Chapter 4

2020 IRS Tax Rates For Cryptocurrencies

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)

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)