How crypto staking is taxed
Staking rewards are taxed twice over their life in most countries: once as income when you receive them, and again as a capital gain or loss when you later sell. This guide explains the general treatment, the main country differences, and how CryptaTax handles it.
General information, not tax advice. Staking rules differ by country and are still evolving — verify against your country's guidance or a qualified tax advisor.
The general rule: income at receipt, then capital gains
In most jurisdictions, when you receive staking rewards you have ordinary income equal to the fair market value of the tokens at the time you gain control of them. That value also becomes your cost basis — so when you later sell, swap, or spend those tokens, you have a capital gain or loss on the difference.
So the receipt-day value matters twice: it's your income now, and it sets your gain later. Getting it right at receipt is what keeps the rest of the chain correct.
How countries differ
- United States — rewards are ordinary income when you gain "dominion and control" (Rev. Rul. 2023-14), reported as other income; later sale is a capital gain. (A court case, *Jarrett*, challenges this, but the IRS position stands.) US crypto tax →
- United Kingdom — staking rewards are taxable as income; later disposals fall under capital gains. UK crypto tax →
- Germany — rewards are income at receipt, with a separate allowance for "other income," and staking doesn't extend the one-year holding period for the tokens themselves. Germany crypto tax →
- South Korea — crypto income tax is deferred until 2027, so rewards generally aren't taxed yet. South Korea crypto tax →
A note on liquid staking
Liquid staking (e.g. receiving a token like stETH for your staked ETH) adds complexity — the deposit may itself be a taxable exchange, and rebasing tokens can create income as they accrue. Treatment is unsettled, so this is a good place to get professional advice.
How CryptaTax handles staking
- Identifies your staking rewards across exchanges and wallets
- Values each reward at its fair market value on receipt in your currency
- Classifies it as income, applying country rules automatically (such as Germany's allowance, or South Korea's deferral)
- Tracks the cost basis so your later disposals are calculated correctly
Income report → · Import your exchanges & wallets →
FAQ
In most countries, yes. Rewards are usually income at their value when you receive them, then a capital gain or loss when you sell.
Generally when you gain control of them (can sell, transfer, or use them), valued at that moment, not only when you sell.
Yes. You have a capital gain or loss based on the difference between the sale price and the value you already reported as income.
Usually not. Even small rewards are typically reportable. Some countries have small allowances; check your country guide.