Like any other property, the tax rate on cryptocurrencies depends on the holding period, as mentioned earlier. For holding periods equal to or under a year, this tax rate and calculation are the same as ordinary income, and the tax rates are summarized in the table below.


  

Table 1. Short Term Holdings Tax Brackets (<1 year)

Tax rate

Single filers

Married filing jointly*

Married filing separately

Head of household

10%

$0 – $9,700

$0 – $19,400

$0 – $9,700

$0 – $13,850

12%

$9,701 – $39,475

$19,401 – $78,950

$9,701 – $39,475

$13,851 – $52,850

22%

$39,476 – $84,200

$78,951 – $168,400

$39,476 – $84,200

$52,851 – $84,200

24%

$84,201 – $160,725

$168,401 – $321,450

$84,201 – $160,725

$84,201 – $160,700

32%

$160,726 – $204,100

$321,451 – $408,200

$160,726 – $204,100

$160,701 – $204,100

35%

$204,101 – $510,300

$408,201 – $612,350

$204,101 – $306,750

$204,101 – $510,300

37%

$510,301 and above

$612,351 and above

$306,751 and above

$510,301 and above


If the cryptocurrency is held for more than one year, then it is termed as long-term capital gains tax, and the applicable tax rate follows:


Table 2. Long Terms Holdings Tax Brackets (>1 year)

Tax rate

Single filers

Married filing jointly*

Married filing separately

Head of household

0%

$0 – $39,375

$0 – $78,750

$0 – $39,375

$0 – $52,750

15%

$39,376 – $434,550

$78,751 – $488,850

$39,376 – $434,550

$52,751- $461,700

20%

$434,551 and above

$488,851 and above

$434,551 and above

$461,701 and above