7.2[Tax & Legal Considerations](https://wealtii.com/learn) # Crypto Tax by Country: UK, US, Germany, Australia & More By [Zayd Ahmed](https://wealtii.com/editorial-policy#zayd-ahmed), Founder & CEO, Wealtii · Published 12 February 2026 · Last reviewed 21 October 2026 **Crypto tax rules differ sharply by country.** The UK charges capital gains tax at 18% or 24% above a £3,000 allowance, the US taxes long-term gains at up to 20%, and Germany exempts gains on crypto held for more than a year. Singapore and the UAE generally do not tax individuals' capital gains (rules as of October 2026). ## How do crypto tax rates compare by country? | Country | Rate on gains | Exemption or allowance | Notable rules | Official source | | --- | --- | --- | --- | --- | | United Kingdom | 18% within the basic-rate band, 24% above it | £3,000 annual exempt amount (2026/27) | Same-day and 30-day matching rules, then a Section 104 pool; staking and mining rewards are income | [HMRC](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22200) | | United States | Long-term: 0%, 15% or 20% (plus 3.8% NIIT on higher incomes); short-term: 10% to 37% | No allowance; 0% long-term rate up to $49,450 taxable income (single, 2026) | Digital assets are property; Form 1099-DA broker reporting; wash-sale rule not yet applied to non-security crypto | [IRS](https://www.irs.gov/filing/digital-assets) | | Germany | Personal income tax rate if sold within one year | Tax-free after more than one year; €1,000 exemption limit for short-term gains (from 2024) | Staking or lending does not extend the holding period to ten years; staking rewards are other income | [EStG §23](https://www.gesetze-im-internet.de/estg/__23.html) | | Australia | Net capital gain taxed at marginal income tax rates | 50% CGT discount for individuals holding 12 months or more | Wash sales treated as tax avoidance; records kept for 5 years after the relevant CGT event | [ATO](https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments) | | Canada | Half of a capital gain is added to income at marginal rates | None specific to crypto | Frequent trading can be business income (fully taxable); superficial loss rule applies to capital property | [CRA](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/cryptocurrency-guide/income-crypto-transactions.html) | | Portugal | 28% on gains from crypto held less than 365 days | Gains on crypto held 365 days or more are excluded | Crypto-to-crypto swaps are not taxed at the time of the swap; leaving Portugal counts as a disposal | [Portal das Finanças](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs10.aspx) | | Singapore | No capital gains tax | Gains from investing are generally not taxed | Profits from trading digital tokens as a business are taxable income | [IRAS](https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/gains-from-sale-of-property-shares-and-financial-instruments) | | United Arab Emirates | No personal income tax | Individuals’ investment gains are not taxed | 9% corporate tax on business profits above AED 375,000 (financial years from 1 June 2023) | [UAE government portal](https://u.ae/en/information-and-services/finance-and-investment/taxation) | The differences are large. A gain that is tax-free in Germany after a year would, in the US, be taxed at up to 20% (plus the 3.8% net investment income tax for higher earners) if held for more than a year, or at up to 37% if held for a year or less. For the basics that apply everywhere, start with our guide to [how crypto is taxed](https://wealtii.com/learn/crypto-taxation-basics), and see [what crypto tax records to keep](https://wealtii.com/learn/crypto-record-keeping) for each country’s retention rules. ## How does the UK tax crypto? HMRC treats cryptoassets as property, and for most individuals disposals fall under capital gains tax. Since 30 October 2024, gains are taxed at 18% within the basic-rate band and 24% above it, and the annual exempt amount is £3,000 for 2024/25, 2025/26 and 2026/27. Disposals are matched first with tokens bought the same day, then with tokens bought in the following 30 days, and only then with the average cost of the Section 104 pool. Staking and mining rewards are generally taxed as miscellaneous income at their sterling value when received. ## How does the US tax crypto? The IRS treats digital assets as property. For 2026, long-term gains (assets held more than a year) are taxed at 0% up to $49,450 of taxable income for single filers ($98,900 for married couples filing jointly), 15% above that and 20% at the top, while short-term gains are taxed as ordinary income at 10% to 37%. Brokers now report sales on Form 1099-DA. The wash-sale rule in section 1091 covers stock and securities, and a bill to extend it to digital assets had not become law by 21 October 2026. ## Why is Germany called crypto-friendly for long-term holders? Under section 23 of Germany's Income Tax Act, crypto sold more than one year after purchase is a tax-free private sale. Short-term gains are taxed at your personal rate unless your total private sale gains for the year are below €1,000 (raised from €600 from tax year 2024); the limit is a threshold, so once gains reach €1,000 the whole amount is taxable. The Federal Ministry of Finance dropped the idea that staking or lending coins extends the holding period to ten years in its letter of 10 May 2022, and kept that position in the replacement letter of 6 March 2025. Staking rewards are taxed as other income, with a separate €256 exemption limit. A draft circulated by the ministry in autumn 2026 would tax crypto bought from 2027 at a flat 25% regardless of holding period; it was not law on 21 October 2026. ## How do Australia and Canada tax crypto? In Australia, crypto held as an investment is a CGT asset. Individuals who hold it for at least 12 months can usually reduce the gain by 50% before it is added to their income. The ATO warns that selling and quickly rebuying to create a loss can be treated as tax avoidance under Part IVA, and it uses exchange data to find such wash sales. In Canada, the CRA says you include half of a capital gain in your income for the year, but frequent or business-like crypto trading can be treated as business income, which is fully taxable. The superficial loss rule can deny a loss when you rebuy the same property within 30 days before or after a sale. ## Can moving abroad reduce crypto tax? Tax usually follows residence, so moving can change what you owe, but it is rarely simple. Portugal treats leaving the country as a disposal of crypto, several countries, including the UK, can tax gains made while temporarily non-resident if you return within a few years, and new reporting rules mean your data follows you. The OECD Crypto-Asset Reporting Framework had 77 jurisdictions committed to exchanging information by 2029 as of the OECD's September 2026 list, and the EU's DAC8 rules have applied since 1 January 2026. Our guide to [legal ways to reduce crypto tax](https://wealtii.com/learn/crypto-tax-optimization-strategies) covers options that do not require moving, and our [table of crypto's legal status by country](https://wealtii.com/learn/legal-status-of-cryptocurrencies) covers the regulatory side. ## Frequently Asked Questions ### Which countries do not tax crypto gains for individuals? Singapore and the UAE generally do not tax individuals’ capital gains, although trading profits or business activity can be taxed. Germany exempts gains on crypto held for more than one year, and Portugal exempts gains on crypto held for 365 days or more. Residence rules and exit taxes still apply, so check before relying on any exemption. ### Is crypto tax-free in Germany after one year? Under the law in force on 21 October 2026, yes for private investors: gains on crypto held for more than one year are tax-free under section 23 of the Income Tax Act. Gains on crypto sold within a year are tax-free only if total private sale gains stay below €1,000. A government draft would end the one-year exemption for crypto bought from 2027. ### How is crypto taxed in Australia? The ATO treats crypto held as an investment as a CGT asset. Net gains are added to your income and taxed at your marginal rate, and individuals who hold an asset for at least 12 months can usually claim a 50% CGT discount. The ATO treats wash sales designed to create losses as tax avoidance. ### Does the US wash-sale rule apply to crypto? Not yet for crypto that is not a security. Section 1091 applies to stock or securities. A bill to extend it to digital assets (H.R. 10357) was approved by the House Ways and Means Committee in September 2026 but was not law on 21 October 2026, so watch for changes. ## Sources & References 1. [GOV.UK — Capital Gains Tax rates and annual tax-free allowances](https://www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax/capital-gains-tax-rates-and-annual-tax-free-allowances) (accessed 21 Oct 2026) 2. [IRS — Revenue Procedure 2025-32 (2026 inflation adjustments, capital gains thresholds)](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) (accessed 21 Oct 2026) 3. [German Income Tax Act (EStG) — Section 23, private sale transactions](https://www.gesetze-im-internet.de/estg/__23.html) (accessed 21 Oct 2026) 4. [Australian Taxation Office — Wash sales: the ATO is cleaning up dirty laundry](https://www.ato.gov.au/media-centre/wash-sales-the-ato-is-cleaning-up-dirty-laundry) (accessed 21 Oct 2026) 5. [OECD Global Forum — Jurisdictions committed to the Crypto-Asset Reporting Framework](https://www.oecd.org/content/dam/oecd/en/networks/global-forum-tax-transparency/commitments-carf.pdf) (accessed 21 Oct 2026) Reviewed against the cited official sources on 21 October 2026. Country sources in the table were also accessed on 21 Oct 2026. Disclaimer: Educational content only. Wealtii is early-stage and is not regulated by any financial regulator. Tax and legal rules change frequently and differ by country. This article is general information, not tax or legal advice — consult a qualified professional in your jurisdiction. ## Further reading from official sources - [OECD: Crypto-Asset Reporting Framework](https://www.oecd.org/tax/exchange-of-tax-information/crypto-asset-reporting-framework.htm) - [IRS: Virtual currencies](https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies) Tax and legal rules differ by country and change often. This guide is general information, not tax or legal advice — check your local tax authority or a qualified adviser. [Zayd Ahmed](https://wealtii.com/editorial-policy#zayd-ahmed) Founder & CEO, Wealtii Computer Science Engineer | 5+ Years in DeFi & Digital Assets