Crypto tax basics: the questions everyone starts with
The starting-point questions: when crypto is actually taxed, how a gain is worked out, and the handful of terms, disposal, cost basis, income versus capital gains, that everything else builds on.
General information, not tax advice. Crypto tax rules vary by country and change over time, check your local rules or a qualified adviser before filing.
The short version
Almost all crypto tax confusion clears up once two ideas land. First, in most countries you are not taxed for holding crypto, you are taxed when you dispose of it (sell, swap or spend) and realise a gain. Second, crypto you receive as income, staking, mining, airdrops or payment, is usually taxed at its value on the day you get it. Everything below is a variation on those two ideas.
The numbers, which rate, which allowance, how long you must hold, are set by your country and change over time. These answers cover the shared principles; for the figures that apply to you, use your country page or the free calculator.
New to the vocabulary? The crypto tax glossary defines every term in plain English, and the other FAQ categories cover the rest.
Questions
FAQ
In most countries, yes, but only on the right events. You typically owe tax when you sell, swap, or spend crypto at a gain, or when you receive it as income (staking, mining, airdrops, payment). Simply buying and holding is not taxable. Whether you owe anything, and how much, depends on your country and your total gains and income for the year, see your [country's rules](/en/crypto-tax/).
No. Buying crypto with fiat and holding it is not a taxable event in the vast majority of jurisdictions. Tax is triggered when you dispose of it or earn income from it, not while it simply sits in your wallet, even if its value has risen.
Usually. Selling crypto for fiat currency is a disposal, and any gain over your cost basis is a capital gain that may be taxable. If you sold at a loss, there's no tax on that disposal, and the loss can often be used to offset other gains.
Gain = proceeds − cost basis. Proceeds are what you received on disposal (in your local currency); cost basis is what the asset cost you, including fees. When you've bought the same coin at different times, a cost basis method (FIFO, LIFO, HIFO, or an average) decides which lots are consumed first. The method your country allows can change the result, the [calculator](/en/crypto-tax-calculator/) shows an estimate for a single disposal.
Cost basis is what you paid to acquire a crypto asset, including transaction fees. It's the number your gain or loss is measured against, so an accurate basis is the single most important part of a correct report. Our [cost basis guide](/en/crypto-tax-guide/cost-basis/) walks through FIFO, LIFO and HIFO with a worked example.
They apply to different events. Income tax is charged when you receive crypto as earnings, staking, mining, airdrops, salary, valued on the day you get it. Capital gains tax is charged when you dispose of crypto for more than it cost you. The same coins can attract both over their life: income tax on receipt, then capital gains tax on the later gain. The rates and rules for each are set by your country.
Yes, the [crypto tax calculator](/en/crypto-tax-calculator/) gives an instant estimate for a single disposal in your country, with no account needed and nothing leaving your browser. It's an estimate for one sale, not a full return, but it's a quick way to see roughly what a gain would cost you before you build a complete report.