US Crypto Tax Guide 2026: IRS Rules Every Holder Must Know
The IRS treats crypto as property. Every transaction can be a taxable event. Here is the complete guide to US crypto taxes in 2026.
The IRS has treated cryptocurrency as property since 2014 (Notice 2014-21). Every sale, exchange, or disposal of crypto is a taxable event. Starting 2026, US brokers (including Steyble for US users) are required to report crypto transactions to the IRS on Form 1099-DA — the era of under-reporting is effectively over for US crypto holders.
Capital Gains Tax on Crypto
- Short-term capital gains (held <1 year): taxed as ordinary income (up to 37%)
- Long-term capital gains (held >1 year): 0%, 15%, or 20% depending on income — significantly better
- Every swap/exchange is a taxable event — including crypto-to-crypto trades
- Gift: giving crypto is not a taxable event for giver (below $18,000 annual gift exclusion)
- Like-kind exchange: does NOT apply to crypto — ruled out by IRS
Income Tax on Crypto
- Mining rewards: ordinary income at fair market value when received
- Staking rewards: ordinary income at fair market value when received (IRS position in 2026)
- Salary in crypto: ordinary income + payroll taxes
- DeFi yield: ordinary income when received — report on Schedule 1
- USDC interest: ordinary interest income — report on Schedule B
Tax Optimisation Strategies
- Hold >1 year: the single biggest tax saver — long-term rates are 0-20% vs short-term 22-37%
- Tax-loss harvesting: sell losing positions to offset gains — no wash-sale rule for crypto (in 2026)
- Harvest in December: realise losses in the same tax year as your gains
- Use a Crypto IRA: iTrustCapital, Bitcoin IRA — tax-deferred or tax-free gains
- Charitable donation: donate appreciated crypto to charity — deduct full value, avoid CGT