How to Calculate Crypto Taxes in 2026: Key IRS Updates and Global Tax Trends
In 2026, tax filing is getting stricter for digital assets because reporting is more standardized and mismatches stand out faster. With a clean record, crypto taxes become ordinary math instead of a late-season scramble.
Crypto Taxes: IRS updates that shape 2026 compliance
In the U.S., virtual currency remains treated as property for federal tax purposes. The major change is broker reporting: Treasury and the IRS issued final regulations that use Form 1099-DA for certain dispositions tied to transactions on or after January 1, 2025.
The IRS instructions for Form 1099-DA describe a transition where brokers are not required to report basis for sales effected in 2025, while 2026 and beyond move into mandatory reporting of gross proceeds and basis for covered digital assets. For many filers, that means more proceeds data appears before basis becomes complete, so crypto taxes still depend on a personal ledger.
The ledger comes first
A defensible return starts with a full-year ledger across every exchange account, wallet, and app used. It should include trades, swaps, and fees with timestamps. Transfers between wallets owned by the same person are usually not taxable disposals, but they preserve holding period and basis, so they must be recorded. Missing transfers are a common reason crypto taxes look inflated.
What usually triggers tax
Taxable moments usually begin with a disposal, meaning the taxpayer gave up one asset for something else. Selling crypto for cash is a disposal. Swapping one token for another is typically a disposal of the first token and an acquisition of the second. Spending crypto to buy a product, service, or NFT is usually a disposal as well. Some activity creates ordinary income first, such as staking rewards or being paid in crypto, and those units can later create capital gain or loss on sale. Getting the categories right early keeps crypto taxes clean later.
How gains and losses are computed
For capital transactions, the core math is proceeds minus cost basis, adjusted for fees. Proceeds are the value received at the time of disposal, typically measured in dollars for U.S. reporting. Cost basis is what was paid to acquire the asset, often including certain acquisition-related fees. Holding period then drives short-term versus long-term treatment.
A simple example: a token acquired for $1,200 with a $15 fee added to basis has a $1,215 basis. If it is later sold for $1,700 and a $20 fee reduces proceeds, proceeds are $1,680 and gain is $465. This is the core of crypto taxes.
Lot selection and why it matters more now
When the same asset is acquired at different prices, the taxpayer must determine which units were disposed of. If specific identification is supported with adequate documentation, it can produce a more precise result than a blanket method; if not, many filers rely on a default approach such as FIFO. As reporting improves, lot tracking increasingly shapes crypto taxes by determining which basis is attached to each disposal.
Income events to handle carefully
Revenue Ruling 2023-14 states that a cash-method taxpayer includes staking rewards in gross income when the taxpayer gains dominion and control, measured at fair market value at that time.
Revenue Ruling 2019-24 explains that a hard fork alone does not create gross income if no new units are received, while an airdrop following a hard fork can create ordinary income when received. Crypto paid for services is generally income at receipt, and that income value typically becomes the basis that later drives gain or loss on sale, which is another place crypto taxes can surprise people who only track trades.
How Form 1099-DA fits into the workflow
Form 1099-DA is useful as a cross-check, but it can miss basis when assets were deposited from outside the platform. A practical approach is reconciliation: match reported lines to the ledger, then report using the ledger’s basis and lot method while retaining support for differences, which reduces surprises in crypto taxes.
Global tax trends that matter in 2026
The reporting shift is global. The EU’s DAC8 rules enter into force on January 1, 2026 and expand automatic exchange of information to crypto-asset transactions via reporting crypto-asset service providers. The OECD’s CARF framework also pushes jurisdictions toward exchanging information on cross-border crypto-asset activity on timelines that begin for early adopters in 2027. These trends make crypto taxes harder to ignore.
Conclusion
Crypto taxes in 2026 are manageable with a systematic approach: build a complete ledger, classify disposals and income, compute proceeds minus basis, and keep support for transfers and lot selection. The 1099-DA rollout increases visibility of proceeds, while basis still depends on taxpayer records during the transition described in IRS instructions.
FAQs
Can someone owe tax on staking rewards without selling?
Staking rewards are included in gross income when the taxpayer gains dominion and control, so tax can be due even when the tokens are held.
What is new about reporting in 2026?
Form 1099-DA applies to transactions on or after January 1, 2025, and IRS instructions describe a transition where basis reporting is not required for 2025 sales, while 2026 and beyond move toward mandatory basis reporting for covered digital assets.
Glossary of Key Terms
Cost basis: What was paid for an asset, adjusted for certain fees.
Proceeds: What was received on disposal.
Holding period: Time between acquisition and disposal.
Form 1099-DA: Broker form reporting certain digital-asset dispositions.
DAC8: The EU directive expanding automatic exchange of tax information to crypto-asset transactions from January 1, 2026.
CARF: The OECD Crypto-Asset Reporting Framework for automatic exchange of information on crypto-asset transactions.
References
IRS
Taxation and Customs Union
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