Crypto ETF Taxes 2025–2026

Complete guide to taxation of spot crypto ETFs (Bitcoin, Ethereum, XRP, Solana, multi-asset) in the U.S., including key changes for 2026.

Key Tax Treatment Overview (2025–2026)

Spot crypto ETFs are treated as regular securities by the IRS – much simpler than direct cryptocurrency holdings.

• No wash-sale rule – Sell at loss and repurchase immediately for tax-loss harvesting (still applies in 2026).
• No crypto-specific events – No taxable staking, airdrops, or forks unless distributed as dividends.
• Dividends – Rare in spot ETFs, but emerging staking distributions (e.g., Solana ETFs) may be treated as ordinary income starting 2026.
• New in 2026: IRS guidance clarifies that ETF share creations/redemptions do not trigger taxable events for holders.

Capital Gains Rates Comparison

Holding Period	2025 Rate (Single)	2025 Rate (MFJ)	2026 Changes (Single)	2026 Changes (MFJ)
Short-term (<1 year)	Ordinary income: 10–37%	Ordinary income: 10–37%	No change	No change
Long-term (>1 year)	0% ($0–$47,025) 15% ($47,026–$518,900) 20% (above)	0% ($0–$94,050) 15% ($94,051–$1,037,800) 20% (above)	0% ($0–$48,350) 15% ($48,351–$533,400) 20% (above)	0% ($0–$96,700) 15% ($96,701–$1,066,800) 20% (above)

2026 brackets adjusted for inflation. State taxes may apply additionally. High earners may face 3.8% NIIT.

New for 2026: Staking Distributions

Some Solana ETFs (e.g., BSOL) now distribute staking rewards as dividends. These are taxed as ordinary income in taxable accounts (10–37%). In retirement accounts, deferred or tax-free.

Best Account Types for Tax Efficiency

• Roth IRA / Roth 401(k): Best for high-growth crypto ETFs – qualified withdrawals completely tax-free.
• Traditional IRA / 401(k): Deduct contributions now, pay taxes later (ideal if expecting lower bracket in retirement).
• Taxable Brokerage: Most flexible, but full capital gains apply. Use for tax-loss harvesting.
• 2026 Update: More brokers (Fidelity, Vanguard, Schwab) allow XRP & Solana ETFs in retirement accounts.

Reporting & Record-Keeping

• Brokers issue Form 1099-B for all sales (cost basis and proceeds).
• Report gains/losses on Schedule D and Form 8949.
• Keep purchase records for accurate holding period tracking.
• 2026 Note: Enhanced 1099-B reporting for staking dividends (if applicable).

Tax-Efficient Strategies (2025–2026)

• Hold >1 year for preferential long-term rates.
• Tax-loss harvest aggressively in taxable accounts (no wash-sale rule).
• Maximize retirement account contributions for crypto ETF exposure.
• Donate appreciated ETF shares to charity (avoid capital gains, get deduction).
• New 2026: Consider Roth conversions during market dips for future tax-free growth.

Related Resources:

How to Buy Crypto ETFs Risks Guide Portfolio Allocation All Guides

This information is for educational purposes only and is not tax or financial advice. Tax laws are complex and change frequently. Consult a qualified tax professional for personalized advice based on your situation.