How crypto mining is taxed
Like staking, mining rewards are usually taxed as income when you receive them, then as a capital gain or loss when you sell. The extra wrinkle is whether you mine as a hobby or a business — which changes what you owe and what you can deduct.
General information, not tax advice. Mining rules differ by country and by whether you mine as a business — verify against your country's guidance or a qualified tax advisor.
The general rule
When you receive mining rewards, you generally have ordinary income equal to the fair market value of the coins at receipt. That value becomes your cost basis, so a later sale produces a capital gain or loss.
Hobby vs business
This distinction drives the tax in many countries:
- Hobby/personal mining — rewards are income, but you usually can't deduct costs like hardware and electricity (and in some countries may not owe self-employment/social charges).
- Business mining — rewards are business income; you can typically deduct equipment, electricity, and other costs, but may owe self-employment / social contributions and have extra filing.
How countries differ
- United States — rewards are ordinary income at receipt; business miners report on a business schedule (with deductions and self-employment tax), hobby miners report as other income. US crypto tax →
- United Kingdom — mining is taxed as income (trading or miscellaneous, depending on scale and organisation); disposals are capital gains. UK crypto tax →
- Germany — mining income is taxable; sustained, organised mining can be treated as commercial activity. Germany crypto tax →
- France — mining falls under the BNC (non-commercial profits) regime at progressive rates. France crypto tax →
How CryptaTax handles mining
- Identifies your mining rewards across wallets and pools
- Values each at its fair market value on receipt
- Classifies it as income under your country's rules automatically
- Tracks the cost basis for accurate capital gains when you later sell
Income report → · Import your exchanges & wallets →
FAQ
Yes. In most countries mining rewards are income at their value when received, and a capital gain or loss applies when you later sell.
Usually only if you mine as a business. Hobby miners generally cannot deduct those costs. Rules vary by country.
Generally at the moment you receive the coins, valued at their fair market value then.
Yes. A capital gain or loss based on the difference between the sale price and the value you reported as income.