Question 1

How is crypto taxed in the US?

Accepted Answer

In the US, selling or trading cryptocurrency is a taxable event. Held under 1 year, gains are taxed as short-term capital gains at your ordinary income rate. Held over 1 year, gains are long-term at 0%, 15% or 20% based on income. This tool estimates both scenarios plus the 3.8% NIIT surcharge for higher earners.

Question 2

What is the difference between short-term and long-term crypto gains?

Accepted Answer

Short-term gains (held 1 year or less) are taxed at your ordinary income tax rate (10-37% in the US). Long-term gains (held over 1 year) enjoy lower rates of 0%, 15% or 20% depending on your taxable income and filing status.

Question 3

Does this calculator include state taxes?

Accepted Answer

The base calculation covers US federal capital gains tax and the NIIT surcharge. You can add an optional state tax rate to estimate your total liability, since state rates vary widely from 0% (Texas, Florida) to 13.3% (California).

Question 4

Is my financial data stored anywhere?

Accepted Answer

No. All calculations happen entirely in your browser using JavaScript. No cost basis, sale price or income data is sent to any server.