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8 Best FREE Crypto Tax Software in 2023

Bitcoin Tax Software and Cryptocurrency Tax Return software

What is a Crypto Tax Software?

Crypto tax software calculates your crypto taxes and simplest the entire process of filing taxes. This software is already programmed, so it becomes easy for crypto traders to use it and file their taxes without technical knowledge.

What features to look for in crypto tax software?

Before choosing crypto tax software for your tax preparation, you should look over a few features. Some of these features are mentioned below:

  1. Try looking for tax software that ensures the safety of your actual data.
  2. The crypto tax software should allow you to export files to all the major tax filings platforms, such as TaxAct or TurboTax.
  3. The software should help you track your transaction history.
  4. It should help you with complete audit support.
  5. 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?

Some of the best tax software for beginners are Koinly, CoinTracking, and CryptoTaxCalculator.

8 Best Crypto Tax Calculator [Top Selection]

1. 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.

CoinTracking Features

  1. 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.
  2. The platform helps you in tax report generation for over 100 countries by considering various factors like income, capital gains, etc.
  3. You can use 25 customizable crypto reports and interactive charts for all your trades and coins.
  4. 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.
  5. Also, you can access all the top coins by trades and volume, coin statistics, trends, and analysis.

CoinTracking Pricing

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.

2. 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.

Koinly Features

  1. 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.
  2. The platform allows automated data import and provides a solitary picture of your entire trading activity.
  3. Koinly releases reliable crypto tax reports and abides by all the applicable cryptocurrency tax laws worldwide.
  4. 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 Pricing

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.

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.

Accointing Features

  1. Accointing software is known to automate the process of crypto tax calculation.
  2. 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.
  3. You can also link your exchanges and wallets to the platform and automatically import data.
  4. Accointing offers a complete breakdown of all your transactions in a consolidated report.

Accointing Pricing

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.

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 with accuracy and ease.

CryptoTaxCalculator Features

  1. 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.
  2. CryptoTaxCalculator provides a complete breakdown of each calculation. It quickly makes you understand how exactly your taxes are calculated and what rules it applies.
  3. The platform supports Defi and DEX trading.
  4. CryptoTaxCalculator is trusted by industry-leading accountants who value accurate and detailed reports.
  5. It integrates with over 500 exchanges, including all the major international exchanges.

CryptoTaxCalculator Pricing

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.

Is CryptoTaxCalculator safe?

Yes, CryptoTaxCalculator is safe 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.

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.

Kryptoskatt Features

  1. The platform supports 1000+ DeFi protocols and over 50+ blockchains so you can freely calculate taxes on all your crypto assets.
  2. You can auto-sync all your data via API or use custom CSV files to import your transaction data from 200+ exchanges and wallets.
  3. Kryptoskatt app has an intelligent detection ability to categorize all your transactions based on specific variables to provide accurate analysis
  4. You also get dedicated DeFi and NFT dashboards to track and manage your digital assets portfolio
  5. You can easily generate Free crypto tax reports that comply with your local laws, easily detect errors, and download them once everything looks good.
  6. 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.
  7. Apart from the simplicity and friendly UI/UX of the app, 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 Pricing

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 making your choice.

Is Kryptoskatt safe?

Yes, Kryptoskatt is completely safe to use. They keep the user identity ‘pseudo-anonymous’ which means the platform only collects your email-id and no other personal data.

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.

TokenTax Features

  1. TokenTax syncs with all your wallets and accounts, eliminating manual data entry and letting you see all your data in one place.
  2. 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.
  3. 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.
  4. 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 Pricing

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.

6. 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.

TaxBit Features

  1. The software supports more than 150 exchanges and over 2000+ currencies.
  2. It offers a dashboard showing your asset balances, tax position, and unrealized profits/losses.
  3. TaxBit offers features such as tax-loss harvesting and portfolio performance analysis.
  4. TaxBit allows all the Pro users to schedule an annual phone call with a CPA to review their forms before filing.

TaxBit Pricing

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.

7. 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).

ZenLedger Features

  1. ZenLedger offers a tax-loss harvesting tool that automatically analyzes your trade history and provides a list of all the tax savings opportunities to take advantage of before the annual December 31st deadline.
  2. It easily integrates your transaction data with TurboTax Desktop or Online.
  3. ZendLedger previews your entire transaction history across wallets and exchanges in the readable spreadsheet.
  4. The platforms offer plans with Tax consultant services to guide and file tax returns.
  5. It supports 400+ exchanges, 40+ blockchains & 20+ Defi projects.
  6. The platform also renders on-demand customer service teams for free & paid plans.
  7. It Supports US tax compliance users.

ZenLedger Pricing

ZenLedger offers various account types for their crypto tax accounting platform to ensure they can provide services to a wide range of crypto users.

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.

8. 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.

Blockpit Features

  1. Blockpit helps you frame legally compliant tax reports (DE, AT, CH, USA, ES, FR).
  2. 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.
  3. You can import transactions through manual input or auto-sync and download all your country reports in one file.
  4. On the reports page, you can watch your calculated realized gains and losses for your connected exchanges/wallets.
  5. After connecting your exchanges to Blockpit through an API key, you can enable auto-sync, and all displayed information will be in real-time.
  6. The Blockpit crypto tax app checks your depots to ensure your reports are accurate.

Blockpit Pricing

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.

Conclusion for 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.

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:

  • 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.

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Coinmonks (http://coinmonks.io/) is a non-profit Crypto Educational Publication. Follow us on Twitter @coinmonks and Our other project —  https://coincodecap.com, Email  — gaurav@coincodecap.com

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