The 10 Best Crypto Tax Software Tools in 2024 [Free + Paid]

In 2024, digital assets and currencies continue to soar in adoption and popularity, leaving fewer and fewer of us wondering, what is cryptocurrency? That said, In 2022, only 58% of American crypto investors reported their tax returns.

As digital currencies continue gaining traction, staying on top of your tax obligations is more important than ever. That's where crypto tax software comes in, arming you with the best crypto tax calculator for your situation.

With the best cryptocurrency tax software, you can simplify the complex process of tracking and reporting cryptocurrency gains and losses, ensuring compliance and maximizing deductions. But with so many options on the market, how do you choose the best one for your needs?

We’ve researched the latest software to bring you a curated list of the best crypto tax software of 2024, featuring key attributes and ranking criteria to help guide your decision. 

Whether you're a seasoned trader or new to the crypto world, our guide will help you navigate the murky waters of cryptocurrency taxation and find the perfect crypto taxes software to keep Uncle Sam (or your country's equivalent) happy.

What Is Crypto Tax Software?

Crypto tax software is a specialized tool that simplifies tracking, calculating, and reporting cryptocurrency gains and losses for tax purposes. 

Tax regulations related to cryptocurrency vary across jurisdictions. Using crypto tax software can aid in accurate transaction reporting to avoid penalties or legal consequences. It also identifies potential deductions, optimizing your tax liability and ensuring you pay the correct amount while leveraging available tax benefits.

How Does Crypto Tax Software Work?

Crypto tax software streamlines tracking and calculating cryptocurrency gains and losses by integrating with exchanges and wallets. Here's a condensed overview of its workings.

1. Integration: Connects to exchanges and wallets using API keys or CSV files, accessing transaction data securely.
2. Data retrieval: Imports transaction history, including trades, deposits, withdrawals, and other activities.
3. Gains and losses calculation: Calculates gains and losses based on factors like acquisition costs, disposal proceeds, and holding duration, accounting for tax events like airdrops, staking rewards, and mining income.
4. Tax report generation: Generates tax reports tailored to your jurisdiction, including total gains and losses, taxable income, and necessary forms or schedules.

Crypto tax software saves time and effort by automating these processes while ensuring accuracy and compliance.

Check out this handy spreadsheet to track your crypto portfolio

How to Choose the Best Crypto Tax Software? [Ranking Criteria]

Selecting the right crypto tax software is crucial to ensure accurate and compliant tax reporting. 

When evaluating your options for the best crypto tax tracker, consider the following essential features and factors.

• Integration with exchanges and wallets: Seamless integration with popular cryptocurrency exchanges and wallets for easy access to transaction data

• Number of blockchains supported: Support for a wide range of blockchains and tokens to accommodate diverse cryptocurrency portfolios

• Supported Countries: Availability and compliance with tax regulations across multiple countries

• Tax software integration: Integration with popular tax filing software to streamline the tax preparation process

• Transaction limit: Maximum number of transactions the software can handle, catering to users with varying portfolio sizes

• DeFi/NFT support: Support for decentralized finance (DeFi) and non-fungible token (NFT) transactions and their tax implications

• Overall value: A balance of functionality and affordability, ensuring the best value for your investment in crypto tax tracking

Disclaimer: All prices shown were correct at the time of writing (April 2024) 

The Top 10 Best Crypto Tax Software in 2024

1. CoinTracker

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Why use this crypto tax software

CoinTracker is a reliable crypto tax software with over 1 million users. It offers an automated portfolio tracker, cost optimization accounting methods, and helps crypto users become fully compliant with tax rules.

Pros

• Official tax partner of Coinbase, OpenSea, TurboTax, and H&R Block
• Automated portfolio tracking with support for 500+ exchanges and 10,000+ currencies
• Specialized support for Australia, Canada, India, USA, and UK 
• Mobile app automatically syncs holdings with exchanges and crypto wallets

Cons

• Support for over 1,000 transactions is only offered in custom, individually priced plans

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2. Koinly

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Why use this crypto tax software

Koinly is a highly-rated crypto tax software that offers a free-only report of imports and provides automatic tax reports, including Form 8949s, Schedule D, and end-of-year holdings. Ideal for advanced traders, it can handle DeFi, margin trades, and future transactions. 

Pros

• Offers a free view-only report of crypto wallet imports of up to 10,000 transactions
• Includes historical pricing data from the past 6+ years
• Sleek overview of portfolio value, holdings, and performance
• Dual nationality add-on feature for multinational tax reports

Cons

• Lacks an independent tax-loss harvesting calculator
• Support response time may take over 1 business day

3. Crypto Tax Calculator

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Why use this crypto tax software

Crypto Tax Calculator stands out as the only crypto tax software built for web3, covering NFTs, DeFi, and DEX trading. With over 150,000 users, the software includes AI-powered smart suggestions, comprehensive tax reports, and accuracy in handling complex tax scenarios. 

Pros

• Comprehensive support for various chains and complex crypto activities
• AI-powered smart suggestions for accuracy
• Dedicated features for accountants
• Supports smart contracts, NFT trades, and degen transactions

Cons

•  Lacks a tax-loss harvesting calculator.

4. Accointing

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Why use this crypto tax software

Accointing by Glassnode offers a user-friendly platform with hundreds of integrations for automatic gain and loss calculations. The portfolio management tool provides valuable insights, and the Holding Period Assistant guides users on tax strategies. 

Pros

• Personalized dashboard with insightful tax strategies and graphics
• Claims to have the fastest import process on the market 
• Holding Period Assistant provides guidance on tax strategies like tax-loss harvesting

Cons

• Tax reports are in a non-standard format and have to be entered manually into other tax filing programs

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5. CoinTracking

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Why use this crypto tax software

CoinTracking is a cryptocurrency tax reporting software with over 1.3 million active users. It analyzes trades to provide real-time reports for over 100+ countries and includes advanced features such as coin charts, direct blockchain sync, and API encryption. 

Pros

• Corporate solutions for managing crypto tax data for multiple customers
• Real-time reports for over 100+ countries on profit, loss, coin value, and gains
• Extensive personal analysis with 25 customizable crypto reports

Cons

• API import is only available with paid accounts

6. Coin Panda

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Why use this crypto tax software

Coin Panda is a crypto tax software designed for both traders and accountants, enabling them to manage all clients from a single dashboard. It offers free tax report previews, portfolio tracking tools, and automatically seeks to reduce the payable taxes on transactions. 

Pros

• One of the most globally accessible crypto tax softwares, with support for 65+ countries
• Tax reports compliant with the IRS, ATO, HMRC, CRA, and more 
• Built-in tax reduction tool and support for tax professionals 

Cons

• Users have reported minor glitches with the platform's integration with certain exchanges and wallets

7. CoinLedger

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Why use this crypto tax software

CoinLedger, formerly known as CryptoTrader.Tax offers a comprehensive crypto tax reporting platform with thousands of integrations, including OpenSea for NFTs and the Polygon network, allowing users to access important transaction history through dApps. 

Pros

• API integrations with various exchanges and wallets to easily import data
• Official TurboTax partner, reports can be directly imported
• Ability to invite tax professionals to access your tax reports
• Includes portfolio tracking and tax loss harvesting

Cons

• Doesn’t accept cryptocurrency payments from customers
• Classifying transaction data can be difficult 

8. TokenTax

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Why use this crypto tax software

TokenTax provides users with a comprehensive solution for filing their taxes. It syncs with virtually every exchange, wallet, blockchain, and DeFi/NFT marketplace through manual API uploads. It features real-time tax bill previews and automatic tax form generation.

Pros

• Easy data syncing with wallet and API integrations
• Comprehensive tax reporting with real-time bill previews
• Support for DeFi and NFT transactions
• Automatic generation of every tax form needed

Cons

• No free trial or demo version available
• No mobile app 

9. ZenLedger

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Why use this crypto tax software

ZenLedger provides extensive user support, including access to licensed tax professionals. One of its best features is its comprehensive support for DeFi applications, which includes automated tracking of DeFi transactions, yield farming, and staking.

Pros

• Supports a wide range of tax forms including Schedule D, 8949, and FBAR
• Mobile app is customizable, with wash sale calculations and cost basis adjustments
• Real-time analysis of capital gains and losses

Cons

• Many advanced features, including DeFi trading are only available to Premium users
• Only available in the United States

10. KryptoSkatt

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Why use this crypto tax software

KryptoSkatt has the highest number of DeFi integrations in the industry, enabling users to manage all of their transactions from a single dashboard. You can import data automatically, generate free tax reports, and leverage built-in tax-saving techniques.

Pros

• Feature-rich mobile app
• User-friendly interface
• Customizable tax reporting options
• Dedicated DeFi and NFT dashboards

Cons

• No tax software integration
• Transaction limit is restricted

How is Cryptocurrency Taxed in Different Countries?

Cryptocurrency taxation varies across countries, with tax laws and regulations often reflecting each jurisdiction's unique approach toward digital assets. Please note that It is crucial to check with your local jurisdiction to verify the specific tax laws and regulations that apply to your situation.

Here’s a brief overview of the similarities and differences in tax laws and regulations.

Crypto tax software can help navigate varying tax laws and regulations, ensuring that you remain compliant and accurately report your cryptocurrency gains and losses, regardless of your country of residence. 

Conclusion

Failing to report your cryptocurrency activities can result in hefty fines and even legal trouble. Using the best crypto tax software, you can stay compliant and avoid any potential headaches. So, whether you're a seasoned trader or a crypto newbie, investing in good crypto tax software is a smart move for your financial future.

When choosing the best crypto tax software, it's important to consider factors such as its user-friendliness, integration with exchanges and wallets, number of supported countries, and support for DeFi and NFT transactions. 

If you’re new to crypto accounting, we’d recommend CoinTracker for its seamless integration with over 500 exchanges and wallets or Coin Tracking for its extensive coverage of over 100 countries worldwide. If you want to handle complex DeFi and NFT transactions, we recommend Crypto Tax Calculator.

Ultimately, the world of cryptocurrency is constantly evolving, and tax laws and regulations are changing just as quickly. So, take the time to choose the best crypto tax software for your needs, and enjoy the peace of mind that comes with staying on top of your crypto taxes.

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Frequently Asked Questions

1. What Is Crypto Tax Software?

Crypto tax software is a tool that automates the process of tracking and reporting taxes on cryptocurrency transactions. It can help simplify tax reporting and ensure compliance with tax laws and regulations. One of the best free crypto tax software is CoinTracker. 

2. What Is FIFO vs LIFO?

FIFO (First-In-First-Out) and LIFO (Last-In-First-Out) are two methods used to calculate gains and losses for tax purposes. FIFO assumes that the first cryptocurrency asset bought is the first one sold, while LIFO assumes the opposite.

3. Which of Your Crypto Activities Are Taxable?

Most crypto activities, such as trading, mining, staking, and receiving payments, are taxable events that may result in capital gains or losses. The tax treatment of crypto varies depending on the country and jurisdiction.

4. How Does Crypto Tax Software Work?

Crypto tax software integrates with cryptocurrency exchanges and wallets to automatically import transaction data and calculate capital gains and losses. Software such as Coin Tracking and Crypto Tax Calculator can generate tax reports and help users file taxes accurately.

5. How Do I Keep Track of Crypto Tax?

To keep track of crypto tax, users can use crypto tax software, such as Koinly, or manually track transactions using a spreadsheet or other tools. It is essential to maintain accurate records of all crypto transactions and consult with a tax professional to ensure compliance with tax laws.

6. How Will Crypto on PayPal Be Taxed?

Crypto tax on PayPal depends on the country and jurisdiction. In the US, PayPal will report cryptocurrency transactions to the IRS and send 1099-K forms to users who receive more than $20,000 in payments and complete over 200 transactions.

7. How to Avoid Paying Taxes on Crypto?

It is not recommended to avoid paying taxes on crypto as it can lead to penalties, fines, and legal consequences. However, there are legal ways to minimize taxes, such as using tax-loss harvesting and holding assets for more than a year to qualify for long-term capital gains tax rates. Crypto tax tracker tools such as Accointing and CoinLedger offer built-in tax harvesting tools to help with this process. 

8. How to File Crypto Taxes in the USA?

To file crypto taxes in the US, users must report capital gains and losses on IRS Form 8949 and Schedule D. They should also report any crypto income on Schedule 1, including mining, staking, and receiving payments. Crypto tax software like ZenLedger (which is designed specifically for investors in the United States) can complete these forms automatically. 

9. Are Crypto to Crypto Trades Taxed?

In the US, crypto-to-crypto trades are considered taxable events that may result in capital gains or losses. Users need to calculate the fair market value of the asset at the time of the trade and report it on their tax return.

10. Do I Have to Pay Tax for Transferring Crypto From Wallet to Wallet?

Transferring crypto from one wallet to another is not taxable as long as it does not involve a sale or exchange. However, users must keep track of their basis and holding period to calculate capital gains or losses when they sell or exchange the asset.

11. Is Cryptocurrency a Good Investment?

Cryptocurrency can be a good investment for those who understand its risks and potential rewards. Like any investment, doing your research, diversifying your portfolio, and consulting with a financial advisor is essential.

12. Has Anyone Become Rich From Bitcoin?

Yes, some people have become rich from Bitcoin and other cryptocurrencies. However, investing in crypto is highly speculative, and past performance is not a guarantee of future results.

13. How Is Crypto Taxed in the US?

In the US, cryptocurrency is taxed as property for federal tax purposes. This means that capital gains and losses from crypto transactions are subject to capital gains tax rates, and crypto income is taxed as ordinary income.

14. What Is the Best Way to File Crypto Taxes?

The best way to file crypto taxes depends on the user's needs and preferences. Some popular options include hiring a tax professional, manually tracking transactions using spreadsheets or using crypto tax software like KryptoSkatt to file and track transactions automatically. 

15. What Is Better Than Cointracker?

CoinTracker is the official tax partner of Coinbase, OpenSea, TurboTax, and H&R Block and one of the best Bitcoin tax software. Other options like Koinly and TokenTax offer similar services and may be better suited for some users' needs. Ultimately, users should compare each option's features, pricing, and user reviews to find the best fit for them.

16. Can I Trust Cointracker?

CoinTracker is a reputable crypto tax software provider that has been in the market for several years. The company is backed by notable investors and has received positive reviews from users and industry experts.

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