Marginal rate: what it means for crypto tax
Your marginal rate is the tax rate that applies to your next unit of income or gain, often the top of a progressive scale. Because crypto gains can stack on top of your other income, they may be taxed at your marginal rate rather than a flat one.
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
A gain that pushes you into a higher band is taxed at that band's rate, so the same trade can cost more in a high-income year.
Why it matters for your tax
This is why two people can make the identical trade and owe different amounts: their surrounding income differs, so the gain lands in a different band.
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
Your marginal rate is the tax rate that applies to your next unit of income or gain, often the top of a progressive scale. Because crypto gains can stack on top of your other income, they may be taxed at your marginal rate rather than a flat one.
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.