How crypto airdrops are taxed

Free tokens aren't always free of tax. In many countries an airdrop is income at the value you receive it, then a capital gain or loss when you sell — though the treatment varies more between countries than staking or mining does.

General information, not tax advice. Airdrop rules differ by country and on the specifics of the drop — verify against your country's guidance or a qualified tax advisor.

The general rule

Where an airdrop is taxed as income, you have ordinary income equal to the fair market value of the tokens when you gain control of them. That value becomes your cost basis, so a later disposal produces a capital gain or loss.

Some countries don't tax certain airdrops on receipt — in which case there may be no income, and the gain (often from a low or zero cost basis) is taxed only when you sell. Which path applies can depend on why you received the tokens (for example, in return for a service vs nothing at all).

How countries differ

• United States — airdrops are generally ordinary income at fair market value when you have control, then a capital gain or loss on sale. US crypto tax →
• United Kingdom — if you did nothing in return, an airdrop may not be income (taxed only as a capital gain on disposal); if received for a service or expectation, it's income. UK crypto tax →
• Germany — airdrops can be taxable as "other income," subject to a small allowance. Germany crypto tax →
• South Korea — crypto income tax is deferred until 2027, so airdrops generally aren't taxed yet. South Korea crypto tax →

How CryptaTax handles airdrops

• Identifies airdrops received across your wallets
• Values each at its fair market value on receipt
• Applies your country's treatment automatically — income, an allowance (e.g. Germany), or deferral (e.g. South Korea)
• Tracks the cost basis for accurate gains on later disposal

Income report → · Import your exchanges & wallets →