17 Best Crypto Tax Software Solutions to Use for Tax Season
The potential for financial gains has increased the popularity of crypto exchanges. This new digital currency allows both beginner and novice investors to reap profits. However, transactions also come with tax liabilities.
Tax preparation quickly becomes a chore without a way to streamline the process. Enter the best software solutions to help ease the daunting tasks of reporting capital gains and capital losses from transactions.
Continue reading to learn more about the 17 best crypto tax software solutions, their top features, costs and more to help you choose the best one for you.
Although crypto is an alternative currency, it still has real value. Owners can spend it like traditional money. Additionally, cryptocurrency can be held similarly to stocks to achieve long-term gains. Profits can also be attained by mining this currency.
As a result, crypto is considered a capital asset that’s subject to taxation just like traditional money. The rules for capital gains and capital losses apply to determining what’s owed in taxes.
Regulations for how crypto is taxed vary among different countries. For example, virtual currencies in the U.K. and U.S. are treated like other capital assets in your portfolio. If you gift cryptocurrency to another person in the U.K., you must pay taxes on the amount.
The rules of capital gains and capital losses mean you may owe taxes on Bitcoin and altcoins if the selling price is higher than what you paid to buy them.
How to Calculate Crypto Tax
There are a number of factors that determine how to calculate your tax rate:
• Income bracket
• Whether crypto mining is your personal hobby or business venture
• Transactions that are either capital gains or capital losses
• Whether you have short-term or long-term gains or losses
As an investor, you might complete a high number of cryptocurrency transactions each year. Keeping good records for tax reports might not be possible. The tedious process of calculating taxes can be easier with the best crypto tax software that matches your needs.
Features will change, but some of the best crypto tax software solutions can automatically sync across wallets and different crypto exchanges. In addition to calculating capital gains and losses, you may also get tax reports to file taxes in your country.
The best crypto tax software will also include helpful features and match your skill level.
What Is Crypto Tax Software?
Crypto tax software is a program designed for you to prepare taxes for cryptocurrency assets. This tool helps you calculate capital gains or capital losses and apply deductions for expenses.
How Does Crypto Tax Software Work?
Having the best crypto tax software can simplify the calculating and filing process for tax returns. After calculating your gains or losses in cryptocurrency, the software can automatically fill in the information.
This reduces how much time you spend completing a return. In addition, the best crypto tax software can minimize the often confusing task of filing this type of return.
Essentially, the mechanics of using the best crypto tax software are similar to the software you may use for tax preparation of other assets. You can sign up to use the software. Most programs let you integrate crypto exchanges and wallets to pull transaction history as needed.
After choosing the best crypto tax software for your needs, you provide the required information [such as your legal name, email, dependents and AGI (adjusted gross income)] for the previous year. Other information that might be required includes 1099-G forms and business receipts.
Features to Look For in Crypto Tax Software
The best crypto tax software will take the information you enter into the system and reconcile the transactions. The software will also produce detailed tax reports of gains and losses, according to your local and/or state and national tax authority guidelines.
Typically, the best crypto tax software doesn’t assume that you can breeze through the steps. Some programs offer professional tax assistance. This helps if you have taxation-related questions. Customer support may be available in many forms, such as chat, email and phone.
Some of the other features that may stand out in the best crypto tax software solutions include:
• Support for all or most crypto exchanges — automatic synchronization or integration with crypto exchanges to gather data, which is used to calculate how much you owe in taxes before automatically filing your taxes
• Calculating your profits and losses in cryptocurrency while keeping a record of the transaction history
• Allowing you to import and export reports of your crypto transactions
• Making qualifying tax deductions and tax credit suggestions, based on your information
• Free or affordable to use (advanced users may believe paid solutions are the best crypto tax software with the best features)
• Audit support and assistance from crypto tax experts
• Long-term storage of tax information, which allows you to access previous records for many years
• An option to file state tax returns in addition to filing a federal return
• Checks and balances with alerts if the information entered is incorrect
• Tools to study crypto coins
• Trading tools
• Crypto tax software to match your needs.
• Easy to use, no matter your computer skill level
What Are the Best Crypto Tax Software Solutions?
While you want to get a good return on your investments, the last thing you want is to learn that you didn’t pay enough taxes. The following is a list of 17 of the best crypto tax software solutions available on the market.
A one-stop solution, the Accointing platform offers a comprehensive set of features that tracks and manages Bitcoin portfolios.
One thing that makes Accointing one of the best crypto tax software solutions is its personalized dashboard. You can review insightful visualizations of the actual value of data.
The only notable downside to using Accointing is that the software doesn’t include IRS tax forms, such as Schedule D.
Pros to using Accointing include:
• Support for American and European tax reports
• Over 300 exchanges
• Compatible with over 7,500 currencies
• Easy-to-use interface for both mobile and desktop applications
You can choose from four pricing plans:
• Free tax — comes with tax preparation access for a maximum of 25 transactions
• Hobbyist — costs $79 for up to 500 transactions; includes email support
• Trader — allows 5,000 transactions for $199 and includes the same features as the Hobbyist plan
• Pro — costs $299 for 50,000 transactions
Koinly’s popularity places it on the best crypto tax software list as a fast processor of digital asset tax returns. Available across 20 different countries, Koinly allows you to complete your crypto taxes in less than 20 minutes.
Some of Koinly’s standout features include:
• Dashboard display of profits and losses, ROI and current holdings
• 100% audit accuracy for tax reports
• Double-entry ledger system
• Support for 300-plus wallets and exchanges
• Easy to import and export data
• Offers tips on reducing taxes
One downside to using Koinly is that it doesn’t accept cryptocurrency as payment for service.
Pricing plans for Koinly are as follows:
• Generous offering of up to 10,000 transactions under the free plan
• $49 per tax year for the Newbie plan
• $99 per tax year for the Holder plan
• $179 per year for the Trader plan
TaxBit is one of the earlier crypto tax software platforms on the market. You can use it for your financial and tax needs to cover any type of digital asset. TaxBit is the best crypto tax software for individuals, government entities and large enterprises.
Processes within this tax software are completed by live experts, instead of the bots used by other platforms. TaxBit uses intelligent optimization tools for tax calculations. Auto-syncing is limited, which can be a downside.
Taxbit also offers a free plan which includes unlimited transactions, and features to complete tax reports. Additional plans include Basic for $50 per year, with email and live web support.
The Plus and Pro plans offer the same features for $175 per year and $500 per year, respectively. The Pro plan also provides a dedicated concierge.
TokenTax is known as the best crypto tax software for complex filings. If you need more than a crypto tax calculator, TokenTax offers a full-scale accounting firm for your crypto taxes. This gives you more confidence in receiving comprehensive, reliable and accurate services.
Businesses and advanced users can take advantage of TokenTax’s audit assistance, support for all crypto exchanges and automatic integration. Additionally, you can use the software to access forms to file your taxes.
Pros to using TokenTax:
• Support for international transactions
• Access to over 85 exchanges
• Tax-loss harvesting tool
• Produces auto-generated tax reports
Cons to using TokenTax:
• Few features come with the Basic plan
• Does not offer a free trial
TokenTax offers four paid plans:
• Basic — up to 500 transactions, $65 per tax year
• Premium — up to 5,000 transactions, $199 per tax year
• Pro — up to 20,000 transactions, $799 per tax year
• VIP — up to 30,000 transactions, $3,499 per tax year
ZenLedger makes the best crypto tax software list because of its tax filing accuracy, which helps you avoid overpaying. ZenLedger tracks your transactions, and keeps a history of your profits and losses.
This fast and user-friendly platform lets you import transaction data, and also review and download your completed forms. ZenLedger is known for stellar customer support through phone, email and chat.
The platform uses two-factor authentication for extra security and privacy. One con to ZenLedger is that only U.S. users have access to local tax forms.
Pricing seems to be on par with similar platforms. You can get up to 25 transactions with the free plan. Once you reach this limit, you can choose from four paid plans, priced per tax year:
• Starter — $49 for up to 100 transactions
• Premium — $149 for up to 5,000 transactions
• Executive — $399 for up to 15,000 transactions
• Platinum — $999 for unlimited transactions
CoinTracking makes the best crypto tax software list due to more than 13 years of impeccable service. You can track profits and losses and keep track of the value of your digital assets with its intuitive dashboard.
CoinTracking is available for use in more than 100 countries. Choose from 14 different tax methods. Also, access video instructions, tutorials and FAQs as you complete your tax filings.
Other pros to using CoinTracking include:
• Ease with imports and declarations
• Chart history for 18,778 coins
• Easy onboarding
The one con to using CoinTracking:
• Mobile apps lack user-friendly features
Using this software is priced as follows:
• Free usage for 200 transactions and two backups
• Pro — 3,500 transactions and five backups for $10.99/month
• Expert — 20,000 transactions and 10 backups for $16.99/month
• Unlimited — limitless transactions and 20 backups for $54.99/month
As one of the best crypto tax software solutions, CoinTracker offers a free trial for up to 25 transactions. You can use it for accounting functions and for tracking your portfolio performance.
In addition, CoinTracker supports over 8,000 cryptocurrencies and 300+ exchanges. You can also share tax reports with professionals.
Pros of using CoinTracker:
• iOS and Android apps are available for mobile use
• Generate tax reports using 12 different methods
Cons of using CoinTracker:
• Limited transactions with the free plan
• You can only access unlimited transactions by purchasing the unlimited plan for $2,999
The pricing structure is based on the number of transactions you complete each year. Costs start at $59 for 100 transactions and $2,499 for 1,000,000 transactions.
If you need comprehensive services, BitcoinTaxes is the best crypto tax software solution to choose. You receive help with investments, filing taxes and audit defense for any potential IRS investigation.
BitcoinTaxes can handle complicated accounts that may have lost records or missing or unmatched transactions. Expert advice is always available to help you with complex crypto trading, such as staking, wash sales and margin trading.
Pros to using BitcoinTaxes:
• Easy data imports
• Easy integration with other tax applications
• Compatibility with multiple crypto trading platforms
One con to using BitcoinTaxes is that it only offers email support.
Yearly pricing plans for BitcoinTaxes are as follows, with email support and all standard features:
• Free — up to 20 transactions
• Premium — up to 1,000 transactions for $39.95
• Premium Extra — 5,000 transactions for $49.95
• Deluxe — up to 10,000 transactions for $59.95
9. Crypto Tax Calculator
Use Crypto Tax Calculator to streamline tax calculations with a direct connection to your exchange’s information. Also, being able to classify your transaction history and generate tax reports makes this one of the best crypto tax software solutions on the market. It offers a free trial with no expiration date and it allows you to import data, review transactions, see a full breakdown of your calculated against each transaction along with access to a dashboard.
This software uses an algorithm for computations that show actual income and capital gains. You can input this information into your tax preparation program.
Some pro features to consider include:
• Online chat support
• Ability to keep track of crypto assets and taxes
• Support for over 400 platforms
One downside to Crypto Tax Calculator is that it doesn’t accept crypto payments.
Crypto Tax Calculator offers four pricing plans and a money-back guarantee within 30 days.
• Rookie — perfect for enthusiasts or holders with up to 100 transactions, starting at $49
• Hobbyist — supports wallets with up to 1,000 transactions, starting at $99
• Investor — covers derivatives, Defi, staking and DEXs with up to 10,000 transactions, starting at $189
• Trader — analyze tax strategies and receive up to 100,000 transactions, starting at $299
BearTax is another platform to consider among the programs that made this best crypto tax software list. It offers features that help you to calculate how much you need to pay in crypto taxes. Additionally, you can import data from compatible exchanges.
By using intelligent algorithms, BearTax identifies transactions that aren’t subject to taxation and removes them from appearing on tax reports. Although you can preview your capital gains and losses without paying, this platform doesn’t offer a free subscription.
Plan pricing is as follows:
• Basic — 200 transactions for $49 per year
• Plus — 25,000 transactions for $149 per year
• Pro — 1,000,000 transactions for $499 per year
BearTax is compatible with LIFO and FIFO methods of reporting. Additionally, you can use classifications for your crypto income, such as airdrops, mining, gifts, referrals and staking.
11. Crypto.com Tax
Crypto.com Tax is free for users of all levels who need to pay taxes on their cryptocurrency assets. Its broad ecosystem of products and services constantly expands to meet the needs of both novice and advanced crypto investors.
No matter your number of transactions within a single tax year, Crypto.com Tax aims to ease the process of filing tax returns for cryptocurrency transactions. Its user-friendly interface makes it possible for you to turn tedious steps into reliable and well-organized tax reports.
Pros of using Crypto.com Tax for crypto taxes include:
• Complete transaction history
• Information on capital gains and capital losses
• Support for all major exchanges
Cons to using Crypto.com Tax for crypto taxes include:
• No tax calculations for mining, staking and liquidity mining
• No support for smaller crypto exchanges
• Does not support all wallets
If you want to get started in crypto trading without paying, Coinpanda is the best crypto tax software solution to make that happen. There are tons of features in the free option that other software solutions don’t provide.
Coinpanda allows you to use over 450 exchanges such as Bybit, Coinbase and FTX to import transactions. Based on your transactions, Coinpanda will provide you with a detailed report of your crypto portfolio, giving you insights into your capital gains, as well as generate a tax report.
The user-friendly interface helps you reduce your tax liability on a variety of transactions. Also, you can sync transactions with the wallets that you own.
Pros of using Coinpanda:
• Support for more than 7,000 cryptocurrencies
• Uses local crypto taxing laws to manage tax reports and portfolios
Cons of using Coinpanda:
• Only 25 transactions in the free plan
• Only 3,000 transactions in the pro plan
• Importing cryptocurrency wallets might be difficult for novice investors
Pricing for Coinpanda:
• Holder — $49 for 100 transactions
• Trader — $99 for 1,000 transactions
• Pro — $189 for 3,000 transactions
Commonly used for standard tax filing, TurboTax also offers one of the most easy-to-use platforms for crypto taxes. Online planning choices make tax filing convenient. You can use the standard tax filing software for crypto taxes by selecting the Cryptocurrency option under Wages.
Pros to using TurboTax:
• Online resources and assistance
• Access to a live tax expert (with upgrade)
• Easy-to-use options for uploading and importing tax data
• Keeps track of transactions values
• 100% guarantee of calculation accuracy
Cons to using TurboTax:
• Limited functionality for cryptocurrency transactions
• Can be very expensive
Pricing plans include a free plan for simple returns. You can purchase the self-employed plan to complete complex crypto filings.
14. CoinLedger (Formerly Known As Cryptotrader.tax)
CoinLedger, formerly known as Cryptotrader.tax, supports more than 35 exchanges to make importing trades easy. Calculating both capital gains and capital losses is also simplified on this platform. You can also automate tax reports and forms.
Other reports that come with this software are cryptocurrency income, short-term and long-term sales and an audit trail. CoinLedger makes it easy for you to integrate data from these reports into tax filing programs.
Pros to CoinLedger:
• Crypto wallet and exchanges integration
• Tax-loss harvesting
• Integration with tax preparation software
• Competitive pricing
Cons to CoinLedger:
• You’re unable to file a crypto tax return directly from the program
• Lower-priced plans have limited customer support
CoinLedger offers a free version within the platform. Pricing per tax year for higher tiered versions ranges from $49 to $299 based on how many trades are imported.
The confusing nature of crypto assets makes having one of the best crypto tax software solutions even more important. Ledgible seeks to simplify the transactions process with features such as:
• Real-time client collaboration
• Automatic matching transfers made from wallets to crypto exchanges
• Exporting transactions
• Historical pricing overview
• Tax-loss harvesting
• Income overview
• Variety of features makes crypto processes easier
• Certified integrations for accounting platforms
• Top platform for portfolio tracking and tax reporting
• Most features are tailored for accounting firms
• Individual investors may find some features confusing
• Expensive to use premium features
• Limited customer support
• Tax professional version costs $49 per year for up to 200 transactions per client
• Consumer version has two tier costs: $50 (for 200–1,000 transactions); $100 per each 2,500 transactions over 1,000
Blockpit is one of the best crypto tax software platforms to combine all sources. This helps to simplify complex tax laws and regulations surrounding digital currencies. Features on this platform allow you to automatically fill in and report your taxes.
Pros to using Blockpit:
• Supports a wide range of countries
• Generates localized tax reports
• Use of simple and interactive UI
Cons to using Blockpit:
• Supports fewer exchanges than some other crypto tax software
• Does not integrate with TurboTax features
Pricing for Blockpit:
• Basic — free for up to 25 transactions per tax year, no premium support
• Advanced — costs $199 per tax year for up to 25,000 transactions and premium support
• Premium — costs $599 per tax year for unlimited transactions and premium support
17. LukkaTax (Formerly Known as LibraTax)
LukkaTax, formerly known as LibraTax, is also considered one of the best crypto tax software solutions available. You can use any source, such as wallets and exchanges, to collect data. LukkaTax supports more than 3,700 cryptocurrencies.
Pros to consider:
• Easily accessible features included in one plan
• Versatile software that enables you to include different types of transactions, such as mining income, margin trading and airdrops
• All-inclusive simple pricing plan
• You’ll receive customer service responses to inquiries within one day
Cons to consider:
• Only supports CSV files for uploaded transaction data
• Not compatible with standard tax filing programs
• Reports are calculated in U.S. dollars, even if your transaction uploads are in foreign currency
Is Crypto Tax Software Worth Using?
Determining if crypto tax software is worth using depends on whether you choose the right software for your needs. If you’re a beginner in the digital currency world, and make a small number of transactions, you may opt for a free plan like Blockpit or Koinly.
However, ZenLedger or TokenTax might be the best crypto tax software solution for frequent trades. These platforms may allow you to make up for price plan cost through tax-loss harvesting and optimization.
Any crypto tax software that syncs your transaction data or provides profit and loss reports with ease might be the best software investment. Still, take time to weigh the pros and cons. Look for features that suit your individual trade needs.
The Bottom Line
The increased popularity of cryptocurrency has piqued the interest of many traders and investors due to the attraction of potentially huge profits. However, trading in this digital currency means you must pay taxes.
Accurate calculation of both capital gains and capital losses is imperative to ensure that you’re paying the right amount of tax. Using the best crypto tax software solution based on your situation can ensure your taxes are accurate and will be maintained in an accessible place.