Best Crypto Tax Software in 2023

Using a comprehensive crypto tax tool can save you time, money, and headaches by automating the tax reporting process and providing accurate calculations. But with so many options on the market, how do you choose the right one for you? 

In this article, we’ll walk you through everything you need to know about crypto tax software and help you pick the best solution for your needs.

What is Crypto Tax Software?

Cryptocurrency tax software is a tool that helps crypto investors and traders calculate and report their taxes. With the rise of cryptocurrencies in recent years, tax authorities worldwide have started paying closer attention to the tax implications of buying, selling, and trading digital assets.

Such software solutions often include a portfolio tracking functionality to automatically import data from crypto exchanges, wallets, and other sources. Users save time and effort otherwise spent on manually collecting their transaction history. This integration also allows the software to support a wide range of cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Litecoin, as well as lesser-known altcoins and tokens. 

Additionally, the best crypto tax software solutions offer real-time market data and portfolio analysis, which helps investors and traders make more informed decisions about their cryptocurrency holdings.

Apart from portfolio tracking features, crypto tax software provides users with tools for cost-basis tracking, transaction classifications, and report generation. These features make it easier to calculate your gains and losses on cryptocurrency transactions and generate accurate crypto tax reports.

If you buy, sell, or trade cryptocurrencies and want to stay compliant with tax regulations, using a crypto tax tool is essential. 

Accointing stands out as a leader among the various options available due to its comprehensive features, user-friendly interface, and reliable customer support.

Why Use Crypto Tax Software?

Using a tax calculator can save you time and reduce the stress of calculating your taxes by automatically importing data from your crypto wallets, exchanges and other sources. These tools support a wide range of cryptocurrencies and often provide real-time market data and portfolio analysis to help you make more informed decisions about your cryptocurrency holdings.

In addition, by using crypto tax software, you can ensure that you accurately report your cryptocurrency transactions and pay the right amount of taxes. A good crypto tax calculator will help you stay compliant with tax regulations and save you money on taxes via tax loss harvesting.

Crypto Tax Calculator Benefits

Do you understand the perks of crypto tax software but still have doubts as to whether you need it or not? . Here’s a list of several compelling reasons why you should opt for a crypto tax calculator.

Accuracy

One of the most compelling reasons to use crypto tax software is to improve accuracy in tax reporting. Crypto transactions can be complex and challenging to track, and manually calculating cryptocurrency taxes is often prone to errors and omissions. 

A quality crypto tax tool ensures that all relevant information is accounted for, including gains and losses from trades, fees paid to exchanges, and other taxable events. This way you’ll avoid under-reporting or over-reporting your taxes, which reduces the risk of audits or penalties from tax authorities.

Time savings

Manual calculation of cryptocurrency taxes can be time-consuming and tedious, especially for traders who engage in frequent transactions across multiple exchanges. Crypto tax software automates collecting and categorizing transaction data from exchanges, wallets, and other sources. This saves users significant time and effort, allowing them to focus on their trading strategies and other more exciting activities.

Compliance

Tax authorities worldwide are already paying close attention to cryptocurrency tax reporting. Failing to accurately report crypto gains or losses can get you in trouble. costly penalties or fines. By using crypto tax software, investors and traders can ensure that they comply with tax regulations and avoid the risk of noncompliance. Additionally, many crypto tax software solutions provide tax reports that comply with specific countries’ tax laws, making it easy for users to file their taxes correctly.

Portfolio Management

Many crypto tax software solutions offer powerful portfolio management tools to help investors and traders make more informed decisions about their cryptocurrency holdings. These tools can provide real-time market data, performance tracking, and cost basis tracking. By having a comprehensive view of their portfolio, users can better understand their investment performance, identify areas for improvement, and make more strategic trading decisions.

Security

By storing users’ data in secure, encrypted servers, crypto tax software can help protect users’ privacy and prevent unauthorized access to their sensitive financial information. This is especially important in an industry that has experienced numerous hacks and security breaches in recent years. By using a trusted cryptocurrency tax calculator, users can have peace of mind knowing that their data is secure.

What to Look out for When Using Crypto Tax Software?

Different crypto tax tools pack different features at varying levels of quality. How to choose the best crypto tax tool out there? When selecting a crypto tax software to buy, it’s essential to consider several factors to ensure it meets your specific needs and helps you comply with tax regulations. Here are the key features to look out for in a crypto tax tool.

Supported Countries

Make sure that the crypto tax software you go for supports tax reports for your country of residence. Some solutions have limited functionality in specific regions and may not cover  the jurisdiction where you’re reporting.

A quality crypto tax solution allows you to export files to the tax filing platform of your choice, such as TurboTax or TokenTax for the US. In addition, your tax tool should support different accounting methods like FIFO (First In First Out) and LIFO (Last in First Out). 

Supported Integrations

Look for a software solution that can integrate with your preferred exchanges, wallets, and other data sources to ensure that all of your transactions are tracked. Some tools may only support the bigger exchanges such as Binance and Coinbase, so it’s important you check if they have the integrations you need before deciding to purchase. You must have a complete view of your crypto portfolio for tax reporting purposes.

DeFi Support

If you trade in decentralized finance (DeFi), ensure that the crypto tax software can accurately track your transactions and generate reports for these activities. Check whether the software supports more advanced DeFi transactions, such as staking or NFT trading, as not all solutions offer these features.

Customer Service

Good customer support is essential when using any software, including crypto tax software. You don’t want to find yourself stressing over how to use your crypto tax app before the tax filing deadline. Choose a solution that provides timely and helpful customer support, such as through email or live chat, rather than just public forums or community chat.

Number of Transactions

Most crypto tax software solutions limit the number of transactions you can import, which can be an issue if you have a high volume of trades. Consider your trading activity and choose a solution that can accommodate your needs.

Cost

The cost of crypto tax software can vary significantly. Consider the software’s features, accuracy, and support when assessing value for money. Some solutions offer free tiers, while others have subscription-based pricing, so choose one that meets your budget.

Considering these factors, you can select a crypto tax software solution that meets your needs and helps you comply with tax regulations. Remember that different solutions may prioritize various features, so choosing the best fit your specific requirements is essential.

Top 6 Crypto Tax Software Compared

Now that you know what to look out for when choosing a crypto tax software solution, let’s compare some of the top options on the market. Below, you’ll find a detailed comparison of the key features, pricing, and other essential factors to help you make an informed decision.

The comparison table above provides a quick overview of some of the more popular crypto tax software options available today, and how they compare across a number of key features such as supported countries, integrations, customer service, transaction limits, and cost. Now, let’s dive deeper into the specific features and benefits of Accointing and its competitors.

Accointing by Glassnode

If you’re looking for a reliable and comprehensive crypto tax software solution, Accointing is a popular choice. With support for 6 countries and over 400 integrations, it’s a versatile option that can handle a range of cryptocurrency transactions. Accointing’s inclusion of DeFi and NFT support sets it apart from some other competitors, and its pricing includes customer service to help ensure a smooth tax season.

Accointing is a top choice among crypto tax software options due to its robust functionality, including cost-basis tracking, transaction classifications, and report generation, as well as its ease of use and outstanding customer support. Additionally, Accointing’s DeFi and NFT support is included in all plans, and their customer service is available for all users.

Pros:

– Supports DeFi and NFT transactions

– Customer service is included in the pricing

– Easy-to-use interface

Cons:

– Cant generate reports that include more than 50,000 transactions

CoinLedger

CoinLedger is a solid choice for those looking for a crypto tax software solution that supports a wide range of countries and integrations. With support for 16 countries and over 400 integrations, CoinLedger is well-suited to handling diverse cryptocurrency portfolios. CoinLedger also includes customer service in its pricing, making it a user-friendly option.

Pros

– Supports DeFi and NFT transactions

– Customer service is included in the pricing

Cons

– Pricing is not transparent as it requires in-app purchases to increase transaction limit

– Available plans do not include very many transactions

CoinTracker

While CoinTracker may support fewer countries than some competitors, its robust support for over 500 integrations makes it a strong option for many cryptocurrency users. Additionally, CoinTracker includes DeFi and NFT support, ensuring it can handle even complex transactions. While some of its pricing plans limit access to customer service, it may still be a worthwhile choice for those seeking a feature-rich crypto tax software solution.

Pros:

– Supports DeFi and NFT transactions

Cons:

– Plans are more expensive than most competitors

– Customer service only included in more expensive plans

CoinTracking

CoinTracking is a crypto tax software solution that supports seven countries and over 100 integrations. It offers support for DeFi and NFT transactions, and customer service is included with certain plans. With CoinTracking, you can track an unlimited number of transactions and generate reports that can help you file your taxes accurately. CoinTracking’s pricing ranges from free to 9.99 per month, depending on the plan you choose.

Pros:

– Supports DeFi and NFT transactions

– Offers support for unlimited transactions

Cons:

– Poor user interface

– Plans are more expensive than most competitors

– Customer service is only available to paying users

Koinly

Koinly’s broad support for 8 countries and over 500 integrations makes it a versatile option for many cryptocurrency users. Its inclusion of DeFi and NFT support, along with customer service in its pricing, add to its appeal. Additionally, Koinly’s pricing plans offer generous transaction limits, making it a solid option for frequent traders.

Pros:

– Supports DeFi and NFT transactions

– Customer service is included in the pricing

Cons:

– Higher amounts of vendor lock-in by limiting data exports

ZenLedger

While ZenLedger may be limited to the United States, its broad support for over 500 integrations makes it a strong choice for many U.S.-based cryptocurrency users. Its inclusion of DeFi and NFT support, along with a range of pricing plans to suit different users, make it a versatile option. However, it’s important to note that customer service is available for an additional cost, so users should factor that into their decision-making.

Pros:

– Offers support for unlimited transactions

Cons:

– Only provides tax reports for users in the United States

– Only supports DeFi and NFT transactions on higher tier plans

– Customer service is only provided at an additional hourly cost

Takeaways

Don’t let tax season stress you out! With the right crypto tax software, you can simplify your tax preparation and reporting process and ensure compliance with tax regulations. We’ve covered everything you need to know about selecting the right crypto tax software, including what to look for and how different solutions compare. Now it’s time to take action and sign up for a free trial with the solution that meets your needs. By doing so, you can take control of your crypto taxes and focus on what really matters – growing your crypto portfolio.