7+ Best Crypto Tax Software of 2023 (Ultimate Guide)
Choosing the right crypto tax software is crucial if you want to ensure that you’re compliant with the law. From end-of-year tax reports to tracking your gains and losses, the best crypto tax software can help you meet your goals. In this guide, I ranked and reviewed the 7+ best crypto tax software, so that you can pick the best one for you.
Koinly
Koinly integrates with more than 300 exchanges, determines your cryptocurrency taxes and assists you in lowering them for the coming year.
Cryptotrader.Tax
CryptoTrader.Tax allows you to finalize your taxes in minutes by importing your trading history into the software.
ZenLedger
ZenLedger offers users simple answers to complex accounting and legal issues involved in cryptocurrency transactions.
TokenTax
TokenTax is a cryptocurrency payment processor, tax software provider, and full-service cryptocurrency accounting firm.
TaxBit
TaxBit bridges the gap between users and tax authorities by offering easy-to-use software solutions for filing taxes.
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Want to cut right to the case? The best crypto tax software right now are Koinly and Cryptotrader.tax.
Buying cryptocurrencies is one of the most talked-about events in this day and age. Many people are looking at this as an opportunity to use crypto exchanges to either cash in on bearish or bullish market movements or to hold on to their crypto investments long-term.
This made the need for crypto tax software a reality. Since governments worldwide have begun to take notice of the crypto market, cryptocurrencies are being considered as assets and thus get taxed. In fact, as of 2023, mandatory crypto tax reporting will come into full effect.
With so much going on in the crypto world, it is often hard to keep track of new things related to taxation. While a crypto portfolio tracker does help, keeping a tab on all cryptocurrency transactions can be difficult, especially if you also use bitcoin mining software.
For all these reasons, I’ve gone out and researched the best crypto tax software in the market. In this article, I will list down the best software available for you to use to make the process of crypto tax returns as straightforward as possible.
Let’s get right into it.
What is the Best Crypto Tax Software?
The following crypto tax software are some of the best solutions to your crypto tax returns right now.
1. Koinly.
Best for offering free and fast crypto tax reports.
Adam’s Take
Koinly is my #1 choice for cryptocurrency tax software because it’s simply the easiest to use. The user interface is very straightforward, and importing your data is a breeze. They also offer hundreds of integrations with popular exchanges, making it one of the most comprehensive solutions on the market.
Koinly determines your cryptocurrency taxes and assists you in lowering them for the coming year. Offering reliable & straightforward import mechanisms and a wide range of support, Koinly guarantees that your taxes will get done correctly.
You will appreciate their accounting services if you’ve ever traded crypto with no records. Whether you are importing ETH, Tezos, BTC, or any other altcoin, Koinly will automatically import your data and save you time.
Manage all of your crypto transactions from one place and view your portfolio allocation at a glance, as well as up-to-date prices for each transaction.
With both API and CSV imports available, Koinly is a versatile tool you can use with any exchange or online wallet.
Koinly integrates with more than 300 exchanges making it a comprehensive option for your tax needs.
Key Features:
- Whether you’re filing yourself or using tax software like TurboTax, Koinly can create the appropriate crypto tax reports for you. Koinly can also produce the required crypto tax reports for both self-filing and working with an accountant.
- Koinly monitors your transaction history to track how much you’ve spent and determine whether any transactions are fraudulent. It does so by utilizing artificial intelligence (AI), which means you’ll be notified immediately if anything gets flagged.
- Get a look at how much money you made or lost for any tax year, allowing you to see your portfolio’s performance at a glance.
Pricing:
Koinly is free software that doesn’t require a credit card to get started.
Get started with Koinly.
2. Cryptotrader.Tax.
Best for flexibility when importing crypto tax reports
Adam’s Take
Cryptotrader.Tax is best for quickly and easily calculating cryptocurrency taxes in an easy-to-use format. Use your trading history to calculate your realized and unrealized gains and track your cost basis – all through this software.
CryptoTrader.Tax allows you to finalize your taxes in minutes by importing your trading history into the software.
No matter what currency your cryptocurrency is and how much it’s worth, you can generate reports on its profit, loss, and revenue.
You can share reports with various versions of this software, including:
- TurboTax Online.
- TurboTax Desktop
- TaxAct.
This all means that you have a wide range of options for importing your trading history.
If you’re looking to calculate your crypto taxes in the best way possible, then Cryptotrader.Tax is one software to consider.
Key Features:
- There are over 100 different exchanges that CryptoTax supports, which means that you’ll have no problem importing your trading history into the software.
- You can import both CSV files and API files, making CryptoTax a versatile tax software.
- No obligations due to a free 14-day trial where you can test out the software.
- Instant tax forms provide you with your tax report right away.
- As soon as you submit your crypto reports, CryptoTrader.Tax will compute the cost basis and fair market value for these deals.
- If you have crypto gifts, mining income, exchange airdrops, and other types of transactions, you can easily add them to your report.
Pricing:
There are four pricing plans available on Cryptotrader.tax:
- Hobbyist: $49
- Day Trader: $99
- High Volume: $199
- Unlimited: $299
Get started with Cryptotrader.Tax.
3. ZenLedger.
Best for simplifying a complex tax process.
Adam’s Take
I like ZenLedger as it provides simplicity in a space that is often needlessly complicated. Crypto taxes are no joke, and if you don’t stay on top of them, you can face some severe penalties – ZenLedger can help you avoid that.
ZenLedger offers users simple answers to complex accounting and legal issues involved in cryptocurrency transactions. The platform provides one-click integrations for exchanges and wallet providers, allowing you to stay within the ZenLedger ecosystem to get all the work done.
With their cryptocurrency tax software, you may keep track of your transactions, assess your profits, and never pay extra when you file your taxes.
ZenLedger is continuously adding new integrations to their crypto tax tool because they believe in being the most thorough and complete service on the market. This flexibility gives you the freedom to choose any exchange or wallet provider so you can control your tax responsibilities.
Key Features:
- Offering some of the most competitive pricing in the market, ZenLedger even includes a free tier, along with necessary software updates.
- You can connect to any exchange or wallet provider of your choice, making it simple and easy to use the software you are comfortable with.
- Seven days a week, including evenings and weekends, you can contact their customer care staff by chat, email, or phone, meaning that they will solve any questions or problems you have as soon as possible.
- Your data is safe and secure with them, as they use the latest security technologies to protect your privacy.
- Uploading ZenLedger’s crypto tax tool transactions to TurboTax will take only a few minutes.
Pricing:
With their free plan offering up to 25 transactions for free, their paid plans are as follows:
- Starter: $49 per year
- Premium: $149 per year
- Executive: $399 per year
- Platinum: $999 per year
Get started with ZenLedger.
4. TokenTax.
Best for having the ability to connect to all cryptocurrency exchanges.
Adam’s Take
TokenTax provides a one-stop solution for cryptocurrency taxes. They offer a suite of tools to make cryptocurrency taxation easy, along with an accounting firm that will take care of all the paperwork for you.
TokenTax is a cryptocurrency payment processor, tax software provider, and full-service cryptocurrency accounting firm specializing in the sale of tokens. They offer a suite of software products and services that automate the entire process of tracking, calculating, and reporting cryptocurrency taxes.
TokenTax is the only crypto tax calculator that communicates with every cryptocurrency exchange. They’ll import and reconcile your data from anywhere, regardless of its source, making it an efficient and accurate solution for calculating your cryptocurrency capital gains.
Track your capital gains, losses, and tax obligation for every cryptocurrency transaction with ease. All this helps you save time and money regarding your crypto taxes.
Key Features:
- TurboTax automatically fills out Form 8949 based on your crypto trading history, making it easy to file your crypto taxes.
- They offer a full-service solution for companies that don’t have the resources to deal with complicated tax regulations.
- They handle all elements of digital asset taxes, from capital gains calculation to automated tax form creation, on their custom-built platform.
- With automatic API import, you may connect some of the best crypto exchanges like Coinbase, Binance, and BitMEX with a single click. You may also provide a trade history CSV files from any exchange with one click.
Pricing:
When using TokenTax, there is a pricing plan for everyone. Whether you are an investor who deals in crypto every so often or someone who has made a full-time living off trading cryptocurrencies, their plans offer the right features for your needs.
The plans are as follows:
- Basic: $65 every tax year
- Premium: $199 every tax year
- Pro: $799 every tax year
- VIP: $3499 every tax year.
Get started with TokenTax.
5. TaxBit.
Best for having the best real-time view of your crypto transactions.
Adam’s Take
I advise you to check out TaxBit if you’re in the market for a comprehensive crypto tax software solution that makes filing taxes easy. Gone are the days when complex tax filing software was only accessible to accountants and tax professionals. TaxBit has a user-friendly interface that makes it easy for anyone to use.
TaxBit bridges the gap between users and tax authorities by offering easy-to-use software solutions for filing taxes. With TaxBit, you can securely file your crypto taxes without having to worry about any mistakes that could lead to penalties.
TaxBit’s cryptocurrency tax software unifies the process for everyone involved. Whether you’re a platform that needs to issue 1099s or a user who has to file their taxes, there’s a feature for you.
This allows for a much more streamlined process and eliminates any confusion that could arise from using different software for different parts of the tax process.
It’s simple to integrate APIs into your site to automatically collect and import your data. This integration means faster filings, and it also means less work for you and your company.
You’ll see the real-time tax effect of your transactions across any exchange you trade on when using TaxBit Consumer. This is an additional feature that is available for enterprise companies.
Key Features:
- Many of the industry’s most reliable exchanges have partnered with and are serviced by TaxBit, which means that the software will import your transaction data faster and more reliably than any other tax software solution.
- The API is compatible with most exchanges so that you can utilize one API for all of your cryptocurrency tax needs.
- When you use their software, you’ll be able to see a real-time representation of your transactions across several platforms, saving you time and minimizing the chances of making mistakes.
- Being SOC 2 certified by independent auditors with a wide range of experiences means that your data is safe and secure.
Pricing:
With a free trial included with all their plans, Taxbit’s pricing is as follows:
- Basic: $50 per year for 250 transactions
- Plus: $175 per year for 2500 transactions
- Pro: $500 per year for 25000 transactions
6. Cointracker.
Best for providing the right advice after serving more than half a million clients.
Cointracker allows you to use the tax code to make adjustments in your cost basis and optimize your cost basis accounting methods. In simple terms, this means that you’ll be able to increase your profits substantially in the long run.
Having better visibility into your tax lots allows you to make more informed trades. With Cointracker, you can use all of the data they provide to minimize your tax liability.
They offer a wide range of support so that you can always get help when you need it. You can contact them by email or phone and receive a response within minutes.
Cointracker gives you the ability to see how your market value, investment performance, and portfolio allocation have changed in real-time. All of this information is updated as it happens, allowing you to make the most informed decisions.
Use their powerful template to manage your crypto services and make them searchable and filterable so that you may find and focus on what’s important.
With support for more than 300 exchanges & more than eight thousand cryptocurrencies, you’ll be able to track all of your data in one place.
Key Features:
- Connect exchanges and wallets to import your data into Cointracker automatically.
- Combine all of your trades into one or more tax lots depending on the tax code. This saves you time by making it unnecessary to track each transaction separately.
- Review transactions in a calendar format, making it easy to find specific transactions.
- See your portfolio breakdown by coin for any period, making it viewable using different currencies for each asset.
- Users may keep track of their portfolio and cryptocurrency prices using the accompanying mobile app.
Pricing:
Cointracker has a basic package that is always free and supports up to 25 transactions. After that, their pricing is as follows:
- Hobbyist: $53
- Premium: $179
- Unlimited: Priced individually based on your specific needs
All of these packages come with a 30-day money-back guarantee.
7. Crypto.io.
Best for offering the right integrations to track your investments.
Crypto.io provides stability when dealing with the cryptocurrency market. They have many features to help you manage your different crypto portfolios and investments.
Defi, various exchanges, and institutional custody solutions are supported, making it an excellent choice for more prominent investors.
Tracking your crypto assets and the number of transactions through various integrations is a breeze, and they allow you to construct a complete picture of your assets without any fuss.
From exchanges to custody companies and wallets, automated accounting of digital assets is maintained using an algorithm that calculates losses and gains.
Key Features:
- Seamlessly integrates with other accounting systems, including Xero, Quickbooks, etc.
- You can track realized and unrealized losses and gains using cost basis data and actual market rates.
- To fulfill accounting and audit obligations, you may export the right data and create custom reports as you see fit.
- Unlimited blockchain transactions, wallets, exchanges, and custodians may be linked.
- Track and reconcile your Defi activity, including swaps, borrowing, lending, and liquidity margins.
Pricing:
With four plans available featuring both monthly and annual billing, you can find the perfect Crypto plan for your needs. Their plans are as follows:
- Starter: $39 per month.
- Pro: $89 per month.
- Premium: $249 per month.
- Enterprise: Contact their sales team for a custom quote.
All their plans offer a 14-day free trial.
8. Accointing.
Best for only paying for the amount of taxable transactions generated.
Accointing is easy-to-use accounting software that allows you to keep track of your portfolio and submit crypto taxes on your own.
Their CPA experts and crypto tax advisers will also enable you to save a lot of money when filing your taxes by avoiding any critical tax mistakes.
Use your dashboard to track the performance of your crypto; this dashboard is available in both mobile and desktop versions. Explore all of your transactions in real-time with a great user experience to keep you on track.
In just five clicks, you can generate your first report so that you can send your crypto taxes to the IRS. You can even export all events into Excel or CSV for a quick review, allowing you to keep all of your data in a single location.
Key Features:
- You may finish all of your crypto taxes in a few minutes without dealing with complicated calculations and tax forms.
- All transactions are logged in real-time and automatically tagged according to rules that you define, so finding your data becomes quick and easy.
- Keep track of all your transactions with simple, high-quality charts for an excellent analysis experience.
- Examine all of your tax-related documents to see what might be beneficial and what can be improved.
- Generate a complete set CSV export so you can share your crypto taxes with third-party software as needed.
Pricing:
With the software being free when filing up to 25 taxable transactions, their paid plans are as follows:
- Hobbyist: File up to 500 taxable transactions – $79
- Trader: File up to 5,000 taxable transactions – $199
- Pro: File up to 50,000 taxable transactions – $299
Other crypto tax software not mentioned in this post include Cryptotrader.tax, TaxAct, and Beartax.
What is Crypto Tax Software?
A cryptocurrency tax software is a digital tool that assists individuals and businesses in calculating taxes owed on cryptocurrency investments and transactions.
The software can import data from exchanges and wallets, track the cost basis of coins, and generate tax reports.
The use of cryptocurrency tax software has become increasingly popular as the value of digital currencies has increased. To ensure that they are paying the correct amount of taxes, many people use these tools to help them stay organized and file correctly.
Creating tax documents and reports by hand is time-consuming, which is why more people are using crypto tax software.
Several different cryptocurrency tax software options are available, each with its own features. This means that it is essential to choose one that will meet your needs and make filing taxes easier.
Why Use Cryptocurrency Tax Software?
There are several reasons why you should use cryptocurrency tax software. Let’s explore some of the most important ones.
It helps ensure that you pay taxes in the right amount.
Creating the right tax report is essential to avoid penalties from the IRS. Cryptocurrency tax software can automate much of the process, making it easier for you to file your taxes correctly.
As a result, crypto trades taxed correctly make the process easier for everyone involved.
It can help you stay organized.
Keeping track of all your cryptocurrency transactions can be difficult, especially if you have an extensive portfolio. Cryptocurrency tax software can make the process easier by importing data from exchanges and wallets and tracking your cost.
This will allow you to see a breakdown of your portfolio by coin and how it has performed over time.
Tax professionals are often needed to use advanced cryptocurrency tax software due to the complexity of the process. However, there are now tools designed for non-professionals, making it easier for you to file your taxes correctly.
It makes filing taxes easier.
Handling your taxes can be time-consuming and confusing, especially if you are new to cryptocurrencies.
Cryptocurrency tax software can take care of much of the work for you, including importing data, tracking cost basis, and creating tax reports. This can save you time and stress during the tax-filing process.
The software is specifically designed for cryptocurrency users, ensuring it will meet all of your needs.
With tax reporting for crypto being a relatively new issue, most tax software providers have created products specifically for this niche. These tools can be tailored to meet your needs and may help you get additional deductions or save on your taxes if you qualify for them.
Without using these tools, some of these deductions wouldn’t be obvious, and you might end up losing out and paying more taxes.
What to Look For When Choosing Crypto Tax Software
The first step in choosing crypto tax software is deciding what features you need. Here are some factors to consider when making this decision.
Exchange Support
Most exchanges do not report transactions directly to the IRS, so many people need to fill out Form 8949 for each trade they make.
If you have traded on multiple exchanges, you will want to look for software that automatically imports this data. Tax attorneys themselves sometimes recommend using software that can import this data to simplify the process.
Frequency of Use
Cryptocurrency tax software is designed for short-term and long-term use, but you should also consider how often you plan to file taxes. If you are filing taxes regularly, choosing a tool with all the features you need may make sense.
On the other hand, if you anticipate not filing taxes for several periods, you may not need all the bells and whistles right away.
Price
Cryptocurrency tax software can vary widely in price, which is why it is vital to research before choosing one. While some paid tools offer free trials or basic versions, others consist of much more and can cost hundreds of dollars.
Understanding what price tag fits your budget is important when choosing the right software for you.
Coin Tracking
Different types of coins may be subject to different tax rules, so it is best if your software can track specific types of cryptocurrency transactions and calculate the cost basis appropriately.
Some software providers have created tools specifically for certain types of coins, while others use more general investment apps to track coins. Check the respective product descriptions to see which cryptocurrencies each tool supports.
Data Importing
It is crucial that your crypto tax tool can quickly and accurately import data from various sources, including wallets and exchanges. This will help ensure that your records are correct and up-to-date.
Some programs require more manual input than others, which would be less efficient depending on how many transactions you’ve made over the year.
Most of the software will offer you the ability to import data from your exchanges. However, this is not uniform across all software. Some programs require manual input, which could be time-consuming.
Automatic and Secure Backup
Since tax-related documentation can be pretty sensitive, your crypto tax software must have a secure backup system to ensure you do not lose any of your records if something happens to your computer.
The final word on required features
The final consideration when choosing crypto tax software is your own needs. Some tools designed for professional use may be more than you need, while others targeted at non-professionals do not offer all the features you require.
By carefully considering each factor and comparing your options, choosing a tool to meet your needs should be possible.
Whether you are dealing with Bitcoin, Ethereum, Litecoin, or any other cryptocurrency, it is essential to stay aware of the tax implications. By choosing the right crypto tax software, you can make this process much easier and less time-consuming.
Other factors to consider
When it comes to tax reporting in crypto, there are some other factors that you should consider. Here are these factors in no particular order.
Tax loss harvesting
This is a popular technique used to reduce the amount of taxable income. When done correctly, it can save taxpayers money on their taxes.
However, tax loss harvesting is a complex process that requires careful record-keeping. Fortunately, many of the best crypto tax software tools offer features specifically for tax-loss harvesting.
Crypto to FIAT Conversions
If you have converted any of your cryptocurrency into fiat currency, you will need to report this on your taxes.
Some software providers can automatically track these conversions, making the process much easier. However, if your tool does not support this feature, you must do this yourself and include such transactions in your calculations.
Income Tax
The crypto you have earned from mining, airdrops, and faucets needs to be included on your tax return when tax season comes around. Depending on the amount of money you make with crypto during the year, this could play a significant role in your taxes.
The country where you pay tax (whether it is the U.S., Australia, Canada, or any other country) may have specific rules about reporting crypto income. Make sure you are familiar with the regulations in your country so that you can file an accurate return.
Staking Rewards
Some cryptocurrencies require users to stake their coins to participate in the network. The returns from this process are similar to those from a Proof of Stake mining reward, so these should also be included as taxable income.
Depending on which tool you use, there may be features that will help you track and record staking rewards.
Crypto donations
If you have donated any cryptocurrency to a charity or other nonprofit organization, you will need to report this on your taxes.
The good news is that many of the best crypto tax software tools also include a feature specifically for tracking donations. This makes the process much simpler and less time-consuming.
Margin trading
If you have been using margin trading on an exchange, you need to know that the IRS regards it as a form of income. This results in added bitcoin taxes based on most countries’ current income tax rates.
Consequently, if you earn additional money by taking up margin trades, you will need to factor in these expenses when calculating your total income.
Calculating capital crypto gains/losses
You might not fully realize it, but you purchase an asset that can go up or down in value when you buy crypto. As such, the IRS provides guidelines on calculating your capital gains and capital losses over time.
If you have failed to report these correctly, you may end up facing an audit and may even be fined or penalized.
However, this process becomes much more manageable if you keep track of your transactions and include the capital gains tax on each transaction as part of your taxable income.
For most people, it is more logical to use a tax software program that can automatically track every detail for you.
Trading/dealing fees
If you have made any trades or purchased cryptocurrency at a premium, you will need to report this when you file your taxes. The best crypto tax tools should include features for tracking these transactions to simplify the process.
Cryptocurrency gifts
If someone has gifted you cryptocurrency, it is essential to remember that this gift counts as income in some situations and must be reported on your taxes. While many software providers offer features for tracking gift transactions, others do not.
Therefore, it is essential to carefully review each product before making a final decision.
Price fluctuation
The cryptocurrency price can be pretty volatile, so the value of your holdings could rise or fall over time. You must track each transaction closely to ensure that any gains are correctly reported on your tax return.
However, most tools will include features for monitoring these types of transactions and make them much more manageable.
Exchange accounts
Some of the best crypto tax software providers will allow you to import your transactions from multiple crypto exchanges. This feature can be a huge time saver when compared to manually having to add hundreds of trades.
In many cases, you can simply log in to each exchange account and have all the data imported automatically for easy reconciliation.
Ease of use
When choosing a system to use, ensure that it is user-friendly and easy to navigate. This will help ensure that you do not miss any critical transactions, resulting in problems when dealing with a taxable event or an audit.
The right tax platform will present the correct IRS form that needs to be filed and all the data required to complete the form accurately.
Cryptocurrency trading is becoming much more popular, but your activity and taxable events must be tracked and reported correctly. Choosing an easy-to-use crypto tax software tool can make this process a lot simpler.
Ease of use is something to consider in any type of investment you make. Whether you are dealing with crypto, investing in gold IRA, or going for a real estate commercial loan, navigating the interface that you’re provided with should never be something that takes a long time to figure out.
Wrap Up.
Choosing the best crypto tax filing software can be a complex process. As time goes by, many new tools are introduced, and it can be hard to decide which one is right for you. By considering each of the above factors carefully, you should be able to find a tool that meets your needs.
To summarize, the best crypto tax software in the market right now are:
- Koinly: Best for offering free and fast crypto tax reports.
- Cryptotrader.Tax: Best for flexibility when importing crypto tax reports
- ZenLedger: Best for simplifying a complex tax process.
What do you think? Have you used another crypto tax filing software that deserves a mention in this article? Feel free to share your personal opinion and suggestions in the comment section below.
Further reading on AdamEnfroy.com: If you want to learn more about the features to look for when buying and selling crypto, here’s a direct comparison between Binance vs. Coinbase, two of the biggest exchanges available. In addition, check out my selected list of NFT marketplaces if you’d like to branch out further with this type of investment.
