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Bitcoin Tax in the United States (2026)

Capital gains taxResearch in progressLast reviewed 2026-09-06

The full guide for this country is being researched

What is on this page now is verified against the sources listed below: the tax authority, the governing rule and the shape of the regime. Rates, exemptions and the reporting duty land here once our research is reviewed.

For federal income tax purposes, bitcoin is virtual currency treated as property. If you hold bitcoin as a capital asset, selling it, spending it on services or goods, or exchanging it for another cryptocurrency produces a capital gain or loss. State and local tax treatment is outside this record.

Key facts

Regime
Capital gains tax
Tax authority
Internal Revenue Service
Framework
Notice 2014-21, 2014-16 I.R.B. 938
Holding period
Under the IRS virtual-currency FAQ, a holding period of one year or less produces short-term capital gain or loss, while a period of more than one year produces long-term capital gain or loss.
Reporting duty
You must report income, gain, or loss from all taxable transactions involving virtual currency on your federal income tax return for the taxable year of the transaction, regardless of the amount and regardless of whether you receive a payee statement or information return. Most sales and other capital transactions are calculated on Form 8949, Sales and Other Dispositions of Capital Assets, and then summarized on Form 1040, Schedule D, Capital Gains and Losses.

What is not taxed

  • A transfer of virtual currency from a wallet, address, or account belonging to you to another wallet, address, or account that also belongs to you is a non-taxable event, even if you receive an information return from an exchange or platform as a result of the transfer.

Frequently asked questions

Is selling bitcoin taxable in the United States?

Yes. If you sell virtual currency held as a capital asset, you must recognize capital gain or loss, subject to limits on the deductibility of capital losses.

Is spending bitcoin on goods taxable?

Yes. The IRS states that exchanging virtual currency held as a capital asset for other property, including for goods, produces a capital gain or loss.

Is a bitcoin-to-bitcoin exchange taxable?

Yes. Exchanging virtual currency held as a capital asset for another virtual currency or other property produces capital gain or loss.

Are transfers between my own wallets taxable?

No. Moving virtual currency between wallets, addresses, or accounts that all belong to you is a non-taxable event.

Do I report bitcoin sales on Form 8949?

Yes. The IRS says most capital sales and other transactions are reported on Form 8949 and then summarized on Form 1040, Schedule D.

Sources

The authority itself: Internal Revenue Service. Rules change with each budget; check the figure that matters to you there before you file.

Buying is the other question: how to buy bitcoin in United States covers exchanges, payment methods and legality for residents.

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