Crypto Airdrop Tax Calculator
Calculate income tax on cryptocurrency airdrops. Estimate tax owed on free tokens received based on fair market value at the time of receipt.
Crypto Tax-Loss Harvesting Calculator
Calculate potential tax savings from harvesting crypto losses. Estimate harvestable losses from underwater positions and the resulting tax savings at your rate.
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Harvestable Loss⧉
$15,000.00
Gains Offset⧉
$8,000.00
Ordinary Income Offset⧉
$3,000.00
Max $3,000/year
Loss Carryforward⧉
$4,000.00
CG Tax Saved⧉
$1,200.00
Income Tax Saved⧉
$720.00
Total Tax Savings⧉
$1,920.00
Sum of all values
Planning notes, formulas, and examples
About the Crypto Tax-Loss Harvesting Calculator
Tax-loss harvesting is a strategy where you sell cryptocurrency positions that have declined in value to realize capital losses. These losses can offset capital gains from other investments, reducing your total tax bill. If your losses exceed your gains, you can deduct up to $3,000 of net capital losses against ordinary income per year, with any remaining losses carried forward to future years.
Unlike stocks, cryptocurrency is not currently subject to the wash sale rule, meaning you can sell a crypto asset at a loss and immediately repurchase the same asset without losing the tax benefit. However, proposed legislation may change this, so stay informed about regulatory developments.
This calculator estimates your total harvestable losses from underwater positions, the tax savings from harvesting, and how much can be used against gains versus ordinary income. Use it to identify optimal times to harvest and estimate your tax benefit. This calculator is for educational purposes only and is not tax or financial advice.
When This Page Helps
Tax-loss harvesting can save hundreds or thousands of dollars in taxes each year. This calculator helps you quantify the exact tax savings before you execute trades. It also shows how harvested losses are applied — first against gains, then up to $3,000 against ordinary income.
How to Use the Inputs
- Enter the total cost basis of your underwater crypto positions.
- Enter the current fair market value of those positions.
- Enter your total realized capital gains for the year.
- Enter your marginal income tax rate.
- Enter your capital gains tax rate.
- Review the harvestable loss, gains offset, and total tax savings.
Formula used
Harvestable Loss = Cost Basis − Current FMV (for positions where FMV < Basis)
Gains Offset = min(Harvestable Loss, Realized Capital Gains)
Remaining Loss = Harvestable Loss − Gains Offset
Ordinary Income Offset = min(Remaining Loss, $3,000)
Tax Savings = (Gains Offset × CG Rate) + (Ordinary Income Offset × Income Tax Rate)
Carryforward = Remaining Loss − Ordinary Income OffsetExample Calculation
Result: $1,920 tax savings from $15,000 harvested loss
Harvestable loss = $50,000 − $35,000 = $15,000. It offsets $8,000 in gains: $8,000 × 15% = $1,200 saved. Remaining $7,000: $3,000 offsets ordinary income at 24% = $720 saved. Total savings = $1,920. $4,000 carries forward.
Tips & Best Practices
- Crypto is currently exempt from the wash sale rule — you can rebuy immediately after selling.
- Harvest losses before year-end to offset current-year gains.
- Even if you have no gains, harvest $3,000 in losses to offset ordinary income.
- Track your cost basis carefully — you can only harvest if your basis exceeds current FMV.
- Consider transaction costs and potential price movement when harvesting.
- Watch for proposed legislation that may apply wash sale rules to crypto.
- Harvesting doesn't mean giving up the position — rebuy after selling to maintain exposure.
How Tax-Loss Harvesting Works
You sell crypto positions that are below your cost basis, realizing a capital loss. This loss offsets realized gains, reducing your tax bill. Because crypto isn't subject to the wash sale rule, you can immediately repurchase the same asset.
Maximizing Tax Savings
Harvest throughout the year, not just at year-end. Market dips present opportunities to lock in losses while maintaining your long-term position. Pair harvesting with your overall portfolio rebalancing strategy.
The $3,000 Ordinary Income Deduction
If your harvested losses exceed your capital gains, you can deduct up to $3,000 against ordinary income each year. At a 24% tax rate, that's a guaranteed $720 annual tax savings. Unused losses carry forward indefinitely.
Sources & Methodology
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Frequently Asked Questions
Tax-loss harvesting is selling crypto at a loss to realize a capital loss for tax purposes. The loss offsets capital gains and up to $3,000 of ordinary income. You can repurchase the same crypto immediately since the wash sale rule doesn't currently apply.
As of 2025, the wash sale rule does not apply to cryptocurrency because it's classified as property, not a security. You can sell at a loss and immediately rebuy without losing the tax benefit. This may change with future legislation.
Harvested losses first offset capital gains dollar-for-dollar with no limit. Any excess losses can offset up to $3,000 of ordinary income per year ($1,500 if married filing separately). Remaining losses carry forward indefinitely.
Monitor your positions throughout the year and harvest when losses are significant enough to provide meaningful tax savings. Year-end is popular, but mid-year harvesting during market dips can also be strategic.
When you sell and immediately rebuy, your new cost basis is the current market price at time of repurchase. This means future gains start from the lower price, deferring the tax benefit rather than eliminating it entirely.
Stablecoins designed to maintain a $1 peg rarely have significant losses to harvest. However, if a stablecoin depegs and you sell at a loss, that loss is harvestable. Algorithmic stablecoin failures are a prime example.
More in this topic
Crypto Average Cost Basis Calculator
Calculate crypto average cost basis by dividing total purchase cost by total quantity. Simple method for estimating gains on cryptocurrency sales.
Crypto Capital Loss Carryforward Calculator
Calculate how crypto capital losses carry forward to future tax years. Deduct $3,000 annually against ordinary income and project multi-year loss utilization.