The NFT Academy

Free tool

Crypto tax estimator

A rough capital-gains estimate on a single disposal, including acquisition and disposal costs, and the difference holding for more than a year makes. Simplified US model — an estimate, not advice.

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The disposal

$

In dollars, at the time you bought.

$

Gas and marketplace fees on the purchase.

$

In dollars, at the time you sold.

$

Gas, marketplace fee, royalty paid.

The single biggest lever on the number below.

The IRS has signalled some NFTs may be collectibles. This is unsettled — ask a professional.

Estimated position

Capital gain$1,265.00
Adjusted cost basisPurchase price plus acquisition fees$1,240.00
Net proceedsSale price minus disposal fees$2,505.00
Rate applied15%
Estimated tax$189.75
You keep$1,075.25

This is not tax advice. It is a rough arithmetic estimate using a simplified US model, and it ignores state tax, wash-sale treatment, gifting, staking or airdrop income, and every non-US regime. Tax treatment of digital assets is unsettled and changes. Speak to a qualified professional before filing.

Read this before you trust the number

This is arithmetic, not advice. It uses a deliberately simplified model of US federal capital gains tax, and it ignores a great deal that may apply to you: state tax, wash-sale treatment, gifts and donations, income from staking or airdrops, business versus investment characterisation, and every non-US regime. If the sums involved matter to you, this tool is a way to understand the shape of the question — not a substitute for a professional.

The three inputs that determine everything

Cost basis

What you paid, plus what it cost you to acquire. Gas on the purchase and the marketplace fee both increase your basis, which reduces your taxable gain. People routinely forget these and overstate their gain as a result.

Proceeds

What you received, minus what it cost you to sell. Gas, the marketplace fee and any royalty you paid all reduce proceeds. Note that proceeds are measured in your local currency at the moment of the transaction — if you were paid in ETH, the relevant number is the dollar value of that ETH on that date, not what it is worth now.

Holding period

The largest single lever. In the US, crossing the one-year mark moves you from ordinary income rates to long-term capital gains rates. On a $10,000 gain for someone in the 24% bracket, that is the difference between roughly $2,400 and roughly $1,500. Nothing else in this calculation is worth as much as waiting, where waiting is an option.

The trap nobody expects: paying in crypto

If you bought an NFT using ETH you had held for a while, you may have triggered a taxable event on the ETH at the moment you spent it — because spending an appreciated asset is a disposal of that asset. You can therefore owe tax on a purchase, in a year in which you received no cash at all. This catches people out constantly, and it is one of the strongest arguments for keeping proper records from the first transaction rather than the first sale.

Keep records from day one

For every transaction, record: the date, what you acquired or disposed of, the amount, the local-currency value at that moment, the transaction hash, and the fees. A block explorer keeps the chain data forever, but it does not know what ETH was worth on the day — and reconstructing historic prices across dozens of transactions is the part that takes a weekend you did not plan for.

Common questions

Is selling an NFT a taxable event?
In most jurisdictions, yes. Selling, swapping or otherwise disposing of an NFT typically realises a capital gain or loss, measured against what you paid. Buying one with cryptocurrency can also be taxable on the crypto you spent, because that is itself a disposal of the crypto.
What counts towards my cost basis?
What you paid for the asset, plus the costs of acquiring it — gas and marketplace fees on the purchase. Costs of disposal reduce your proceeds. Keeping records of both is the single most valuable thing you can do; reconstructing them a year later from a block explorer is painful.
What is the difference between short-term and long-term?
In the US, holding for more than a year moves the gain from ordinary income rates (up to 37%) to long-term capital gains rates (0%, 15% or 20%). On a large gain this is the single biggest lever available, and it is entirely a function of timing.
Are NFTs taxed as collectibles?
Possibly. The IRS has indicated some NFTs may be treated as collectibles, which caps the long-term rate at 28% rather than 20%. It depends on what the token actually represents, and the position is not fully settled. If a material amount is involved, take it to a professional.
What if my NFT is now worth nothing?
An unrealised loss is not deductible. You generally need to dispose of the asset to realise the loss — and with an illiquid NFT that can be genuinely difficult, because there may be no buyer at any price. This is a well-known and unpleasant corner of the subject.