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Five best crypto tax software tools available on the market

Looking for the best crypto tax software to simplify your tax filing? This article will help you find the best tools for that process.

Cryptocurrencies have disrupted traditional financial systems and have quickly become a popular investment option for many individuals. However, with the rise of this decentralized digital currencie, comes the complicated task of filing taxes.

The Internal Revenue Service (IRS) and other tax authorities have started to scrutinize the taxation of transactions involving cryptocurrency, and it’s important for investors to ensure they comply with the laws. This is where crypto tax software comes in handy.

1. Understanding crypto taxes

Before diving into the different options for crypto tax software, it is essential to understand how cryptocurrency is taxed. The IRS considers cryptocurrency as property, which means that any gains from the sale or exchange of the digital asset are taxable.

Also read: What’s the difference between fiat currencies and cryptocurrencies?

The tax rate varies from country to country. Cryptocurrencies have become a popular investment option in recent years due to its potential for high returns. However, investors also need to understand how it is taxed. The IRS has been cracking down on cryptocurrency taxes in recent years, and it’s essential to stay on top of your tax obligations as a crypto investor.

1.1 How crypto is taxed

The tax rate on cryptocurrency gains goes up to 37%, depending on the income level and holding period, which could be short-term (less than a year) or long-term (more than a year). Short-term gains are taxed at the investor’s ordinary income tax rate, while long-term gains are taxed at a lower capital gains tax rate.

It’s important to note that cryptocurrency losses can also be used to offset gains. If an investor has a net loss from cryptocurrency sales, they can deduct up to $3,000 of those losses against their ordinary income. Any remaining losses can be carried forward to future tax years.

1.2 Tax implications of trading and mining

Trading cryptocurrencies or mining them can also impact the investor’s tax liability. For instance, if an investor mines crypto as a business, the mined coins are recognized as income, and the fair market value of the coins on the date received is considered for tax purposes.

Trading cryptocurrencies involves buying and selling them frequently, and each transaction is taxable. It’s essential to keep track of all transactions made throughout the year to determine the tax liability accurately. This can be a daunting task, especially for those who trade frequently or across multiple exchanges.

Related article: What is the difference between cryptocurrency mining and staking?

Fortunately, there are several crypto tax software options available to help investors stay on top of their tax obligations. These software programs can automatically import transaction data from various exchanges and generate tax reports. Some popular options include CoinTracking, CryptoTrader.Tax, and TaxBit.

Investors should also consult with a tax professional to ensure they are properly reporting their cryptocurrency gains and losses. With the IRS increasing its focus on cryptocurrency taxes, it’s better to be safe than sorry.

2. Top crypto tax software options

Keeping track of all cryptocurrency transactions for tax purposes can be time-consuming and complicated. Luckily, there are numerous software options available to help investors simplify the process. Here are the top five.

2.1 Koinly

Koinly is a web-based tax software that provides an easy and straightforward way to track cryptocurrency transactions. It automatically imports transaction history from exchanges or wallets, calculates gains/losses, and generates tax reports for all types of cryptocurrency transactions. Koinly supports tons of cryptocurrencies and crypto exchanges.

Some of the fantastic features of Koinly is its user-friendly interface. The software is designed to be intuitive and easy to navigate, even for users who are new to cryptocurrency taxes. Additionally, Koinly offers a variety of different pricing plans, but there’s also a free plan!

2.2 CoinTracker

CoinTracker is another popular tax software that provides an all-in-one solution for tracking cryptocurrency transactions and generating tax reports. It uses API and CSV imports to track transactions and supports all major exchanges and wallets. CoinTracker also offers custom tax optimization strategies for maximal tax savings.

One of the unique features of CoinTracker is that it can track non-fungible tokens (NFTs) alongside cryptocurrency holdings. This makes it a great option for investors who have diversified portfolios. Additionally, CoinTracker offers a mobile app that allows users to track their transactions on-the-go and it is trusted by over a million people.

2.3 CoinLedger

CoinLedger is another tax software that simplifies crypto tax reporting for users. It auto-imports transaction history and generates various tax reports that can be exported in a required tax format. In addition, CoinLedger provides a great user experience that makes it easy to use even for individuals who are new to taxes.

Read more: Survey finds half of Millennials in developed countries own crypto

Some of the amazing features of CoinLedger is that it can finish complex tax situations, such as margin trading or staking rewards. The software is designed to handle these situations automatically, so users don’t have to worry about calculating them manually. People can start using it for free.

2.4 ZenLedger

ZenLedger is a tax software that makes cryptocurrency tax reporting a seamless experience. It imports transaction history from exchanges and wallets and generates relevant tax reports. ZenLedger supports over 400 exchanges 100+ DeFi protocols, and 10+ NFT platforms, meaning that it’s highly likely to have the cryptocurrency you need.

One of the standout features of ZenLedger is that it can handle tax reporting for multiple years. This makes it a great option for users who have been investing in cryptocurrency for several years and need to file multiple years’ worth of tax reports.

2.5 TokenTax

TokenTax is a tax software with a lot of features that makes it a good option for users that hold a high number of cryptocurrencies. It is the last piece on this list of crypto tax tools. It can import transactions from numerous exchanges, generate various tax reports, and supports other types of tax, such as airdrops or hard forks.

One of the great features of TokenTax is its ability to handle tax reporting for international users. The software is designed to handle tax reporting for users in over 30 countries, making it a great option for users who live outside of the United States.

3. Features to consider when choosing crypto tax software

While each crypto tax software comes with different features, here are the essential features to pay attention to when selecting a crypto tax software for your needs.

3.1 Ease of use

First and foremost, the crypto tax software of your choice should be user-friendly, easy to navigate, and have an intuitive interface. It should make tax preparation easy and understandable for individuals of any skill level.

Some crypto tax software providers offer a step-by-step guide to help users through the tax filing process. This feature is especially useful for beginners who may not be familiar with the tax laws and regulations surrounding cryptocurrency.

3.2 Integration with exchanges and wallets

A good crypto tax software should integrate with as many exchanges and crypto wallets as possible to ensure that all transactions from a user’s wallets and exchanges are considered. This feature saves time and ensures accuracy during the reporting process.

Also read: Best crypto wallets

However, it’s important to note that not all exchanges and wallets are supported by all crypto tax software providers. Before selecting a crypto tax software, ensure that it supports the exchanges and wallets that you use.

3.3 Tax report customization

A versatile crypto tax software platform should offer customized tax reports that can be adjusted to a user’s needs. It should also be able to handle all types of cryptocurrency transactions, such as staking.

Some crypto tax software providers offer a variety of tax reports, including capital gains reports, income reports, and transaction history reports. These reports can be customized to include specific time periods, currencies, and transactions.

3.4 Pricing and plans

The cost of crypto tax software varies depending on the solution and features it offers. It’s essential to study different pricing plans to find the one that best fits your budget and needs.

Most crypto tax software providers offer a free version with limited features, while others offer more comprehensive plans for a fee. Consider your needs and budget before selecting a plan. Most plans, if paid, don’t cost more than $100 or $150.

3.5 Customer support

Lastly, crypto tax software providers should have reliable customer support to help users with any problem they might have. This can be through an online ticket system, email, chat or through phone calls in some cases.

Before selecting a crypto tax software, research the provider’s customer support options and read reviews from other users to ensure that the support is reliable and helpful. By considering these essential features, you can select a crypto tax software that meets your needs and simplifies the tax filing process for your cryptocurrency transactions.


The tax implications of cryptocurrency ownership can be heavy to tax records. However, with the right crypto tax software, taxpayers can simplify the task of tracking their crypto transaction history.

The top crypto tax software options mentioned above support numerous exchanges and wallets, automatically track transactions, and generate reports to prepare for tax returns. Users should consider their specific needs, cost, and the features that matter most before choosing the perfect crypto tax software option.

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...


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