In recent tax years the IRS has become increasingly invested in ensuring that taxpayers are paying the appropriate taxes on their digital assets.
The official IRS definition of digital assets includes:
Virtual currency (Bitcoin, Ethereum, etc)
Nonfungible tokens (NFTs)
Tokenized assets
Stable coins
Security tokens
Any other assets that are digital and have value, established ownership, and are discoverable
Short Term Transactions
Short term capital gains (assets held less then one year) are taxed up to 37% as ordinary income.
*Numbers published in this chart are for tax year 2023.
Filing Status | 10% Tax rate | 12% Tax Rate | 22% Tax Rate | 24% Tax Rate | 32% Tax Rate | 35% Tax Rate | 37% Tax Rate |
|---|---|---|---|---|---|---|---|
Single | $0 to $11,599 | $11,600 to $47,149 | $47,150 to $100,524 | $100,525 to $191,949 | $191,950 to $243,724 | $243,725 to $609,350 | $609,351 and up |
HOH | $0 to 16,549 | $16,550 to $63,099 | $63,100 to $100,499 | $100,500 to $191,949 | $191,950 to $243,699 | $243,700 to $609,349 | $609,350 and up |
MFJ/QW | $0 to $23,199 | $23,200 to $94,299 | $94,300 to $201,049 | $201,050 to $383,899 | $383,900 to $487,449 | $487,450 to $731,199 | $731,200 and up |
Long Term Transactions
Long term gains (assets held greater than one year) are taxed at a lower rate of either 0-20%.
*Numbers published in this chart are for tax year 2024.
Filing Status | 0% | 15% Tax Rate | 20% Tax Rate |
|---|---|---|---|
Single | $0 to $47,025 | $47,026 to $518,900 | $518,901 and up |
HOH | $0 to $63,000 | $63,001 to $551,350 | $551,351 and up |
MFJ/QW | $0 to $94,050 | $94,051 to $583,750 | $583,751 and up |
MFS | $0 to $47,025 | $47,026 to $291,850 | $291,850 and up |