How crypto capital-gains tax actually works
In most tax systems, crypto is treated as property, so every time you close a position for a profit you create a taxable event. The single biggest lever on what you owe is the holding period. In the US, a coin held one year or less is a short-term gain taxed at your ordinary income rate — the highest rate you pay — while a coin held over a year gets the lower long-term rates of 0%, 15% or 20%. Active futures and day trading is almost entirely short-term, which is why your after-tax edge is smaller than your raw P&L suggests. Canada taxes 50% of a capital gain at your marginal rate; the UK gives a small annual exempt amount, then taxes the rest at its capital-gains rates. This calculator applies representative 2026 figures to give you a planning estimate — the real number depends on your full return, your state or province, and rules this tool deliberately simplifies. When you are ready to file, use official software or a professional. If you bought the same coin at several prices, work out which lots a sale draws from — and your short-term vs long-term split — with the cost basis calculator (FIFO/LIFO/HIFO) first, then bring those numbers here. To keep the records you'll need, log every closed trade in the free trading journal, and if you want to test a strategy's after-tax profit before risking money, run it in paper trading first — paper trades owe nothing, so it's a free way to see how much of the profit tax would take.