Best Crypto Tax Software Solutions: Reviews 2022

How Does Cryptocurrency Tax Work?

Many people don’t know or believe that crypto can be taxed. These belief can be linked to the fact that cryptocurrency is a new technology and is yet to be widely accepted.

When crypto is sold at a profit just like every capital assets, you owe crypto tax. In the eyes of the Internal Revenue Service (IRS), cryptocurrency is like every other capital asset, just like your stocks and real estates.

Short-Term Capital Gains And Losses

How much you pay in taxes for cryptocurrency assets are determined by how long you have owned the assets before the profit sell. When you have owned them for a short term, that is less than 12 months, the profits are taxed based on short term capital gain’s rates, that is the same as your income tax rates.

When you have have sold the asset at a price lower than it was purchase. It is called short-term capital loss. This is subject to the same tax rates that are paid on ordinary income, like salaries and wages.

Short-Term Crypto Tax Rates

I have previously stated that the IRS taxes short-term crypto gains as ordinary income. Here are the income tax rates that will apply to gains on crypto you held for 365 days or less in 2022:

Tax Rate Single Married Filing Jointly Head Of Household
10% $0-$10,275 $0-$20,550 $0-$14,650
12% $10,276-$41,775 $20,551-$83,550 $14,651-$55,900
22% $41,776-$89,075 $83,551-$178,150 $55,901-$89,050
24% $89,076-$170,050 $178,151-$340,100 $89,051-$170,050
32% $170,051-$215,950 $340,101-$431,900 $170,051-$215,950
35% $215,951-$539,900 $431,901-$647,850 $215,951-$539,900
37% >$539,900 >$647,850 >$539,900

Data Source: IRS

Long-Term Capital Gains And Losses

In the other hand when you have owned the asset for 12 months or more before selling, it qualifies for long-term capital gains and losses taxes.

When you are paying for a long-term capital gains and losses, you pay less than what you would have possibly paid for a short-term capital gains and losses tax.

Long-Term Crypto Tax Rates

Here is the cryptocurrency tax rates for long-term in 2022. This rates are effective at the filing of 2022 tax return next year. This data is from IRS.

Tax Rate Single Married Filing Jointly Head Of Household
0% $0-$41,675 $0-$83,350 $0-$55,800
15% $40,676-$459,750 $83,351-$517,200 $55,801-$488,500
20% >$459,750 >$517,200 >$488,500

Data Source: IRS

What To Look For In A Crypto Tax Calculator Software

I know the shock the mention of crypto tax calculation and sorting can send down the spine. This process can be complex and tiring.

From keeping track of your transactions to figuring out the applicable tax rates and calculating the tax on every transaction. This is where a crypto tax software comes to rescue.

With the steady growth that have been seen in the cryptocurrency industry and the large inflow of new users, traders and the adaptation by different government, society and organizations, the need for tax software has been on the increase.

When trying to choose a tax software for personal or cooperate use, there are basic features that should be looked out for.

Below are the 5 features to look for.

Flexibility

If you are a heavy user and a big fan of smooth user experience, having to add cryptocurrencies manually or finding yourself in a situation where the software you have chosen doesn’t integrate with the popular cryptocurrencies that you deal with.

Flexibility is essential, the tax software has to support at least the popular cryptocurrencies, that way you won’t have to shuttle between software to sold your needs.

Automated Data Input

What is the use for a software if you still have to do everything manually? Like the input of dates, transaction time, price of the crypto at the time of transaction, the duration of time the crypto was with you.

Doing all these manually is not only time consuming but can be ambiguous task for a big trader who makes a lot of transactions daily. Absolutely that defeats the primary idea of a software.

You need to make sure that your chosen software has some level of data input automation. A software that integrated with wallets and that can input data from the wallets any time a transaction is made.

Reliability

You don’t want to use a software that will be sane today and tomorrow is acting all weird. Mistakes are not tolerated while calculating your taxes and any mistake can result to heavy penalties.

In case the IRS notices any discrepancies in the reports you submit, you could even face taxes charges like evasion charges and I know that you won’t want to find yourself in that kind of situation.

Choosing a reliable tax software is very important. You should check out the users experience reviews online or ask users directly if possible. This will help you understand how reliable the software is and if it is something you want to invest in.

Accurate Ready-To-Use Paperwork

Life for a trader is simplified when pre-filled forms are provided. Therefore, most softwares provide users with pre-filled paperwork that the user can easily download and file.

While pre-filled forms are helpful, accuracy is important. Make sure that the calculations from the software is 100% accurate before you fully rely on the forms that it provides.

A major attribute of a good tax software provides well detailed paperwork that comes with gains and losses, audit track, etc.

Price

Your money is involved here and I think you should pay keen attention to the cost. Different software charge differently, some charge based on factors like the number of transactions you make, the range of integrations, bandwidth, etc.

It is not advisable to pay a lot for less but if the premium plan of a software would offer a better service and make things a lot easier, it is smart to go for it.

What Is The Best Cryptocurrency Tax Calculator?

This question is why this list was made. I have reviewed these software staring with the one that ticked most of my boxes. They are number 1 – 10, with 1 being the highest and 10 the least.

Koinly

Koinly is not only the most known crypto tax calculation software but also a robust tax tool. Not only does Koinly pride in accurate report provision, it also have great features that allows you to manage all your crypto holdings in one place.

Koinly is also a fast-crypto tax calculation software. It can also report a missing transaction and able to delete duplicate entries.

Key Features

  • Connects with 353 crypto exchanges, 74 wallets, and 14 blockchain addresses.
  • Creates the appropriate crypto tax reports and also produce the required crypto tax reports for both self-filing and working with an accountant.
  • Downloadable tax reports
  • Accurate tax reports.
  • Double-entry ledger system that keeps track of every transaction made to make error tracking and debugging in the future easy.

Pricing

Koinly is a freemium software. It has a free plan and paid plans.

  • Free plan : Offers up to 10,000 free transactions, portfolio tracking, capital gain review.
  • Newbie plan: $49 per tax year
  • Holder plan: $99 per tax year
  • Trader plan: $179 per tax year

Free Trial: Yes

Coinledger

Formerly cointrader. Coinledger is a product of Kansas City based company also known as CoinLedger. Founded by David Kemmerer, Lucas Wyland, and Mitchell Cookson in 2018 exclusively for the United States crypto users and traders but later it started expanding and now it is accommodating the world. You can use coinledger anywhere you are in the world.

Coinledger has been able to win over 100,000 loyal customers who trust their service. It supports over 2,500 cryptocurrencies. Coinledger automatically keeps track of your portfolio, calculates them and converts them into tax reports which can be submitted to Internal Revenue Service (IRS) saving you money and time.

Key Features

  • Instant tax report provision through instant tax form and allows you to download the completed tax forms.
  • Free 14-day trial where you can test out the software.
  • Easy import of data from different cryptocurrency platforms.
  • Works with TurboTax and TaxDirect, and supports over 2,500 cryptocurrencies.

Pricing

Coinledger doesn’t have a free plan but it does provide free trial, which is fair and provides the customer enough time to make an informed decision.

  • Hobbyist: $49
  • Day Trader: $99
  • High Volume: $199
  • Unlimited: $299

Free Trial: Yes (14 days)

Tokentax

TokenTax is another great crypto tax software you can entrust with handling your taxes. Tokentax has experts with in-depth knowledge and years of experience in Defi, Nft, crypto industry.

Tokentax is more than just a crypto tax calculator software. It’s also a full-fledged crypto tax accounting firm and this makes its services more reliable, accurate and comprehensive.

Tokentax provides tax-loss harvesting service and offers margin trading support. The software makes tax reporting easy and simple through its automation feature.

Key Features

  • Tokentax gets rid of manual data entry using its automated wallet and syncing with exchange like coinbase, Binance, and BitMEX with a single click.
  • Real time tax liability tracking.
  • Audit assistance, automatic form fill out using TurboTax.
  • Experts assistance. The Tokentax experts can assist you if you have complex needs like a higher number of transactions, missing data.
  • Tax loss harvesting

Pricing

Unfortunately, Tokentax doesn’t offer a free trial or free plan. They have basic, premium, pro and VIP plan.

  • Basic: $65 every tax year
  • Premium: $199 every tax year
  • Pro: $799 every tax year
  • VIP: $2,500 per tax year

Free Trial: No

Cointracking

From one dashboard Cointracking gives your the ability to track your profit and looses. From the same dashboard you can discover your unrealized and realized gains.

Cointracking has 930K+ active users. It offers you the details of market trends for over 12,033 coins and it also comes with an automation features for importing your crypto transactions.

With Cointracking, you have access to 13 tax methods, like the FIFO, LIFO, HIFO, and LOFO methods and reports for 100+ countries. You can pay your subscriptions through BTC coins.

Key Features

  • Cointracking allows you to share your data with crypto tax advisors.
  • Provides you tools to study the trends in coins for trading.
  • Cointracking FAQ provides you with answers and they equally offer video tutorials.
  • The application is not only for individual traders. They service is also available for companies.
  • It supports importing of data from 110+ exchanges.

Pricing

Cointracking has a free trial and also have a free plan.

  • Free: $0
  • Pro: $10.99 per month
  • Expert: $16.99 per month
  • Unlimited: $54.99 per month
  • Corporate: Contact them for prices.

Free Trial: Yes (7 Days)

Taxbit

Taxbit is another big player in the crypto tax software market. Founded by CPAs and tax attorneys, so you are assured of best services and accurate reports from Taxbit. It also holds SOC 2 certificate which guarantees 100% data safety.

Taxbit API integrates with 500+ crypto exchanges, wallets, and DeFi platforms without issues. It automatically sync your data from the exchanges and then generate tax reports.

Taxbit is tailored to the crypto demands of the taxpayers in United States with its native support but it claims to serve anyone from anywhere in the world that has similar regimes with that of United States.

Key Features

  • Trusted by industry’s most reliable exchanges. This shows the how reliable its reports are.
  • Most exchanges are compatible with Taxbit API. This offers seamless usage across different exchanges.
  • Holds SO2 certificate from independent auditors, showing safety of data.
  • Tax loss harvesting and portfolio performance analysis features.
  • Taxbit doesn’t use bots, every process is executed by a real expert with experience.

Pricing

Taxbit does offer free trial and it comes with a free plan, which covers unlimited transactions and offers enough features to get your taxes done.

  • Free: $0
  • Basic: $50 per year
  • Plus: $175 per year
  • Pro: $500 per year

Free Trial: Yes

Zenledger

This is another great software that caters for your cryptocurrency tax needs. If you need a software that will keep an eye on your crypto activities. A software that integrates with over 400 Exchanges, over 30 De-Fi protocols and over 50,000 satisfied users, then Zenledger isn’t below the belt.

Zenledger covers all the forms you will encounter. It is important to highlight the fact that it is compatible with LIFO, HIFO & FIFO reporting methods. So, you are completely covered.

Zenledger is highly regarded for its simplicity, fastness and being user-friendly. It has a great customer support department filled with experts and are ready to assist you via chat, email, and phone calls, 7 days for the week.

Key Features

  • Presents transactions history in a spreadsheet. This helps you to keep track of your multiple transactions. It also calculates your profits and losses using your transactions history.
  • When it comes to security of data, Zenledger uses two-factor authentication for every user.
  • Offers professional tax suite, which empowers professionals looking to render tax services to their clients.
  • Zenledger allows you to report number of crypto income, like mining, DeFi, NFTs, donations staking.
  • Supports integration with over 400 exchanges through an API.

Pricing

Zenledger offers a free plan which allows less than 25 crypto transactions.

  • Free: $0 per year
  • Starter: $49 per year
  • Premium: $149 per year
  • Executive: $399 per year

Free Trial: Yes

Accounting.com

From supporting over 300 exchanges and over 7,500 currencies to being user-friendly, Accounting is a tax software that cannot be ignored.

Based in Switzerland, Accounting provides you with the tools and support to enable you keep track of your crypto transactions and to be able to submit your crypto taxes by yourself.

Through their CPA expert and crypto advisers, they guide you through filing of your taxes to avoid making serious tax mistakes and in return you save more money. You also get IRS compliant cryptocurrency tax calculator along with other top-notch crypto tax tracking tools.

Key Features

  • Provides country based tax calculator for Switzerland, the UK, Australia, Austria, Germany based users in agreement with the countries’ regulations.
  • Tax-loss harvesting and a downloadable tax reports.
  • All plans of Accointing.com give you access to a crypto tracking dashboard from there you can monitor your portfolio using its crypto tracker.
  • Accounting.com offers simple and easy to comprehend crypto tax reports.
  • Android and IOS applications.

Pricing

Accounting.com offers a free plan. This plan can handle 25 tax reports and for most beginners, this would be a good starting point.

  • Free Tax: $0
  • Hobbyist: $79
  • Trader: $199
  • Pro: $299

Free Trial: Yes

Cointracker

Cointracker is a beautiful tax software which give you a great visibility into your portfolio. It shows you real-time changes in your investments market values. This helps you to make an informed decision because they are shown as they happen.

This beautiful tax software also comes with a free plan that can handle up to 25 transactions. It currently supports over 300 exchanges and over 8000 cryptocurrencies.

With Cointracker you can share your tax reports with professionals. It currently serves over 500,000 customers.

Key Features

  • Integrates with TurboTax and TaxAct.
  • Supports over 300 exchanges and over 8000 cryptocurrencies.
  • Has a mobile app that is well rated both on Google Play Store and Apple Store.
  • Offers a personalized CPA when you are subscribed to the unlimited plan.
  • You can easily find a specific transaction using the calendar format for transaction review.

Pricing

Cointracker offers a free plan and a free trial for the paid plan.

  • Free: $0
  • Hobbyist: Starts at $59
  • Premium: Starts at $199
  • Unlimited: Priced individually

Free Trial: Yes

Cryptotaxcalculator

Accuracy is the word. CryptoTaxCalculator does a great job at calculating your crypto tax, it also integrates effortless with most cryptocurrency exchanges out there.

It sync with the exchanges and gather your transactions data, classifying transaction history, and processing the data to offer a well detailed calculations.

This is a robust software that also recognizes Defi staking rewards, NFT, Airdrops, ICO participation and even mining, there presenting you a clean outline of your gains and losses.

CryptoTaxCalculator doesn’t only support US, it also supports many countries like the UK, Japan, Portugal, Greece and many more and it promises more addition in the future.

Key Features

  • Supports data upload through API keys and CVS uploads.
  • Offers 30-day free trial
  • Supports over 20 countries and over 400 platforms.
  • You can import data, calculate taxes, and review transactions with its free trial.
  • You can effortlessly import the generated data into your tax software or forward it to your accountant.

Pricing

Cryptotaxcalculator doesn’t have a free plan but it has a 30-day free trial. All the features work in during the free trial period.

  • Rookie: $49 per tax year
  • Hobbyist: $99 per tax year
  • Investor: $189 per tax year
  • Trader: $299 per tax year

Free Trial: Yes

Bear.tax

An excellent software for figuring out your cryptocurrency taxes. It is equipped with the need features for a smooth experience. From its ability to import transactions data from all the supported exchanges, to automatically computing them into a report that you can send to your CPA or your tax software.

This software has one of the most accurate historical data feature. It also intelligently identify your taxable and non-taxable transactions.

Bear.tax is a great software not only to the professional traders but to accountants that wants to offer more excellent and efficient service to their clients.

Key Features

  • You can import from any crypto exchange using API keys or CSV uploads.
  • Bear.tax enables you to classify crypto income from categories like mining, staking, gifts etc.
  • Perfect for individuals and accountants rendering professional services.
  • Automatically computes documents and turn them into reports that you can send to your CPA or your tax software.
  • 24/7 customer support by experts.

Pricing

Bear.tax doesn’t have a free plan but it offers a free trial.

  • Basic: $10 per tax year
  • Intermediate: $45 per tax year
  • Expert: $85 per tax year
  • Professional: $200 per tax year

Free Trial: Yes

List Of Countries That Tax Crypto

If you live in one of these countries. You are bound to pay taxes on your crypto assets. Terms and Conditions apply to some of them.

  • United States
  • United Kingdom
  • Netherlands
  • Italy
  • Australia
  • Canada
  • Germany
  • Japan
  • India
  • Spain
  • Sweden
  • France
  • Ireland
  • South Africa
  • Switzerland

(Discover: How Cryptocurrency assets are taxed in these countries)

Countries That Don’t Tax Crypto

In these countries you don’t have to worry about taxes in your cryptocurrency assets. Terms and Conditions apply to some of them.

  • Belarus
  • Cayman Islands
  • El Salvador
  • Germany
  • Malaysia
  • Malta
  • Portugal
  • Puerto Rico
  • Singapore
  • Switzerland

(Discover the terms and conditions of crypto tax free countries).

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