Mining: what it means for crypto tax
Mining means earning crypto by validating proof-of-work transactions. Like staking, mined coins are commonly treated as income at their value on receipt, which then sets their cost basis.
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
Mine coins worth 200 on the day received and you have 200 of income; that 200 is also your basis when you later sell them.
Why it matters for your tax
Mining can also raise questions of whether the activity is a hobby or a business, which changes how it is taxed in some countries.
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
Mining means earning crypto by validating proof-of-work transactions. Like staking, mined coins are commonly treated as income at their value on receipt, which then sets their cost basis.
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.