Airdrop: what it means for crypto tax
An airdrop is tokens distributed to wallets, often for free or as a reward. Airdrops are frequently taxed as income at their value when received, with that value becoming the cost basis. Spam or scam airdrops should not inflate your income.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
Receive an airdrop worth 300 and you generally have 300 of income and a 300 basis; a worthless spam token should not.
Why it matters for your tax
The wrinkle is valuation and timing when a token has no liquid market yet, and the risk of scam airdrops distorting a report, which is why likely spam is flagged.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
An airdrop is tokens distributed to wallets, often for free or as a reward. Airdrops are frequently taxed as income at their value when received, with that value becoming the cost basis. Spam or scam airdrops should not inflate your income.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.