17 min read
16 Jun
16Jun

In this review, we briefly explain what crypto tax software (calculators) are, what they are for, why they are necessary for crypto investors, and present a list of the best available crypto tax calculators.

Introduction

In most jurisdictions around the world, including in the US, UK, Canada, Australia, the tax authorities tax cryptocurrency transactions.

Most countries tax cryptocurrency as property. Therefore if the asset appreciates in value and you sell/trade/use it for profit, the gains are taxed like capital gains. If the asset depreciates in value and you sell/trade/use it at a loss, you may be able to deduct the losses against other capital gains to reduce your taxes.

The amount of tax depends on how much capital gain/loss there has been on the asset, how long you have held the asset, and the specific regulations in your country/jurisdiction. Because each taxable event may create a capital gain, you need to know the date, cost basis, sale value, and any fees associated with each transaction.Generally speaking, these are considered taxable events:

  • Selling cryptocurrency for fiat currency (i.e. USD, CAD, EUR, JPY, etc.)
  • Trading cryptocurrency for other cryptocurrency (e.g. BTC for ETH, does not require cashing out to fiat to be taxable)
  • Using cryptocurrency to buy a good or service
  • Receiving cryptocurrency as a result of a fork or from mining

On the other hand, the following are generally not considered taxable events:

  • Buying cryptocurrency with fiat currency (except in cases where the purchase price is lower than the fair market value of the purchased coin)
  • Donating cryptocurrency to a tax-exempt organization
  • Gifting cryptocurrency to anyone (if the gift is sufficiently large it may trigger a gift tax)
  • Transferring cryptocurrency from one wallet that you own to another wallet that you own

Crypto Taxes Done in Minutes - CryptoTrader Tax


What Are Crypto Tax Software?

The Bitcoin & Crypto Tax software (Calculators) allows users to track, manage, and calculate profits and losses from any cryptocurrency transaction and exchange transaction for tax purposes.

Crypto tax calculators are tools that retrieve data from your wallets or exchanges. Afterward, it computes your profits, losses, and income based on that data. However, you can still manually input your data for calculating. After computing your data, crypto tax calculators offer fantastic features like filling your forms or importing your taxes into other integrations like TurboTax for further processing.

Most crypto traders use crypto tax calculators to automate their crypto tax reporting. Therefore, if you’re an active trader or even a usual one, you should consider using crypto tax calculators.

How Does Crypto Tax Calculators Work?

Crypto tax calculators work in several ways. The first one and the easiest and most reliable is connecting your exchange or wallet through an API key or public address. Then, the crypto tax calculator will download your data and start calculating your taxes.

The second way is uploading your transactions as a CSV file. AI will process your data and generate your taxes form as well.

The third way is manual entry. Start entering your transactions one by one, and then the crypto tax calculator will process your entered data.

Is It Safe to Connect Tax Calculators to Exchanges?

Yes. As tax calculators are connected to exchanges through API codes, you’re the one who controls permissions granted with every API key you generate. Your assets will remain on your exchange.

And if you’re worried about your data, don’t worry. Your data is securely stored encrypted on servers.

How to Choose A Tax Calculator?

There are many aspects to decide which tax calculator fits you the most. Firstly, which forms are you looking to generate? And what accounting methods does the tax calculator use? As countries use different account methods, you need to find a tax calculator that supports your country’s accounting method.

Secondly, what type of trader are you? Because crypto tax calculators charges per tax season, you need to find a tax calculator that provides the best price in addition to supporting your country’s accounting method. 

How to Reduce Taxes by Considering Losses?

When filing your tax return, you have a few options if you have a loss. Losses in crypto can offset other capital gains, or you can carry forward the losses to future years to offset gains in crypto or other capital gains.

You can also subtract up to $3,000 of your losses from your income. If you deduct $3,000 from your income but have more losses than that, you can still carry the rest of the losses to deduct from future years or offset future gains.

Crypto tax calculators can automate that process for you and display opportunities to lower your taxes. 

Crypto tax calculators are essential. You don’t need to spend hours calculating taxes anymore when you can automate it. It would be best if you started using a crypto tax calculator as it’ll help you focus on growing your business the most.


ZenLedger - Cryptocurrency Tax Software, Crypto Tax Tool. ZenLedger is the best crypto tax software. It supports 400+ exchanges, Coinbase, tracks your gains, and automatically creates your tax forms for free.

Check out the list of the Top 10 Crypto Tax software providers currently available. Our review, designed for the buyer of crypto-tax services (both for beginners and experienced investors), will help you find the most reputable tax service providers who will help you answer every question about taxation in the field of cryptocurrencies and understand your tax reports.

  1. CoinTracking
  2. CoinTracker
  3. CryptoTrader.Tax
  4. TokenTax
  5. ZenLedger
  6. Accointing
  7. Koinly
  8. Coinpanda
  9. Recap
  10. Blockpit - Cryptotax 

1. CoinTracking.info

CoinTracking - Full Report for all your Bitcoin and Altcoin trades. Including Profit / Loss calculations, Price Charts, Unrealized Gains and a Tax-Report for all your Coins.

CoinTracking is a unified one-stop solution which can provide excellent tracking features across multiple platforms and multiple currencies. Excellent features and great integration with popular digital coins and exchange platforms, this can definitely be a powerful tool that users can take advantage of in better planning and managing their digital currency portfolio.

  • Monitor and track all your coins in one place.
    Analyze your trading data and keep up with price changes in real time.
  • CoinTracking.info is the world's premier cryptocurrency tax tool and portfolio manager.
    Initially launched in April 2013, CoinTracking's community now consists of over 869,600 active users.
  • It tracks not only Bitcoin, but also Ethereum, Litecoin, EOS, Monero, Dash and over 10,606 other altcoins. Since CoinTracking doesn't require access to your accounts, it's completely safe to use.

Currencies supported: All major fiat currencies and 10,606 coins and assets.
Countries supported: Software is flexible enough to adjust to basically all countries.
Exchanges supported: Direct imports from 52 exchanges and 8 wallets; also, legacy support for 16 closed exchanges.

Pricing:

  • Free - 0 USD per month (CoinTracking for new crypto investors)
  • Pro - 10.99 USD per month (Portfolio tracking for advanced investors) 
  • Expert - 16.99 USD per month (Powerful portfolio tracking for experienced investors)
  • Unlimited - 54.99 USD per month (The full power of CoinTracking for professional investors) 

CoinTracking is a comprehensive tool from Germany, which offers tax calculators for thousands of cryptocurrencies to people across the globe. It analyzes trades, produces real-time reports on gains and losses, and allows users to keep an eye on the value of their currencies on each exchange. Furthermore, users can calculate historical balances and profits, review realized and unrealized gains, and prepare trading and income data in order to generate tax reports. The dashboard provides an overview of a user’s portfolio, utilizing interactive charts and graphs showing various information, such as balance per day, or trades per month.


2. CoinTracker.io


Currencies supported: 2,500 cryptocurrencies and 157 fiat currencies.
Countries supported: Full support in the U.S., the U.K., Canada, Australia, and partial support for every other country (considered "partial" because it doesn't apply the nuances of local tax laws for each jurisdiction yet, but users from other countries can still get a transaction history CSV (a simple file format used to store tabular data) and capital gain CSV; more countries are in the plans for the full support).
Exchanges supported: Direct import from 38 exchanges, and more than 300 others via a CSV upload.
Price / tax year: 

  • Free - $ 0 
  • Hobbyist - starts at $ 59 
  • Premium - starts at $ 199 
  • Unlimited - Priced individually

CoinTracker is a crypto portfolio tracker and tax calculator, which offers portfolio management, tax calculation and optimization, trading, and payments. It is wallet and exchange agnostic and enables fee tracking and margin trading, among other things, while allowing users to review their tax summary and download the reports needed to file taxes – all available in a unified interface. Users’ asset balances and transactions from wallets and exchanges are automatically and continuously synced. This is done so that users can always have the latest information on the state of their assets. Additionally, you can use your Coinbase account to log in. CoinTracker is also integrated with TurboTax, a popular tax preparation software.


3. CryptoTrader.Tax


Currencies supported: More than 2,500 cryptocurrencies; capital gains / losses reporting for over 30 different fiat currencies.
Countries supported: Anyone from around the world can use the platform to calculate their crypto gains and losses.
Exchanges supported: Direct import from 30 exchanges, and more via a CSV upload.
Pricing:

  • Hobbyist - USD 49,
  • Day Trader - USD 99, 
  • High Volume - USD 199,
  • Unlimited - USD 299.

CryptoTrader.Tax is considered among the easiest and most reliable ways to prepare your cryptocurrency tax reports. The platform takes away the pain of preparing your crypto taxes by providing an easy-to-understand, simplified, and entirely automated software solution. All you have to do is connect your exchanges, import trades, and download your tax report in minutes. CryptoTrader.Tax integrates with all major exchanges to make this process quick and painless. The software calculates your gains from mining, staking, gifts, airdrops, and forks. CryptoTrader.Tax has also developed a solution for tax professionals and accountants that helps them prepare and file their clients' tax reports easily.

CryptoTrader.Tax utilizes the methods tax professionals use to calculate your tax liability and minimize it, and to make sure that the results are accurate. After you’ve logged in, you just need to connect your exchanges, import and define transactions (by an offered label) and import your trades from the exchanges/brokers, after which you can review your data. Then, your gains/losses and taxes will be calculated and your tax report ready for download in a short amount of time. Each tax report includes five documents: an income report, short and long term sales report, end of year positions report, IRS form 8949, and a full audit trail. You can file these yourself, send them to your accountant, or import them into TurboTax for e-filing.


4. TokenTax.co


TokenTax is a crypto tax software platform and a full-service cryptocurrency tax accounting firm. Calculate your crypto taxes and file your return.
TokenTax is a crypto tax software platform and a full-service cryptocurrency tax accounting firm. Calculate your crypto taxes and file your return.

TokenTax is a crypto tax software platform and a full-service cryptocurrency tax accounting firm. Calculate your crypto taxes and file your return.

Currencies supported: Major crypto and fiat currencies; for wallet imports: Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, and Stellar.

Countries supported: TokenTax supports any country, in any currency. Calculate your crypto taxes in the U.K., Canada, Australia, Japan, Sweden, South Africa, or any other country.

Exchanges supported: Over 50 exchanges directly, others via a CSV upload.

Crypto Tax Software Plans by TokenTax:

- Plans for anyone, from casual investors to crypto power users. 

Pricing: 

  • Basic - Tax liability calculated for Coinbase, Coinbase Pro, and Binance only $65/tax year 
  • Premium - For crypto investors trading on multiple exchanges and services $199/tax year 
  • Pro - Extra features for advanced investors and margin traders $799/tax year 
  • VIP - Crypto Accountant Assisted - Hands on crypto reconciliation. Advanced tax & accounting support $2500/tax year

TokenTax helps you calculate your crypto taxes, generate all the necessary tax forms, export all tax forms, and file your full return. It provides tools for strategic tax planning, as well as a summary of your crypto taxes, with an easy view of each of your trades. TokenTax calculates tax liability using multiple accounting methods, but also utilizing their minimization method to show you the lowest possible tax liability. They enable users to see the change in their tax liabilities over time by switching between tax years. TokenTax also handles margin trades from a number of exchanges.


5. ZenLedger.io


ZenLedger: Simplifying DeFi and Crypto Taxes for Investors and Tax Professionals
ZenLedger: Simplifying DeFi and Crypto Taxes for Investors and Tax Professionals

ZenLedger: Simplifying DeFi and Crypto Taxes for Investors and Tax Professionals.

Currencies supported: All major crypto and fiat currencies.
Countries supported: The platform claims they support all countries.
Exchanges supported: All major exchanges.

ZenLedger offers an interface for miners, traders, and hodlers alike to calculate their taxes, and pay only what they have to. You can import cryptocurrency transactions, after which the platform will calculate your gains and income and automatically generate necessary tax documents, including income reports, donation reports, and audit reports. 

ZenLedger will produce profit/loss statements, whether it’s for you or your certified public accountant (CPA). All of the documents generated through ZenLedger are IRS-friendly, says their website, which means that you can file them directly into your tax returns as soon as they are generated. 

ZenLedger is also an official partner of TurboTax, so you can automatically import your data into it with TurboTax Desktop or Online.

ZenLedger's Crypto Tax Software Plans

Competitively priced plans to meet your specific trading needs. Access the report forever, so you can always update or add transactions before printing and filing your tax forms.

Save 20% when you purchase multiple years

Crypto Tax DIY Plans

Invite your tax professional to ZenLedger at no cost. All plans offer a generous 1-year refund policy. 

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

Tax Professional Prepared Plans

Would you like your taxes done for you? ZenLedger will introduce you to a crypto tax professional (Tax Attorney, CPA, and/or Enrolled Agent) to get your crypto and non-crypto taxes done quickly and easily with the smartest tax strategies. All Tax Professional prepared plans include all standard tax forms. Packages are subject to time limitations. Returns signed by an attorney, CPA, or enrolled agent.

  • Silver - $750 per year
  • Gold - $1250 per year
  • Diamond - $2500 per year

Use the code "Referral15" and get an exclusive 15% discount when ordering ZenLedger crypto-tax services. Complete your crypto taxes with ZenLedger.


6. Accointing.com


Accointing.com - Bitcoin Tax and Crypto Portfolio Tracking Platform. Crypto Tracking and Tax Reporting Track, Manage, and Report All Your Crypto Platforms In One Place.

Accointing.com - is an all-in-one crypto platform that consolidates all your transactions and generates several outputs: whether as a crypto portfolio tracker, providing you portfolio analytics, or as a crypto tax tool, generating a printable tax file to report your cryptocurrencies, based on your country's jurisdiction.

Accointing.com - is the absolute solution for crypto traders, regardless of their level of experience due to its great user experience and amazing customer support, all at the best price in the market.

Accointing.com - Crypto Platform For All Your Needs: Manage your crypto portfolio, Analyze your portfolio, set up alerts, and get real-time insights. Explore the crypto market: Get an overview of the market, and track coins in your watchlist. File and report your taxes: File your crypto taxes in just a few clicks!

Accointing.com provides an insightul dashboard, available in both mobile and desktop to keep track of your performance and transactions in real-time with an amazing user experience.Instantly connect all your crypto exchanges and wallets. Over 300 wallets and exchanges supported in the platform via mobile or desktop. It only takes 5 clicks to get your tax report, that is customized to your country. Select your country to get more information.

Pricing:

  • Free Tax - 0 USD
  • Hobbyist - 79 USD
  • Trader - 179 USD
  • Pro - 299 USD

7. Koinly

Koinly - Free Cryptocurrency Tax Software. Crypto tax reports in under 20 minutes. Koinly calculates your cryptocurrency taxes and helps you reduce them for next year. Simple & Reliable. Available in 20+ countries. Free report preview, Form 8949, Turbotax.

Koinly is developed in close collaboration with local tax firms to ensure it complies with all the applicable tax laws. Multiple cost-basis methods. Choose between FIFO, LIFO, HIFO, Average Cost, Share Pooling & Spec ID. Defaults to the recommended method in your home country. Universal or Wallet-based cost tracking. Keep track of your costs in a universal pool shared across all connected wallets or separately for each wallet. Smart transfer matching.

Koinly:

Easily import your trades

Add your exchange accounts via API or CSV files and connect your blockchain wallets using public addresses.

  • DeFi, Margin trades & Futures. Whether you are staking on Kraken, lending on Nexo or going long on BitMEX. Koinly can handle it all.
  • Smart transfer matching. Koinly uses AI to detect transfers between your own wallets and keep track of your original cost.

Preview your capital gains

Get a glimpse of your profit/loss for any tax year - for free!

  • Portfolio tracking. See your total holdings, ROI and growth over time on a beautiful dashboard.
  • Profit/loss & capital gains. Easily see how much you are up or down. View realized and unrealized capital gains.

Download your tax documents

Whether you are filing yourself, using a tax software like TurboTax or working with an accountant. Koinly can generate the right crypto tax reports for you.

  • Form 8949, Schedule D. If you are filing in the US, Koinly can generate filled-in IRS tax forms.
  • Comprehensive tax report. Generate a full crypto tax report with all your long/short term disposals. Guaranteed to pass audits.

8. Coinpanda

Coinpanda - Free Bitcoin, Crypto Tax Software. Calculate, Report Your Cryptocurrency Taxes. Free tax reports, DeFi and support for 250+ exchanges. Import from Coinbase, Binance, BitMEX, Uniswap, etc.By selling coins at a loss you will reduce your total capital gains. This means you can pay less tax next year. Coinpanda helps you minimize your taxes and maximize profits. Save time and download your crypto tax reports in under 20 minutes. Crypto tax reports. Import your transactions and download tax reports with the click of a button. Coinpanda supports all popular exchanges and wallets. Capital gains report. Futures and margin trading.

Pricing:

  • Free - $0 free forever (25 transactions, Unlimited exchanges, Error reconciliation, Margin trading, All tax reports, Email support)
  • Hodler - $49 per tax year (100 transactions, Unlimited exchanges, Error reconciliation, Margin trading, All tax reports, Email support)
  • Trader - $99 per tax year (1,000 transactions, Unlimited exchanges, Error reconciliation, Margin trading, All tax reports, Email support, Live chat support)
  • Satoshi - $389 per tax year (20,000+ transactions, Unlimited exchanges, Error reconciliation, Margin trading, All tax reports, Email support, Live chat support, Custom imports)

9. Recap

Recap is an intuitive platform that helps you calculate your cryptocurrency tax position with ease. It employs a zero-knowledge encryption approach to ensure that your financial data remains hidden. This means your tax information is encrypted client-side and no one but you has access to it. 

Recap allows its users to connect their exchanges easily and make a quick import of their data. It also supports CSV files and manual trading data inputs. With Recap, users can quickly find out their tax positions, get a clear view of their gains and losses, get margin trading and income tax support, as well as download a report prepared for their accountants/CPAs.

The platform has a portfolio tracking feature that allows trading history monitoring and real-time analysis of portfolio performance and asset splits.

Recap currently supports the UK following the HMRC cryptocurrency guidance, and the US following the IRS cryptocurrency guidance. Other tax jurisdictions are under development.

Pricing:

  • Launch Pad- $0/year (100 transactions, 2 connected accounts)
  • Lift Off- $120/year  (1,000 transactions, 5 connected accounts)
  • Orbit - $240/year (5,000 transactions, ∞ connected accounts)
  • Moon - $400/year (25,000 transactions, ∞ connected accounts)


Crypto Capital Gains tax reports & filing | Recap

10. TokenTax

TokenTax - Cryptocurrency Tax Software, Crypto Tax. TokenTax - Calculate your crypto taxes and file your return. TokenTax is a crypto tax software platform and a full-service cryptocurrency tax accounting firm.TokenTax has been rated best software for calculating and filing your crypto taxes. Connect any exchange, track your gains, and automatically create your tax forms.