Ordinary income: what it means for crypto tax
Ordinary income is income taxed at your normal income tax rates, as opposed to capital gains rates. Crypto received as staking, mining, airdrops or payment is commonly treated as ordinary income at its value on receipt, separate from any later capital gain.
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 staking reward worth 100 is ordinary income of 100 now; a later sale for 130 is a separate 30 capital gain.
Why it matters for your tax
Classifying a receipt as income versus a gain changes the rate and the allowances that apply, so the distinction is one of the first forks in any crypto tax question.
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
Ordinary income is income taxed at your normal income tax rates, as opposed to capital gains rates. Crypto received as staking, mining, airdrops or payment is commonly treated as ordinary income at its value on receipt, separate from any later capital gain.
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.