Filing Cryptocurrency and Bitcoin taxes can be a very challenging and time-consuming task.
This is exactly where crypto tax calculators step in.
Cryptocurrency or Bitcoin tax software enables you to easily find out how much in taxes you need to pay by connecting your crypto exchange accounts to the tool.
Spreadsheets and the risk of calculating your crypto taxes incorrectly are a thing of the past.
In this guide, we analyze the best crypto and bitcoin tax calculators to help you find the tool that best suits your needs.
Best Bitcoin Tax Calculators:
Best cryptocurrency tax calculators compared
|Tax tool||Price||Key Feature||Calculate taxes|
|CoinTracking||$123 per year||12+ tax methods supported|
|CoinTracker||$49 per year||Simple user interface|
|Zenledger||$149 per year||Customized tax solutions|
|Bitcoin Tax||$29 per year||Turbotax integration|
|Bear Tax||$29 per year||Detailed Gain-Loss display|
|CryptoTrader||$49 per year||Supports crypto income tax calculation|
|Token Tax||$65 per year||40+ exchanges integrated|
CoinTracking is a comprehensive personal cryptocurrency portfolio monitor that lets its users generate tax reports, track profit-loss margins and monitor a wide range of cryptocurrency assets in real time.
- Being developed on since 2013.
- Wide range of supports assets and exchanges
- Free demo account
- Very limited free features
- Does not track gains from P2P lending platforms
- No telephone support
Feature-wise, CoinTracking supports over 70 exchanges with both automatic API imports and manual CSV imports.
CoinTracking also allows customers to set their own country-specific tax parameters and is compatible with 12 different tax methods, including FIFA, LIFO and more.
CoinTracking recognizes a wide range of tax events, including purchases, sales, income from mining, gifts, airdrops, forked coins, and is one of the few platforms that can account for donations, theft and lost coins.
CoinTracking has a customer ticket-based customer support system, as well as an extensive FAQ to answer general queries and educate its customers on crypto taxes.
Pricing is divided into three tiers; Free, Pro and Unlimited. Each tier has 1 year, 2 year and Lifetime licenses. These range from as cheap as $116 all the way to $1,872 for a lifetime Unlimited license. CoinTrading also offers a 5% discount for paying in BTC.
CoinTracker is an intuitive cryptocurrency portfolio manager that can monitor portfolio gains, and losses, and automatically complete the required forms needed for your tax return.
- Excellent, simple user interface
- Wide exchange of exchange APIs supported
- Mobile availability
- No support for margin trades or derivatives
- No multi-year plans available
- Limited customer support
With over 2,500 coins supported, and support for the great majority of countries, including the US, Australia, Canada, United Kingdom, and Germany, CoinTracker is suitable for most cryptocurrency investors.
CoinTracker supports a robust array of accounting methods such as FIFO, LIFO, HIFO, ACB, and Share Pooling and is capable of generating capital gains reports, IRS form 8949 and a variety of other tax forms for its international clients.
In addition to tracking cryptocurrency sales, trades, purchases and expenses, CoinTracker also enables its users to account for hard forks and airdrops, providing comprehensive coverage of taxable events.
Anyone can sign up and track their crypto portfolio with CoinTracker for free, however, tax calculation features are reserved for paying customers. In terms of pricing, CoinTracker charge between $49 and $999 per year, with the lowest tier handling 100 transactions or less.
With Zenledger anyone can upload their transactions to the platform and receive a free estimate of how much taxes they currently owe. Users are then able to download auto-completed tax forms or use the Grand Unified Accounting feature at a cost.
- Well organized support system
- Customized solutions
- Try before you buy
- New to the market, established in 2017
- No margin, CFD or futures tracking
- Expensive starting price
One of the unique features makes Zenledger stand out is its CPA suite, where it allows CPA professionals to easily create tax assessments and complete tax forms for their clients.
In addition to supporting all the major exchanges and globally retrieving transactions, Zenledger also provides tools for line-by-line accounting, tax loss harvesting and wash sales, and is compatible with both FIFO and LIFO designations.
Zenledger maintains a knowledge library for its customers and also features a live customer support chat desk powered by Intercom.
When it comes to pricing, Zenledger separates its plans across four subscription levels, based on the number of transactions and portfolio value to be analyzed.
The cheapest plan starts at $149, supporting up to 500 transactions and $50k portfolio value, while their highest plan comes in at $999, with absolutely no limits. Zenledger also provides additional consultations at a flat rate of $100 per hour.
Often considered the leader in the crypto-tax industry, Bitcoin.tax was the first ever crypto tax management platform, being launched in 2014. Bitcoin.tax allows anyone to import and calculate taxes on capital gains, income from mining, cryptocurrency payments, and trading.
- Extensive knowledge base with guides
- Several different tax methods supported, including FIFO and average costing
- TaxAct, TurboTax and Visor integration
- No support for margin trades
- Support response times can be long
- Outdated user interface
Trading, buying or selling cryptocurrencies, buying items, and paying for services rendered with cryptocurrencies are just a few of the taxable events that Bitcoin.tax can handle.
Bitcoin.tax has a straightforward, basic user interface, which does feel dated, but gets the job done. They have inbuilt support for over 20 exchanges and support manual CSV imports from other exchanges if necessary.
For customer support, Bitcoin.tax has an extensive knowledge base that covers everything from the most basic of queries to advanced guides on crypto tax-related issues. However, they process customer queries directly through emails despite Zendesk integration.
They support tax assessments and relevant form generation for countries like the US, Japan, Canada, and Australia, but can be used practically anywhere, since tax assessments can be converted to any local currency.
For pricing, services are charged at between $29.95 and $49.95 for individuals, whereas traders are charged between $99 and $399 per tax year.
Bear Tax is one of the least expensive of all crypto tax platforms and is primarily targeted to individual traders, as well as CPAs and enterprise level accounting firms.
- On-demand integration with any platform of choice
- Best suited for CPAs and firms
- Intuitive interface
- Not suitable complex portfolios
- Subpar support
- Limited taxation methods
While it does not provide the ability to monitor a portfolio, it does feature seamless integration with many major exchanges, connecting via API to extract the trade history used for tax calculations.
When it comes to customer support, Bear.tax shows how it manages to stay so inexpensive — relying on email support and a barebones FAQ to address customer queries.
Beyond this, the platform does offer live chat support powered by Drift, but this is primarily used for user onboarding.
For pricing, Bear.tax segregates its subscription plans based on the number of transactions per tax year. Subscription plan charges are split into four levels; $0.99, $29.99, $59.99, and $199.99 where between 20, up to an unlimited number of transactions can be assessed.
Bear.tax is also able to automatically generate documents and offers an on-demand integration service, which sees exchanges use Bear.tax’ services to automatically generate reports for their customers.
Despite being one of the simpler crypto tax calculators available, CryptoTrader.tax doesn’t skimp on the exchange support, featuring support for 16 of the most popular exchanges.
- Excellent low budget option
- Reports generated within 10 minutes
- Limited supported tax methods
- No form filing service
- Limited customer support options
- Less established than other platforms
CryptoTrader.tax offers three different premium service plans starting at $49/year. The cheapest plan will automatically generate your IRS 8949 and Capital Gains report, as well as import up to 100 trades.
For its higher pricing tiers, the only major difference is the number of trades it can generate a report on, with over 2,500 trades being supported with the $199 top tier plan.
CryptoTrader.tax can produce a variety of reports, including an Audit Trail Report, Short & Long Term Gains Report, and auto-filled IRS Form 8949s. CryptoTrader.tax is also compatible with Turbotax, helping you to quickly import and export your tax records between platforms.
According to its customer reviews on ProductHunt, CryptoTrader.tax is widely regarded as a basic solution for filing crypto taxes, with no major complaints being noted for the platform.
Like most other crypto tax calculators, CryptoTrader.tax offer a comprehensive FAQ to help answer any common queries, while live support is on deck to assist with more urgent issues.
Billing itself as the “easiest way to calculate your crypto taxes”, TokenTax has certainly managed to live up to its claims and has even won the 2017 ProductHunt Hackathon thanks to its crypto tax calculator product.
- Comprehensive filing service
- Great customer support
- Worldwide coverage
- Basic plan only supports Binance API
- $1,499 charge for margin trading support
- No free plan
TokenTax boasts support for every country, making it one of the most comprehensive tax calculators on the market.
Beyond this, TokenTax is also one of the few cryptocurrency tax calculators that automatically handles margin trades from platforms such as Poloniex and BitMEX, taking the effort out of what could otherwise be a nightmare to deal with.
Moreover, TokenTax also features an extensive historical pricing database, making it easy to track and record gains/losses from ICO investments, and also features a handy tax liability calculator for mining earnings.
In terms of pricing, TokenTax is reasonably cheap, with its basic plan that covers up to 500 transactions coming in at just $65 per year.
Stepping up to the premium plan, TokenTax includes API support for every major cryptocurrency exchange, handling up to 3,000 transactions for $199/year.
TokenTax also offers filing plans, where they will calculate your taxes, and file up to 10 different tax forms for you, including W2s, 1099s, 1098s, etc, for as little as $499.
This, in combination with its excellent phone-based customer support, make TokenTax an excellent choice for most people.
What is a cryptocurrency tax software?
Whether you are a small time trader or crypto professional, filing taxes on your cryptocurrency earnings (or losses) can be a daunting experience.
Bitcoin tax calculators allow those with exposure to cryptocurrencies such as Bitcoin to easily calculate the tax they may owe on their earnings.
Though cryptocurrency tax regulations are still in the developmental stages, it is widely acknowledged that certain actions involving cryptocurrencies can be considered taxable events.
However, this can vary quite wildly between jurisdictions and can be difficult to track, meaning most people tend to opt for a certified professional account (CPA) to handle it for them.
Instead, new savvy products have been launched to help simplify this process, avoiding expensive CPA costs, and allowing you to handle your taxes without needing to complete a crash course in accounting first.
What features to look for in a cryptocurrency tax software?
As with all things, individual needs vary from person to person, and crypto tax software is no different. With literally dozens of platforms to choose from, it can be difficult to filter out the golden eggs from the plain ones.
With that said, beyond price there are a variety of other key points to consider when selecting a cryptocurrency tax tool, the most important of which are considered below:
Integration with exchanges and wallets
Depending on how extensive your trading history is, one of the major criteria you may need to check when selecting your crypto or Bitcoin tax calculator is its exchange and wallet integrations.
For the most part, crypto tax calculators will only offer compatibility with a selected range of exchanges, which means you may need to shop around until you find one that is compatible with ones you use.
If you are an arbitrage trader, then you will likely be looking for a platform that supports a wide variety of exchange and wallet platforms, whereas casual traders get away with using a basic plan with limited exchange support.
Ability to track multiple tax events
As the number of cryptocurrencies, tokens and other crypto derivatives increases, so to do the number of possible tax events that might need to be included in your tax return.
With that said, crypto tax calculators can vary quite considerably in the variety of tax events they are capable of recognizing and accounting for, with some being more comprehensive than others.
Whether it be margin trading, CFDs, futures, mining gains or otherwise, few cryptocurrency tax calculators will handle them all, so it is wise to look around before settling on the ideal cryptocurrency tax software for you.
Great customer support
Whenever there is significant money involved, such as when doing your taxes, great customer support can be a godsend.
Unfortunately, when it comes to crypto tax calculators, excellent customer support usually comes with a substantial premium.
For the most part, crypto tax calculators will offer general support via a ticket system or e-mail, whereas telephone support or individual guidance from a CPA will come at an additional cost — usually charged hourly.
If you are somebody with a particularly complex portfolio or unique concerns, then great customer support should be close to the top of your priority list.
Needless to say, it is extremely important that the Bitcoin tax tool you use is well-reputed since inaccuracies in your tax report can lead to fines, or potentially worse.
Because of this, it is important to check the trustworthiness of a platform before using it, paying particular attention to user reviews, and the popularity of the tool.
In general, well-established crypto tax calculators are more trustworthy, as few sketchy or underperforming platforms are able to stand the test of time.
Remember, if a platform is suspiciously cheap, then there is usually a good reason for it — don’t be lured in by offers that are too good to be true.
Do I need to pay cryptocurrency taxes as a miner?
Unlike some other types of cryptocurrency gains, income generated from cryptocurrency mining is less controversial when it comes to taxes, with almost all countries agreeing that mining gains are considered taxable income.
For the most part, profits earned from mining are considered self-employed income, with cryptocurrency miners able to deduct operating electricity and other maintenance costs as expenses.
Despite this, exactly when mining becomes taxable varies between countries, with some countries requiring you to report the value of the cryptocurrency at the time of mining, while others only require you to report this after it has been disposed of.
Do I need to pay taxes on cryptocurrency airdrops?
In most jurisdictions, simply receiving an airdrop is not a taxable event, since the great majority of these airdrops have zero value at the time of receipt.
However, should this airdrop develop value, then the current consensus is that there should be a best-effort type approach used to identify and record the value of this airdrop on your tax return, as this can now be considered a type of income.
Some countries consider airdrops to be similar to dividends, being immediately taxable at their market value at the time of filing your tax returns. However, other countries consider airdrops to be a type of capital gains, owed only upon disposal.
Bitcoin tax software alternatives
Unfortunately, outside of using a Bitcoin tax calculator, there are only two main options for handling your taxes — though these may be preferable to certain people under the right conditions.
The first of these alternatives is simply doing your own taxes, typically by noting any taxable events on a spreadsheet, including your entry and exit prices. This option may be feasible for those who perform a few trades or are very meticulous about the records they keep.
Thankfully, there are template spreadsheets available that remove the need to create your own from scratch.
It should be noted that in most countries, converting cryptocurrency to fiat, or using cryptocurrency to purchase something is considered a taxable event.
The second option is to hire an accountant specialized in cryptocurrency taxes. These may be able to better advise you on the specifics of your situation and could be a superior alternative to online cryptocurrency tax calculators — especially if your portfolio is particularly diverse or complex.
Are cryptocurrencies tax-free in some countries?
As it stands, the tax status of Bitcoin and other cryptocurrencies varies quite considerably in most countries.
In general, cryptocurrency earnings are taxable in some form in most countries, though there are several countries which are significantly less stringent on the matter, with some even being considered tax-free.
As it stands, cryptocurrency earnings made from trading and other investments are not taxable in Singapore, whereas businesses that choose to be remunerated in Bitcoin or any other cryptocurrency will be subject to standard tax rates.
Last year, it was declared that buying and selling cryptocurrencies would be completely tax-free, as these cannot be considered capital gains. However, crypto profits derived from non-trading sources may still be taxable.
Panama is one of the few countries to charge its residents 0% tax on all cryptocurrency-related earnings, so long as these earnings were earned outside the country.
In Cyprus, profits made from trading cryptocurrencies, as well as shares and securities is not taxed. Beyond this, there is no guidance relating to profits made from ICOs or mining, these may be taxed in the future.
Belarus is widely considered to be the most attractive country for cryptocurrency traders and investors since everything to do with cryptocurrencies is entirely tax-free. President Alexander Lukashenko declared in late 2017 that this will continue to be the case until at least 2022.
Alexander has worked in community growth for multiple cryptocurrency companies. He is now the Sales and Operations Manager for CoinDiligent. In his free time, he writes articles sharing his industry insights. You can get in touch with Alexander on LinkedIn.