Crypto capital gains tax applies whenever you dispose of a cryptocurrency at a profit. A disposal means selling for cash, swapping one coin for another, spending crypto on goods, or gifting it (rules vary). Your gain is the proceeds minus your cost basis — what you originally paid, including fees. How that gain is taxed depends on your country and, in some places, how long you held the asset. This guide covers the 2026 rules for the United States, United Kingdom, Canada and Australia. Everything here is an estimate for general information, not tax advice — confirm with the IRS, HMRC, CRA or ATO.
What counts as a taxable disposal
In every country covered here, cryptocurrency is treated as property or an asset, not as money. That has one big consequence: a taxable event happens far more often than people expect. The common disposals are:
- Selling crypto for fiat currency.
- Swapping one crypto for another (BTC to ETH, ETH to a stablecoin, etc.).
- Spending crypto to buy goods or services.
- Gifting crypto (taxable in some cases; spouse transfers are usually exempt in the UK).
Moving coins between wallets you control is not a disposal, and simply holding is never taxable. To work out the gain on any of these, you need an accurate cost basis — our average cost & cost-basis calculator pools your buys into one weighted-average figure.
United States (IRS)
The US splits gains by a 12-month holding period:
- Short-term (held 12 months or less): taxed at your ordinary income rate, 10%–37% in 2026.
- Long-term (held more than 12 months): taxed at the preferential 0%, 15% or 20% rates, depending on your taxable income.
High earners may also owe the 3.8% Net Investment Income Tax. The IRS allows FIFO or specific-identification cost-basis methods, and from 2026 brokers report transactions on the new Form 1099-DA. See our deep-dive on short vs long-term gains.
United Kingdom (HMRC)
The UK does not use a holding-period split. Instead, every taxpayer gets an Annual Exempt Amount of £3,000 for 2025/26 (down from prior years). Gains above that allowance are taxed at:
- 18% if you are a basic-rate taxpayer, or
- 24% if the gain falls into the higher-rate band.
HMRC requires share-pooling (a weighted-average cost basis). You must report gains over the allowance, or proceeds over £50,000, via Self Assessment by 31 January after the tax year.
Canada (CRA)
Canada includes only 50% of your capital gain in taxable income — the proposed two-thirds inclusion rate was cancelled in March 2025 and never took effect. The included half is added to your income and taxed at your marginal federal rate (the lowest bracket was cut to 14% for 2026), plus provincial tax. Canada uses the adjusted cost base (ACB) method.
Australia (ATO)
Australia rewards long holders with the 50% CGT discount: if a resident individual holds a crypto asset for more than 12 months, only half the gain is taxed. Held 12 months or less, the full gain is taxed at your marginal rate (0%–45%, plus Medicare levy). From 1 July 2027 the discount is scheduled to change to an inflation-based model, but for 2026 the 50% discount stands.
Side-by-side comparison
| Country | Holding-period split | Tax-free allowance | How the gain is taxed |
|---|---|---|---|
| US (IRS) | Yes, 12 months | None (uses brackets) | Short-term: 10–37%; long-term: 0/15/20% |
| UK (HMRC) | No | £3,000 (2025/26) | 18% or 24% above allowance |
| Canada (CRA) | No | None | 50% of gain at marginal rate (+ provincial) |
| Australia (ATO) | Yes, 12 months | None | 50% discount after 12 months, then marginal rate |
You can plug your own numbers into the crypto capital-gains tax estimator, which applies each of these 2026 rules with a country selector.
A worked example
Suppose you bought $20,000 of crypto and sold it for $35,000 — a $15,000 gain — after holding 18 months, on $60,000 of other income:
- US: long-term, so it falls largely in the 15% bracket → roughly $2,250 tax.
- UK (in £): £3,000 allowance leaves £12,000 taxed mostly at 18% → about £2,160.
- Canada: 50% inclusion → $7,500 added to income at your marginal rate.
- Australia: 50% discount → $7,500 taxed at your marginal rate.
These are illustrative; your actual bill depends on your full income and circumstances.
Common pitfalls
The biggest mistakes are forgetting that swaps are disposals, losing track of cost basis across exchanges, and ignoring staking or airdrop income, which is usually taxed separately as ordinary income. We cover these in common crypto tax mistakes and staking rewards and taxes.
Keep records of every transaction — date, amount, value in your local currency, and fees — and you’ll be able to calculate gains accurately and defend them if asked. When in doubt, use a qualified tax professional; this article is an estimate-focused explainer, not personalised advice.