How NFTs are taxed
NFTs are taxed as property in most countries — so selling one is a capital gain or loss, earning from them is income, and (in the US) some NFTs can be hit with a higher collectible rate. This guide covers the essentials and how CryptaTax handles it.
General information, not tax advice. NFT rules differ by country and the US collectible rules are still being finalised — verify against your country's guidance or a qualified tax advisor.
The general rules
- Buying an NFT with crypto is a disposal of that crypto — so you may have a capital gain or loss on the coins you spent, even before anything happens to the NFT.
- Selling or swapping an NFT is a capital gain or loss — sale proceeds minus your cost basis (purchase price plus fees/gas).
- Creators who earn from minting, selling, or royalties generally have ordinary income.
The US collectible rule (the 28% cap)
The US may treat some NFTs as collectibles. Under the IRS's "look-through" approach, if the asset an NFT represents is a collectible (art, gems, trading cards), the NFT is treated as one too — and long-term gains on collectibles can be taxed at up to 28%, rather than the usual 20% top rate.
Two things to keep straight: the 28% is a cap, not a flat rate (your actual rate is your ordinary bracket, capped at 28%), and it only applies to long-term holdings (held more than a year). NFTs with non-collectible utility — domain names, in-game items, membership passes — generally aren't collectibles. US crypto tax →
US NFT marketplaces also began reporting gross proceeds on Form 1099-DA from 2025.
How countries differ
Outside the US, NFTs are generally taxed as property under each country's normal capital gains rules (with creator income taxed as income) — see your country guide for specifics.
How CryptaTax handles NFTs
- Tracks NFT purchases (including the crypto disposal when you buy with crypto), sales, and swaps
- Calculates capital gains with your cost basis (price plus gas and fees)
- Separates creator income (mints, sales, royalties) from investor gains
- Flags potential US collectible treatment for long-term holdings
Capital gains report → · Income report → · Import your wallets →
FAQ
Yes. Selling or swapping an NFT is a capital gain or loss, and earning from NFTs as a creator is income. Buying an NFT with crypto can also trigger a gain on the crypto you spend.
In the US, some NFTs are treated as collectibles, and long-term gains on collectibles can be taxed at up to 28%, a cap based on your bracket, applying only to holdings of more than a year.
No. Only those treated as collectibles, and only on long-term gains. NFTs with non-collectible utility generally use normal rates.
Yes. Spending crypto to buy an NFT is a disposal of that crypto, so you may have a capital gain or loss on it.
Income from minting, selling, and royalties is generally ordinary income.