About CryptoTaxBit

CryptoTaxBit is a free, privacy-first crypto tax estimator built for freelancers, investors, and everyday crypto users in the United States, Canada, and the United Kingdom.

Why we built this

Most crypto tax tools are either oversimplified blog calculators or expensive paid software designed for accountants. There was nothing in between — no fast, accurate, no-signup estimator that handles the real cases a working freelancer or active investor runs into: staking rewards, freelance income paid in crypto, self-employment tax, capital losses, and quarterly estimated payments.

So we built it. It runs entirely in your browser, stores nothing on a server, and uses current 2026 tax-year brackets from the IRS, the CRA, and HMRC.

What CryptoTaxBit is

• A planning tool. Get a fast, realistic estimate of your crypto tax bill so you can set aside the right amount.
• An educational resource. Our blog explains how crypto is actually taxed in plain language, with worked examples.
• 100% free, forever. No paywalls, no signups, no premium tiers, no email required.
• Private by default. Your numbers never leave your device.

What CryptoTaxBit is not

• It is not a substitute for a qualified CPA, chartered accountant, or tax professional.
• It is not a filing tool — we do not submit returns or generate official tax forms.
• It is not personalized financial advice.
• It is not affiliated with the IRS, CRA, HMRC, or any cryptocurrency exchange.

Our methodology — how our numbers are researched

Every figure used in our calculator and every claim in our articles is drawn from primary tax authority sources, not secondary commentary. Our research process for each jurisdiction:

United States

• Federal capital gains brackets: IRS Revenue Procedure 2025-32 (annual inflation adjustments)
• Crypto property classification: IRS Notice 2014-21
• Per-wallet cost basis rule: IRS Revenue Procedure 2024-28 (effective January 2025)
• Form 1099-DA reporting: Treasury Regulations under the Infrastructure Investment and Jobs Act
• State tax rates: Each state revenue department's published 2026 brackets
• Self-employment tax: 15.3% combined Social Security + Medicare (IRC §1401)
• NIIT: 3.8% Net Investment Income Tax (IRC §1411)

Canada

• Capital gains treatment: CRA Income Tax Folio S3-F9-C1
• 50% inclusion rule: Income Tax Act paragraph 38(a)
• Federal brackets: CRA 2026 indexation tables
• Provincial rates: Each province's 2026 income tax schedule
• Crypto as property: CRA Guide RC4231

United Kingdom

• Capital Gains Tax rates: 18% / 24% (post-30 October 2024 Budget changes)
• Annual exempt amount: £3,000 (HMRC 2026/27 tax year)
• Section 104 pooling: Taxation of Chargeable Gains Act 1992
• HMRC Cryptoassets Manual: CRYPTO10000 onwards

Editorial standards

Every blog article we publish follows the same standards:

• Primary sources only. When we cite a tax rate, threshold, or rule, it comes from the official tax authority — not other blogs.
• Worked numerical examples. Every claim about how much tax applies is shown with a step-by-step calculation using realistic numbers.
• Year and date tagged. All articles show their last review date and the tax year they apply to.
• Honest about limitations. We mark estimates, simplifications, and edge cases clearly. We do not pretend to be a substitute for professional advice on complex situations.
• Updated on rule changes. When the IRS, CRA, or HMRC publishes updated guidance or rates, we revise affected articles and note the change.

How the numbers work

Our US calculations use the 2026 federal brackets from IRS Rev. Proc. 2025-32, plus simplified state estimates, plus 15.3% self-employment tax on freelance crypto income. Canadian calculations follow CRA 2026 indexation with the 50% capital gains inclusion rule and provincial estimates. UK figures use HMRC 2026/27 capital gains rules (18% basic / 24% higher) with the £3,000 annual allowance and income tax bands.

We update these whenever official rates change. That said, real returns include deductions, credits, and cost-basis details a simple estimator cannot fully capture — so treat outputs as planning guidance, not a filed return.

Limitations you should know about

To be transparent about what a free estimator can and cannot do:

• State and provincial estimates are simplified. Real state tax can include local surtaxes, AMT, or specific deductions we cannot model in a single tool.
• Cost basis is single-lot. If you bought crypto in many lots at different prices, your real FIFO/HIFO/ACB calculation may differ.
• Single filing status assumed. Married-filing-jointly, head of household, and separate returns can change brackets significantly.
• No automatic CPA review. Edge cases like DeFi liquidity pool income, NFT royalties, or business mining operations need professional analysis.
• Tax rules can change mid-year. We update as quickly as official guidance is released, but there can be a lag between a rule change and our reflection of it.

Who runs this

CryptoTaxBit is an independent project, not affiliated with the IRS, the CRA, HMRC, or any exchange. We are not paid by tax software companies. The site is free to use, supported in the future by ads and optional affiliate links on tool review articles (clearly marked).

We are crypto users ourselves who got frustrated with the gap between oversimplified online calculators and expensive paid software. Our goal is to give people a fast, honest, free planning tool — and to explain crypto tax rules in plain language, backed by primary sources.

Official tax authority resources

For authoritative guidance beyond our articles, refer directly to the source:

• United States: IRS Digital Asset guidance and IRS forms and instructions
• Canada: CRA crypto-asset guidance
• United Kingdom: HMRC Cryptoassets Manual

Feedback welcome

Tax rules change. Edge cases come up. If you spot a bug, a wrong figure, or have a feature request, please tell us — see the Contact page. Real user feedback is the main reason this tool keeps improving.