11 Best FREE Crypto Tax Software in 2023
Bitcoin Tax Software and Cryptocurrency Tax Return software
Whether you’re a beginner in crypto trading or have been in the space for a while, you’ll need to pay taxes. As regulations are kicking in, you must calculate crypto taxes correctly. Crypto tax software allows you to calculate profit and loss from your crypto trading and take deductions on expenses. Therefore, this article lists some best crypto tax software, their top features, and some key statistics.
What is a Crypto Tax Software?
Crypto tax software calculates your crypto taxes and simplest the filing process. This software is already programmed, so it becomes easy for crypto traders to use it and file their taxes without technical knowledge.
Besides, crypto tax software helps you in tracking your crypto portfolio. These features allow you to sort the transactions into gains and losses, which automatically translates into tax filing.
What features to look for in crypto tax software?
Before choosing crypto tax software for your tax preparation, you should review a few features. Some of these features are mentioned below:
- The crypto tax software you choose should allow you to seamlessly upload multiple CSV files and data and connect APIs and wallets.
- Try looking for tax software that ensures the safety of your actual data.
- The crypto tax software should allow you to export files to all the major tax filings platforms, such as TaxAct or TurboTax.
- The software should help you track your transaction history.
- It should help you with complete audit support.
- The chosen cryptocurrency tax software should provide tools for studying crypto coins and trading tools like charting.
What is the Best tax software for Beginners?
UPDATE: Awaken Tax has made their crypto tax software completely free until March 1st, 2024!
Disclaimer — This article contains product affiliate links. We may receive a commission if you make a purchase after clicking on one of these links.
9 Best Crypto Tax Calculator [Top Selection]
1. Koinly — Best for automating tax reports
Koinly is undoubtedly among the top crypto tax software founded in 2018. It automatically tracks crypto transactions across your exchange accounts and wallet addresses.
Besides, it effectively recognizes transfers within your exchange accounts/wallets and keeps all traces of original acquisition costs when you exchange cryptocurrencies.
Further, the platform supports global tax reporting, allowing you to import data via APIs, CSV files, x/y/z pub keys, and generate reports that can be downloaded in pdf formats.
In addition, it supports various accounting methods like First In First Out (FIFO), Last in First Out (LIFO), and Shared pool method and generates International tax reports, Schedule D Reports, and many more, thus facilitating services across multiple countries.
- Koinly tax software allows users to track their crypto investments using actual ROI and invested fiat. Besides, it offers a detailed income overview of your income-generating activities, such as mining, staking, etc.
- The platform allows automated data import and provides a solitary picture of your entire trading activity.
- Koinly releases reliable crypto tax reports and abides by all the applicable cryptocurrency tax laws worldwide.
- Furthermore, the platform allows you to fix issues with your transactions with various tools, including a double ledger system, highlighting errors due to incorrect or missing transactions, and auto import verification.
Koinly offers competitive pricing when compared to other platforms. Further, it allows a lifetime free trial period without the need for submission of your credit cards.
Is Koinly Safe?
Yes, Koinly is entirely safe to use as it encrypts the API keys using aes-256-gcm before storing them. Besides, all the services and data are hosted on an application that applies several security checks at every layer to protect the customers from threats.
Only authorized employees, who require the data for their job, can access customers’ data. Further, Koinly performs pen tests and vulnerability scanning through third-party security tools.
Additional security checks by Koinly include Security and Awareness training annually for employees, a detailed set of security policies, Confidentiality contracts that employees have to sign, etc.
To learn more, read our Koinly review.
2. CoinTracking — Best for preparing taxes via the mobile application
CoinTracking is known to be the world’s first crypto portfolio manager and tax reporting tool. It was launched in 2013 to make crypto enthusiasts’ lives easier.
Further, CoinTracking analyzes your trades and generates real-time reports on profit and loss, taxes, coin value realized and unrealized gains, etc.
- CoinTracking tax software allows you to import data from more than 110 exchanges and supports direct sync with the blockchain. Further, it will enable you to export files in various formats like CSV, XML, PDF, etc.
- The platform helps you in tax report generation for over 100 countries by considering various factors like income, capital gains, etc.
- You can use 25 customizable crypto reports and interactive charts for all your trades and coins.
- The most significant advantage of CoinTracking is that you have a complete history of all 10,914 coins and access to these assets’ latest prices.
- Also, you can access all the top coins by trades and volume, coin statistics, trends, and analysis.
Every new investor of CoinTracking gets a free plan with up to 200 transactions, and a desire to extend functionality encourages the investors to choose from the 3 paid plans mentioned below.
Is CoinTracking safe?
Yes, Cointracking is safe and has been in the market for over 12 years. It supports anonymous registration and offers complete data and API encryption that can also be protected with 2FA.
Further, Cointracking cannot access your withdrawal rights on the exchanges you connect with the app. They only can see activity in your account, which means that even in case of Cointracking going through a hack attack, your coins will be safe on the exchange/wallet you stored them on.
Read our CoinTracking review to learn more.
3. [NEW] Awaken — Best for DeFi and NFTs
Awaken revolutionized the crypto tax industry with its built-in NFT and DeFi support. In their first tax season in 2022, they went viral on Twitter, quickly growing from 0 to thousands of users.
When you upload your wallets, you will see that your Blur and Uniswap transactions are automatically handled properly, because they automatically support over 7,500 protocols. They accurately calculate taxes on your staking, bridging, liquidity providing transactions, and many more.
If you already paid for a crypto tax product, Awaken will match your full payment on their software. You can upload your wallets for free and see your tax summary to make sure it’s accurate before paying for the product.
- Industry-leading support for Ethereum, Solana, Polygon, Arbitrum, Base, Optimism, Fantom, BSC, and Avalanche. Automatic support for over 10,000 protocols.
- Labels for 30+ transaction types, including staking, loans, bridging, liquidity providing, and derivatives.
- Intelligent software that learns as you label. When you label a LooksRare transaction “Staking”, the software automatically finds all other LooksRare staking transaction and labels them too.
- Automatic support for over a dozen chains and exchanges, as well as an AI tool to format any CSVs into Awaken’s format.
- Upload your wallets for free, view your tax summary before you pay for the product, and download various tax forms (e.g. TurboTax 1099-B, Form 8949, Capital Gains/Losses).
If you already paid for a crypto tax product that you are not satisfied with, you can send the Awaken team a picture of your receipt and they will match your credits on their software. So if you paid $300 on Koinly this year, they will give you $300 of credits on Awaken for this year.
Awaken has five pricing tiers. Your price depends on the number of transactions you have done during the tax period.
- Up to 300 transactions: $75.00
- Up to 1,000 transactions: $150.00
- Up to 3,000 transactions: $300.00
- Up to 5,000 transactions: $400.00
- More than 5,000 transactions: Custom pricing and special packages
Is Awaken safe?
Awaken is a safe product, yes. They never ask for your private keys. All connections to your centralized exchanges are read-only and can be removed anytime.
Awaken hosts their data in secure databases encrypted using AES 256 in transit and at rest.
Awaken never shares your data with third parties. You can even register anonymously by providing a random email, first name, and last name.
Read our Awaken review to learn more.
3. Accointing — Best for novice crypto traders
Accointing is an excellent one-stop solution for all your crypto tax problems. In addition, the platform offers a wide range of tools that assist you in tracking and managing your crypto taxes in a simple and user-friendly manner.
Moreover, Accointing has flexible features that allow you to create personalized tax strategies, including a crypto tax calculator that automatically classifies and calculates your crypto tax and a Crypto tracker which tracks your crypto portfolio for insights tools.
- Accointing software is known to automate the process of crypto tax calculation.
- It offers various insight tools and effortlessly manages your crypto portfolio. Further, you get an asset allocation chart that suggests what crypto asset you should buy next.
- You can also link your exchanges and wallets to the platform and automatically import data.
- Accointing offers a complete breakdown of all your transactions in a consolidated report.
Accointing is the one that provides the most accessible prices in the market with free transaction reports. It also includes transaction features. This platform offers 4 plans.
Is Accointing safe?
Yes, Accointing is safe to use. It secures the entire inter-service or client/server communication with SSL. Further, it uses Identity authentication and management through OAuth, an open-standard authorization protocol to simplify the platform's complexity.
You can export your data from the platform anytime with no restriction. If you decide to delete your account, all your data is erased from its databases.
4. CryptoTaxCalculator — Best for complex tax calculations
CryptoTaxCalculator works in such a way that it can understand your tax obligations. Moreover, their tools help identify, organize, and track all your crypto activities across hundreds of exchanges and blockchains accurately and easily.
Besides, the platform came into the picture in 2018 with its headquarters in Sydney, Australia. Moreover, don’t struggle with excel anymore and use Crypto Tax Calculator to get configurable tax settings. Furthermore, it integrates significant exchanges, wallets, and chains and covers NFTs, DEX, and Defi trading.
- The platform offers powerful and accurate tax reports. It performs all your tax calculations with high accuracy. Also, they carefully consider all complex scenarios like DEX transactions, Leveraged trading, staking rewards, Defi loans, and gas fees.
- CryptoTaxCalculator provides a complete breakdown of each calculation. It quickly makes you understand how exactly your taxes are calculated and what rules it applies.
- The platform supports Defi and DEX trading.
- CryptoTaxCalculator is trusted by industry-leading accountants who value accurate and detailed reports.
- It integrates with over 500 exchanges, including all the major international exchanges.
The CrytoTaxCalculator pricing structure offers you four different plans for your accounts. So, to get your crypto tax reports, you need to pay for the desired plan.
Besides, the pricing structure in the platform works with the yearly subscription method, and all the plans come with a 30-day money-back guarantee if you are unsatisfied with it.
Is CryptoTaxCalculator safe?
CryptoTaxCalculator is safe product and never asks for your crypto wallet’s private keys. Besides, all the API keys are securely stored and encrypted in transit and at rest.
Furthermore, the platform is SOC 2 Type 1 certified, with security mechanisms in place to ensure the safety of your data. Again, CryptoTaxCalculator enforces a password complexity standard to maximize security for users, and all credentials are stored using a salt + bcrypt hash function.
5. Kryptoskatt — Best for reducing your crypto tax bills
Kryptoskatt is the best crypto tax software if you are looking to maximize your tax savings while calculating your crypto taxes in just a few minutes. The web3 application serves you with a wide range of integrations — supporting more than 200+ wallets & exchanges, 50+ blockchains, 1000+ DeFi protocols, and dedicated support for your NFTs. So, whether you are staking or lending, or if your portfolio includes DeFi or NFTs — Kryptoskatt has got you covered.
The unique utility of the platform paved its way to the fifth season of the Binance Incubation Program. Do I need to say anything more?
- The platform supports 1000+ DeFi protocols and over 50+ blockchains so you can freely calculate taxes on all your crypto assets.
- You can auto-sync all your data via API or use custom CSV files to import your transaction data from 200+ exchanges and wallets.
- Kryptoskatt app has an intelligent detection ability to categorize all your transactions based on specific variables to provide accurate analysis
- You also get dedicated DeFi and NFT dashboards to track and manage your digital assets portfolio
- You can easily generate Free crypto tax reports that comply with your local laws, easily detect errors, and download them once everything looks good.
- The platform makes use of smart tax-saving strategies like Tax Loss Harvesting and automatically utilizes it on applicable transactions to save you thousands on your crypto taxes.
- Apart from the app's simplicity and friendly UI/UX, one thing that makes Kryptoskatt stand out is its massive integration support for DeFi transactions and NFTs, which is far more than any other competing solutions available in the market.
Kryptoskatt has one of the most affordable pricing ranges in the market. So, you are not just saving money on your taxes but also on the platform itself. It also includes a free plan so you can easily explore the platform before choosing.
Is Kryptoskatt safe?
Yes, Kryptoskatt is completely safe to use. They keep the user identity ‘pseudo-anonymous’, meaning the platform only collects your email-id and no other personal data.
They do not collect your private keys or API keys with write access (meaning they can only read your transaction data for calculation purposes). So, all your crypto funds remain completely secure at all times.
Furthermore, Kryptoskatt uses encryption for storing all your data and secures all client/server communication with SSL. To maintain all security standards, the team actively provides app updates and bug fixes.
6. TokenTax — Best for integration with popular exchanges
TokenTax was founded in 2017 and is a tax filing company offering services across 18 countries. The company offers a standalone application that effectively calculates taxes for crypto transactions and a full-service filing.
Further, being a tax-first company, it specializes in tax minimization strategies. The company supports manual data entry and CSV uploads from different exchanges that don’t have API connections.
- TokenTax syncs with all your wallets and accounts, eliminating manual data entry and letting you see all your data in one place.
- You can track and preview your tax liability, so you’re never caught unprepared. The company’s tax reports include FIFO, LIFO, Minimization, and average cost tax liability calculations, Tax loss harvesting dashboard, Mining and staking income reports, Ethereum gas fee reports, and custom enterprise reports.
- The software automatically generates every tax form you need to complete your filings — whether you file with TokenTax or a different provider, such as TurboTax.
- TokenTax offers advanced reconciliation services from crypto-savvy tax professionals for investors with more complex accounting needs. They’re well-equipped to handle data that includes: Missing cost basis or messy data situations, High transaction volume, Cross-chain transactions, and Enterprise solutions.
TokenTax offers a unique pricing plan for crypto traders. To begin with, it provides two types of services- one specifically for crypto tax calculations and the other to handle all your tax filing needs.
Is TokenTax safe?
Yes, TokenTax is safe and secure software. It uses encryption and read-only access to keep all the information safe. Besides, the company protects your data with multiple forms of security.
7. TaxBit — Best for upfront tax planning
TaxBit is an easy-to-use crypto tax solution founded by CPAs and tax attorneys. The software automatically imports all your trades directly from the exchange APIs. It does all the calculations for you to do your trading activities instead of accounting easily.
Further, Taxbit is unique because it does not require you to prepare the tax forms before filing them. It supports calculating capital gains and losses in Ethereum, Bitcoin, Ripple, Polkadot, and several other Altcoins. Besides, TaxBit helps you to calculate your taxable income based on real-time exchange rates.
- The software supports more than 150 exchanges and over 2000+ currencies.
- It offers a dashboard showing your asset balances, tax position, and unrealized profits/losses.
- TaxBit offers features such as tax-loss harvesting and portfolio performance analysis.
- TaxBit allows all the Pro users to schedule an annual phone call with a CPA to review their forms before filing.
The pricing of TaxBit is quite similar to other crypto tax software in the market. There are three paid tiers to choose from and a free trial for every type of account you decide to purchase.
Is TaxBit safe?
Yes, TaxBit is absolutely a secure crypto tax software. The company has achieved an independent SOC 2 certification, which means it has excellent security practices to keep user information safe.
Besides, TaxBit uses database servers hosted by AWS RDS, and all the data is encrypted using AES 256 in transit and at rest.
8. ZenLedger — Best for tax professionals
ZenLedger crypto tax software is best for crypto traders and tax professionals who need a way to simplify the process of crypto tax accounting during this new wave of decentralized finance (Defi).
Besides, similar to many other crypto trackers on the market, ZenLedger integrates with various exchanges and cryptocurrency networks to offer full coverage for traders who operate in these volatile markets.
- ZenLedger offers a tax-loss harvesting tool that automatically analyzes your trade history and lists all the tax savings opportunities to take advantage of before the annual December 31st deadline.
- It easily integrates your transaction data with TurboTax Desktop or Online.
- ZendLedger previews your transaction history across wallets and exchanges in a readable spreadsheet.
- The platforms offer plans with Tax consultant services to guide and file tax returns.
- It supports 400+ exchanges, 40+ blockchains & 20+ Defi projects.
- The platform also renders on-demand customer service teams for free & paid plans.
- It Supports US tax compliance users.
ZenLedger offers various account types for their crypto tax accounting platform to ensure they can provide services to a wide range of crypto users.
So whether you’ve only recently made your first bitcoin purchase or have been trading various crypto assets regularly for years, ZenLedger will have an account tier that fits your needs.
Is ZenLedger safe?
ZenLedger is a safe and trusted platform as it only has read-only access to all your transactions. Further, the platform encrypts customer data and avoids all personally identifiable information as much as possible to increase its security.
9. Blockpit — Best for simple and interactive UI
Blockpit has been dealing with compliance with digital currencies such as Bitcoin and has developed a software platform that combines all the sources of digital currencies. This simplifies processes resulting from complex regulations, anti-money laundering guidelines, and tax laws.
Besides, it integrates a beneficial real-time tax reporting feature for its platform users and increases effectiveness in compliance and AML processes through seamless integration into your (crypto) custodian solutions.
- Blockpit helps you frame legally compliant tax reports (DE, AT, CH, USA, ES, FR).
- After connecting your exchange/wallet to Blockpit app, you’ll get an overview of all your holdings. Therefore, you can look at how you have been doing overall.
- You can import transactions through manual input or auto-sync and download all your country reports in one file.
- On the reports page, you can watch your calculated realized gains and losses for your connected exchanges/wallets.
- After connecting your exchanges to Blockpit through an API key, you can enable auto-sync, and all displayed information will be in real-time.
- The Blockpit crypto tax app checks your depots to ensure your reports are accurate.
Blockpit charges its users per tax year. So, choose a plan that fits you the most.
Is Blockpit safe?
Yes, Blockfit is safe to use, and all the exchanges are connected through an API key that does not permit withdrawals. Therefore, all of your assets remain on your exchange.
Further, when it comes to wallets, they are connected through a public key and never require your private key.
How does tax software work?
To use tax software, follow these steps:
- Enter income and deductions: Input your income from tax documents like W-2, 1099 K, or 1099-INT, as well as any deductions you may be eligible for, such as mortgage interest rates, business expenses, or contributions to a health savings account.
- Answer questions: Depending on the tax software you choose, you may be asked a series of questions similar to those a tax professional asks. You may need to enter your information directly onto a tax form and more tax knowledge to ensure you enter the information correctly.
- Calculate taxes: After navigating the tax software, you will know whether you owe taxes or can expect a refund. You can enter your banking details to pay taxes or receive a direct deposit to your bank account. Finally, you can opt to file electronically or a paper tax return.
It’s important to note that tax software may differ depending on the provider, but most software works similarly. You should have some tax knowledge to ensure you enter the information correctly. If you have a complex tax return, consulting with a tax professional may be best.
How is crypto taxed in the US?
Cryptocurrency is taxed in the United States at the same rate as capital gains on short-term and long-term capital assets. Long-term capital assets are taxed at a lower rate than short-term capital holdings. A short-term holding is one in which you retain an asset for less than or equal to 365 days; otherwise, it is referred to as a long-term holding.
How to calculate crypto gains and losses?
To calculate gains or losses on crypto, follow these steps:
- Tracking crypto transactions: Keep detailed records of your trades, including the amount and currency of the digital asset sold, fiat value at the time of acquisition and trade/sale, and the dates of acquisition and sale. This will help you accurately calculate your gains or losses. Consider using crypto tax software to track your transactions.
- Finding your cost basis: Cost basis refers to the original value of an asset for tax purposes. To calculate crypto capital gains and losses, use the formula: proceeds — cost basis = capital gain or loss. Consider your chosen accounting method (FIFO, LIFO, HIFO) and transaction fees.
- Calculating crypto capital gains tax rate: Crypto transactions are taxed at different rates depending on when the assets were held. Short-term trades (held for a year or less) are taxed at your ordinary income tax rate, while long-term trades (held for more than a year) are taxed at preferential rates of 20%, 15%, or 0% based on your tax bracket.
- Calculating your crypto gains: With your transaction history and cost basis, you can calculate your capital gains and losses. Subtract the cost basis from the proceeds to determine your gain or loss. Split your calculations between short-term and long-term trades, as they are taxed separately. Consider using crypto tax software to simplify the process.
Remember to note special situations, such as lost coins, crypto scams, and ICOs, as they may affect your calculations. It’s important to accurately track your transactions and consult with a tax professional for specific guidance on calculating gains or losses on crypto.
How to track Crypto transactions for taxes?
Use crypto tax software to keep track of all your cryptocurrency transactions and generate your tax returns.
Also, keeping track of your cryptocurrency transactions manually will allow you to edit any uploaded transactions from the reports the program generates.
What happens if you don’t file crypto taxes?
If you fail to report taxable crypto activity and undergo an IRS audit, you could face various consequences, including interest, penalties, and potentially criminal charges. David Canedo, a CPA and tax specialist, warns that not disclosing crypto activity may be seen as tax evasion or fraud. While the chances of IRS scrutiny may be lower due to limited staffing, the agency may still pursue cases involving larger amounts of money.
Are Crypto to Crypto trades taxed?
Yes, you must pay crypto to crypto trades. You should keep track of these sales since you are either making money or losing money from them, and you should use Form 8949 to report them to the IRS.
How is a crypto gain or loss “realized”?
Gains on cryptocurrency are not considered “realized” until you sell, exchange, or spend the asset. You won’t have any taxable gains or losses if you purchase a token and hold onto it without selling or trading it for another token. However, once you engage in cryptocurrency transactions, such as selling, exchanging, or using it for purchases, you may be subject to capital gains tax.
What is the history of crypto taxes?
The cryptocurrency was not taxed until 2014.
Based on an IRS decision from 2014 that cryptocurrency should be regarded as stocks or bonds rather than as dollars or euros, crypto taxation regulations are based in the United States.
As a result, it is subject to company taxes and capital gains taxes, just like other assets.
It was decided in 2019 that cryptocurrencies acquired through hard forks and airdrops are subject to income tax.
Infrastructure Bill 2022 mandates that individuals file income and capital gains tax reports, and that cryptocurrency exchanges operate as brokers by submitting transaction information for consumers to the IRS. Additionally impacted are decentralised exchanges.
Businesses should file information about the sender if they receive more than $10,000 in cryptocurrency.
What is the Best tax software for Beginners?
Some of the best tax software for beginners are Koinly, CoinTracking, and Accointing.
What to look for in a crypto tax solution?
It will help if you look for Automated Data Input, Flexibility, Pricing, Reliability, Features, Tax Reports Quality, Customer Support, and Ease of Use of the crypto tax solution before using it. If you’re new to crypto, avoid juggling between two tools to manage your crypto portfolio and taxes.
Is it necessary to pay taxes on cryptocurrency capital gains?
Yes, you must pay taxes on your cryptocurrency gains based on your jurisdiction.
How to avoid crypto tax?
There are some ways by which you can strategically and logically avoid crypto taxes. A few of these are:
- Invest crypto into an IRA, pension, or annuities fund
- Offset gains with losses
- Hold on to your cryptocurrencies and qualify for a long-term capital gains rate
How to file crypto taxes?
Using any of the cryptocurrency tax calculators mentioned above, once completed above software is also linked with CPAs which can help you file your crypto taxes.
Conclusion — Best Crypto Tax Software
Trading cryptocurrencies demands paying taxes, and for the said purpose, you need software that accurately calculates your capital gains and losses. Thus, crypto tax software makes this extremely easy and automatically syncs different crypto exchanges and wallets to provide you with tax reports within minutes. Undoubtedly, CoinTracking and Accointing are the best tax software for cryptocurrencies. Both the software manages your crypto portfolios, offers accurate tax reports, and supports different exchanges and wallets. Further, both of these platforms are ideal for novice as well as professional traders.
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