10 Best Crypto Tax Software & Calculator | 2024 Analysis

Navigating tax obligations can get tricky if you've engaged in numerous cryptocurrency transactions. Unlike traditional stock brokers, top crypto exchanges may not be obligated to issue tax documents summarizing your yearly transactions. 

It falls on you to figure out your earnings from last year and how they impact your taxes. In response, various software companies have launched tools designed to assist investors and traders in preparing for tax season with Bitcoin and other digital currencies.

These tools typically pull data from your crypto exchange to track your gains and losses. They can produce an IRS Form 8949 for you, detailing sales of capital assets. This form is crucial for reporting capital asset sales, distinct from reports provided by stock brokers on equity sales over the year.

Crypto tax software helps generate necessary documents and offers additional reports and services tailored to individual requirements.

Tax-loss harvesting services are available for those who experienced losses during the 2022 crypto downturn. These can reduce taxable income by accounting for losses incurred on crypto investments sold lower than their purchase cost.

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10 Best Crypto Tax Software

• Koinly – Best Crypto Tax Software Overall
• ZenLedger – Best for Accounting Features
• TokenTax – Best for Fully Automated Crypto Tax Reporting
• TurboTax – Best for Ease of Use
• TaxSlayer – Best for Expert Tax Assistance
• H&R Block – Best for Beginners 
• TaxAct – Best for Customer Support
• TaxBit – Best for unlimited transactions
• CoinLedger – Best for frequent traders
• CoinPanda – Best for Exchange Integrations

Koinly – Best Crypto Tax Software Overall

Launched in 2018, Koinly simplifies the task of reporting taxes for cryptocurrency activities, even for those who haven't tracked their transactions before. Koinly works with over 400 crypto exchanges, such as Binance, Coinbase, Crypto.com, and KuCoin, by safely pulling your transaction history via an API connection. 

This secure connection allows Koinly to view your data without changing your accounts. Koinly also supports leading crypto wallets, including MetaMask, Ledger, Trust Wallet, and Electrum, ensuring transactions between wallets are accounted for in your tax calculations.

Moreover, Koinly uses a database with over a decade's worth of cryptocurrency prices to make sure the cost basis of your transactions is calculated accurately. Before using Koinly, you should check if it supports your country, as it caters to more than 20 countries, like the US, Canada, the UK, and various EU countries, guaranteeing compliance with specific tax laws.

Koinly’s free version allows up to 10,000 transactions but doesn't include tax report generation, requiring you to handle your tax filing independently. For access to tax reports, you’ll need to choose a paid plan priced at $49, $99, and $179 annually for 100, 1,000, and 10,000 transactions, respectively.

Pros

• Includes tax harvesting feature
• Top choice for crypto tax software
• Compatible with numerous exchanges and wallets
• Works in more than 20 countries, aligning with local tax rules
• Completes tax calculations in 20 minutes

Cons

• The free version lacks crypto tax report features

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ZenLedger – Best for Accounting Features

ZenLedger, renowned for its crypto tax software catering to DeFi portfolios, has managed over 50 billion transactions for over 100,000 customers. It stands out for DeFi income tool users, like those involved in staking and yield farming, because it simplifies the tax reporting process.

This software automates the calculation of the cost basis for tokenized rewards at the time of receipt and tracks capital gains and losses on DeFi platforms. ZenLedger integrates with over 400 decentralized platforms, such as 1Inch, Aave, Uniswap, and PancakeSwap.

Additionally, ZenLedger supports over 50 blockchain standards, ensuring comprehensive coverage of your DeFi portfolio for tax purposes. While ZenLedger provides a free version for up to 25 transactions, this plan does not include DeFi features. Access to DeFi integration and full tax reporting for up to 5,000 transactions costs $149 annually.

Pros

• Offers top-tier support daily
• Generates tax reports quickly
• Leading tax software for DeFi earnings
• Integrates with over 400 exchanges and 100 DeFi platforms

Cons

• Full DeFi integration starts at $149

>> Start Using ZenLedger >>

TokenTax – Best for Fully Automated Crypto Tax Reporting

TokenTax ranks as the top choice for US clients needing an all-in-one crypto tax reporting solution, including transaction analysis and direct IRS form submission. After creating your tax report, TokenTax fills out Form 8949 for you.

Add other capital asset sales, like stocks or ETFs, to this form. If crypto is your sole investment, you can send Form 8949 directly to the IRS. While TokenTax is designed to serve US clients, its software also works for any country and currency, though clients outside the US will receive only their crypto tax report without a completed tax form.

TokenTax integrates with over 100 platforms, enabling users to import their crypto transactions through an API. This includes prominent exchanges such as BitMart, Binance, Bitfinex, and Kraken, leading crypto wallets and decentralized exchanges. It even supports NFT marketplaces, including OpenSea.

However, TokenTax's pricing is higher than that of other services. The most basic plan starts at $65 annually, covering only Coinbase API integration. For broader exchange and wallet access, the price jumps to $199. Professional traders have a dedicated plan priced at $1,599.

Pros

• Auto-fills Form 8949 for US users
• Works with every country and currency
• Integrates with exchanges, wallets, and NFT platforms
• Allows CSV uploads for unsupported platforms

Cons

• Lacks a free version
• The $65 package is limited to Coinbase API

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TurboTax – Best for Ease of Use

TurboTax Crypto comes from one of the leading tax preparation companies, providing an excellent solution for those needing to include crypto transactions in their tax filings, as well as for individuals with complex tax situations.

This platform features an intuitive navigation interface, useful tooltips, and frequently asked questions, alongside exceptional customer support. A standout function is its capability to link with third-party crypto accounts, enabling the straightforward importation of crypto transactions into the software for precise tax reporting.

Like its other software offerings, TurboTax Crypto gives users the option to consult with a tax expert for additional guidance, although this will incur extra fees.

Among all the crypto tax solutions we evaluated, TurboTax Crypto stands out as the only one that permits users to complete and file their entire tax return through its service.

Pros

• Enables direct import of crypto sales into the software
• Unique in offering full tax return filing

Cons

• Must be used with TurboTax for tax filing

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TaxSlayer – Best for Expert Tax Assistance

TaxSlayer simplifies the tax return process for individuals who prefer a straightforward approach. If you're aware of the kinds of income you must declare and understand the deductions and credits you're eligible for, you can bypass numerous irrelevant question screens and go directly to the relevant parts.

For those requiring additional guidance, the software's questions can lead you through the parts pertinent to your tax circumstances. Should you need further assistance, you can move to a more expensive package that includes support from a tax expert.

Pros

• Offers personal tax advice
• Low-cost choice for intricate tax filings
• Free federal tax filing for active-duty military
• Includes free filing for student loan interest and education credits

Cons

• Lacks bank and brokerage account syncing
• The free version excludes dependent tax credits
• Less user-friendly compared to more expensive options
• Tax professionals do not prepare or check your return

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H&R Block – Best for Beginners

H&R Block’s Crypto Tax Software is designed with unique features to simplify the crypto tax filing process. It offers integration with over 300 well-known exchanges and wallets, allowing users to easily upload and verify their transaction records, thus reducing errors from manual input. 

The service provides extensive customer support options, including live chat, phone support, in-person meetings, and a detailed knowledge base. The software uses sophisticated algorithms to ensure precise tax calculations, adhering to the most current IRS guidelines and tax legislation. 

H&R Block presents several pricing plans (Basic, Deluxe, and Premium) based on the volume of transactions, all of which include a money-back guarantee to ensure customer satisfaction without financial risk.

Pros

• User-friendly with straightforward navigation
• Offers help relevant to the current task
• Provides detailed, clear tax information
• High-quality mobile applications
• Access to paid expert assistance

Cons

• May load slowly at times
• Navigating can involve too much clicking

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TaxAct – Best for Customer Support

TaxAct suits individuals looking for an affordable alternative to premium software like H&R Block or TurboTax, yet they still desire an effective and streamlined platform for self-filing taxes. Those who prefer minimal guidance will find TaxAct’s software particularly beneficial. 

TaxAct’s plans include free expert assistance for any queries during the filing process, a significant added value introduced last year. Additionally, there's the option to upgrade to professional tax filing services.

Pros

• Allows skipping between sections without redoing questions
• Offers free help from CPAs, EAs, and tax lawyers
• Enables electronic W-2 imports directly into the software

Cons

• State return fees are higher than those of competitors
• Often suggests service upgrades or additional purchases
• Mobile app filing is limited to certain user profiles

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TaxBit – Best for Unlimited Transactions

TaxBit, established in 2018, primarily targets the United States market but serves anyone under a similar tax system. The company has recently shifted its business model to provide a more limited feature set at no cost, supporting unlimited transactions.

TaxBit's crypto tax software integrates with select crypto exchanges and allows for self-service integration across various blockchains and wallets. However, it's important to note that TaxBit does not offer customer support.

Pros

• Outstanding value
• Works with many leading exchanges
• Suitable for both individual and institutional users
• Provides free services to all user types
• Delivers thorough tax calculations

Cons

• Lacks a mobile application
• Limited to producing only Form 8949

>> Start Using TaxBit >>

CoinLedger – Best for frequent traders

CoinLedger, a widely used crypto tax software, has assisted over 400,000 users. Generating tax reports with CoinLedger involves three easy steps. Initially, you connect your exchanges and wallet information. 

CoinLedger then quickly reviews your transactions and presents a preliminary report. If the details are accurate, you can produce the final report, which details your tax liabilities for the year.

The software is compatible with over 100 platforms, covering top crypto exchanges like Kraken, Binance, Gemini, and KuCoin. However, CoinLedger only works with nine crypto wallets, including MetaMask, Trust Wallet, Ledger, Exodus, Abra, Jaxx, Trezor, MyEtherWallet, and ZenGO.

While CoinLedger offers a free version, it excludes tax reporting features. The paid versions are available through a one-time fee, depending on the volume of crypto transactions.

Pros

• Includes NFT support
• Serves over 400,000 users
• Easy three-step method for yearly crypto tax calculation
• Syncs with exchanges, wallets, and DeFi platforms

Cons

• The $199 plan is limited to 3,000 transactions

>> Start Using CoinLedger >>

Coinpanda – Best for Exchange Integrations

Coinpanda is a solid choice for traders involved in leveraged crypto activities. It’s equipped to handle margin accounts, leveraged tokens, and derivatives such as options and futures, areas where tax reporting becomes complex due to various factors.

The software meticulously calculates taxes for leveraged investments, taking into consideration both the opening and closing values of trades, as well as any associated financing fees and commissions. 

Coinpanda is compatible with over 500 exchanges, including well-known platforms like Binance, ByBit, Kucoin, and BitMEX, and supports DeFi platforms such as Algorand and Uniswap, along with more than 115 wallets.

With compatibility with 242 blockchain standards, Coinpanda supports virtually all cryptocurrencies. The service provides comprehensive tax reporting for over 65 countries, covering the US, UK, and much of Europe. 

Pricing is based on the volume of transactions, ranging from free for up to 25 transactions to $189 for as many as 3,000 transactions.

Pros

• Available in more than 65 countries
• Holds a 4.6/5 Trustpilot score
• Top choice for managing leveraged crypto positions
• Produces crypto tax reports in less than 20 minutes

Cons

• The $189 package caps at 3,000 transactions
• Portfolios exceeding 20,000 transactions need a personalized quote

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Our Ranking Methodology for the Best Crypto Tax Software

In selecting the top crypto tax software for US investors, we evaluated numerous aspects across each platform, including:

• Price: We looked at the cost of different plans, aiming to find those that offer both affordability and value for a range of crypto investors and traders.
• Number of Supported Exchanges: The count of exchange, wallet, blockchain, and coin tracking integrations provided by each service was key. This feature is crucial for straightforward importing of cryptocurrency transactions via API keys or CSV files.
• Ease of Use: We evaluated how user-friendly each crypto tax software is, from registration to data import and tax report creation. Our focus was on software that makes the entire process seamless.
• Included Tax Forms and Reports: While all the software we reviewed generates IRS Form 8949 for capital gains and losses reporting, we also looked for additional forms like Schedule C and Schedule 1 that might be necessary based on your crypto activity.
• Accountant Access: We examined the ease with which you can share tax reports with your accountant and export data to widely used tax filing applications.
• Customer Service: The availability and quality of customer support were considered, including user feedback on support experiences and the presence of online help resources.

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Best Crypto Tax Software – Buyer’s Guide 

What Is Crypto Tax Software?

Crypto tax software records your cryptocurrency transactions and calculates the capital gains or losses from selling, exchanging, gifting, or trading your crypto assets.

The leading crypto software seamlessly connects with the exchange you use for your cryptocurrency transactions. It automatically retrieves and logs the details of your transactions upon completion of any trade or exchange.

This software typically allows for manual data import. You can download your transaction history from your cryptocurrency exchange as a CSV file and then upload it into the crypto tax software you're using.

Furthermore, most crypto tax programs are designed to align with IRS requirements and U.S. tax reporting standards. They can automatically populate your tax forms at the end of the tax year, ensuring you comply with U.S. crypto tax regulations and pay the accurate taxes owed.

Why Use Crypto Tax Software?

Crypto tax software is designed to streamline the process of recording transactions and filing tax forms for your cryptocurrency investments. Here are the benefits of utilizing such software:

• Saves Time: The software automates keeping records by integrating with your cryptocurrency exchange.
• Navigates Complex Tax Regulations: The tax laws concerning crypto assets can be intricate. Crypto tax software ensures that you comply with these regulations, helping to prevent unexpected tax liabilities.
• Generates Tax Forms: The software assists in preparing your end-of-year tax documents, eliminating the need for a specialized tax accountant.
• Maximizes Profit Protection: Advanced crypto tax software employs strategies to minimize your tax expenses. For instance, it might allow the pooling of similar crypto assets to balance out gains and losses.
• Reduces the Risk of Penalties: With the complexity of U.S. tax regulations, manually reporting crypto transactions can lead to errors. Using specialized software decreases the likelihood of mistakes and potential fines.

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How Does Crypto Tax Software Work?

Due to the distinctive nature of cryptocurrency, tracking your capital gains, losses, and income across various exchanges and wallets can be challenging. Manually maintaining a spreadsheet for your cryptocurrency transactions demands considerable time and effort.

Crypto tax software significantly reduces the time and effort required. Connecting your wallets and exchanges lets you import your transactions and produce a consolidated tax report that includes all your activities.

How to Find the Best Crypto Tax Software to Suit Your Needs

The crypto tax software we've evaluated all has its strengths and weaknesses. We're going to explain how we ranked the leading providers next. Continue reading to find the ideal crypto tax software that fits your needs and budget.

Supported Countries

Before diving into the specifics, like features and pricing, it’s essential to check if the software supports your tax residency. This step is critical because crypto tax laws differ significantly across countries.

Moreover, every country has distinct tax reporting standards, including the methods for calculating the cost prices of cryptocurrencies. Additionally, specific tax advantages might be available in your country, such as allowances for capital gains.

• For instance, in the UK, for the tax year 2023/24, individuals are exempt from paying taxes on capital gains below £6,000, which will decrease to £3,000 in 2024/25. In Australia, holding crypto assets for more than 12 months qualifies for a 50% reduction in capital gains tax. 
• Similarly, in the US, holding crypto for over 12 months subjects traders to long-term capital gains tax rates, which are either 0%, 15%, or 20%, compared to the ordinary tax rates for short-term holdings of less than 12 months.

These examples highlight how crypto tax laws vary. If your tax residency is not covered by the software, it will only provide a general profit and loss summary for the year, potentially leading to overpayment of taxes.

Platform Integration

The next step involves evaluating the integration capabilities of the crypto tax software with your exchanges and wallets. Integration here refers to the software's ability to connect with your cryptocurrency exchanges and wallets using an application programming interface (API). This makes the process automatic, eliminating the need for manual transaction entries.

The software will automatically import all your past trades and wallet transactions, accurately recording the date of each transaction to determine the correct cost basis. The process can become more complex if the software does not support your exchange or wallet.

In such cases, you may have to download your transaction history as a comma-separated values (CSV) file and then upload this file into the crypto tax software. However, it's important to note that not all crypto tax software supports manual CSV file uploads, so you should verify this feature is available before you proceed.

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Tax Form Automation

For a smooth process, select a service that integrates with tax forms, meaning the service will complete your tax form and be ready to be sent to your tax authority. For instance, in the US, this form would be IRS Form 8949, which is necessary for reporting sales or exchanges of assets within the tax year.

This form needs details like the asset's name, purchase and sale dates, prices at purchase and sale, and the total gains or losses. Manually inputting this data after numerous crypto transactions can take significant time.

Support for DeFi Income

Crypto taxes fall into two categories: capital gains, which are profits from buying and selling cryptocurrencies, and taxes on DeFi income tools like staking and yield farming.

If you've engaged in staking or yield farming, choosing crypto tax software to handle these activities is essential. Tax authorities often classify DeFi rewards as income, necessitating tax payment regardless of whether you've sold the rewards.

• For instance, if you earn 0.1 ETH from staking on the first day when ETH's value is $1,500, you must include this value in your tax report.
• If, on the next day, you earn another 0.1 ETH, now valued at $1,600, this new value must also be reported.

The leading crypto tax software simplifies this by automatically determining the value of all DeFi rewards at the time of receipt. If the software fully supports your country, it will apply the correct accounting methods, like FIFO or LIFO, to your tax calculations.

Tax Loss Harvesting

We recommend selecting crypto tax software with tax loss harvesting features, enabling you to legally minimize your crypto taxes according to your country's rules.

If you're unfamiliar with tax loss harvesting, here's a straightforward explanation:

• Initially, the software reviews your yearly transactions and your current portfolio.
• It determines you owe $10,000 in capital gains taxes.
• However, you own Bitcoin worth $7,000, originally purchased for $14,000.
• Selling this Bitcoin results in a $7,000 loss.
• This loss can then be deducted from your $10,000 in capital gains, reducing your taxable amount to $3,000.
• In some regions, you can immediately buy back the cryptocurrencies sold for tax loss harvesting, maintaining your market investment while securing a tax deduction for the loss.

The 'wash sale rule' for U.S. stock traders prohibits selling securities at a loss for tax benefits and buying them back within 30 days. However, this rule doesn't apply to cryptocurrencies, as CNBC noted.

Therefore, choosing crypto tax software capable of identifying ways to legally reduce or even eliminate your tax obligations can be beneficial. With such software, these tax-saving opportunities might be noticed.

Pricing

Our research shows that most crypto tax software fees are determined by the number of transactions you need to process. This approach ensures you pay only for the services you use. Yet, it's important to note that lower-priced plans from some providers may offer restricted features. 

For instance, while free plans may allow up to 25 transactions, they might not include detailed tax reports tailored to your locale. Additionally, free plans may offer limited integration with exchanges and other essential functionalities.

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Best Crypto Tax Software – Frequently Asked Questions

How Do I Keep Track of Crypto Taxes?

Utilize crypto tax software to monitor all your crypto transactions and generate tax reports. Additionally, keeping manual records of your crypto transactions is beneficial, allowing you to adjust the reports if the software incorrectly uploads any transactions.

What Is the Best Way to File Crypto Taxes?

First, understand how to report your crypto taxes. After that, consider using crypto tax software to assist in creating your tax reports, particularly if you have more than 100 transactions.

Is Crypto Tax Software Free?

Many crypto tax software offers free features, yet they often require payment to generate tax reports. For instance, Koinly lets you track up to 10,000 transactions at no cost, but you must pay to create tax reports.

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Final Thoughts – Best Crypto Tax Software

Investing in crypto involves numerous transactions across various wallets and exchanges. We've highlighted five prominent options for creating accurate and straightforward tax reports. 

Given the wide selection of crypto tax software tools on the market, choosing the right one can be overwhelming. Our discussion aims to simplify this decision-making process for you. Each crypto tax software comes with its unique set of advantages and disadvantages. 

Some offer detailed forms, while others feature tax-loss harvesting benefits. Additionally, their pricing can influence your choice. Regardless of the tool you select, having reliable crypto tax software ensures you can prepare precise tax documentation and reports efficiently.

>> Best Crypto Tax Software – Koinly >>