 to $63,100
22% $47,151 to $100,525 $94,301 to $201,050 $47,151 to $100,525 $63,101 to $100,500
24% $100,526 to $191,950 $201,051 to $383,900 $100,526 to $191,950 $100,501 to $191,950
32% $191,951 to $243,725 $383,901 to $487,450 $191,951 to $243,725 $191,951 to $243,700
35% $243,726 to $609,350 $487,451 to $731,200 $243,726 to $365,600 $243,701 to $609,350
37% $609,351 or more $731,201 or more $365,601 or more $609,351 or more
Not sure how much you’ll be paying in crypto taxes? Check out our free crypto tax calculator. Save 10% CRYPTOTAX10
How do cryptocurrency tax brackets work?
It’s important to remember that most taxpayers don’t pay a single flat tax rate on their entire income. Instead, they pay progressively higher tax rates on different portions of income.
For example, a taxpayer who earned $25,000 income won’t pay a flat 12% tax. Instead, they’ll pay 10% on the first $11,600 and 12% on the next $13,400.
Crypto tax rates example USA