Bitcoin (BTC): How to Calculate Profit, Cost Basis & Tax
Bitcoin (BTC) is treated as property, not currency, for tax in the US, UK, Canada and Australia — so selling, swapping or spending BTC is a taxable disposal. To calculate a BTC trade, work out your cost basis (what you paid, including fees), subtract it from your proceeds to get the gain, then apply your country's capital-gains rules. Use the profit calculator for a single trade, the average-cost calculator to pool multiple buys, and the tax estimator to size the bill.
Reference price: 1 BTC ≈ USD 105,000 (as of 2026-06-14, illustrative only — not live; enter the current price in any calculator).
Calculating Bitcoin profit
Your BTC profit is your sale proceeds minus your cost basis, both net of exchange fees. Because Bitcoin trades to many decimal places, keep your quantity precise. The profit calculator handles fractional coins and the fee on each side.
Cost basis across many buys
Most people buy BTC repeatedly. Your overall cost basis is the weighted average of every purchase including fees. The UK and Canada generally require this pooled/average method; the US allows FIFO or specific identification. The average-cost calculator blends your buys into one figure.
Tax on Bitcoin
In the US, BTC held over 12 months gets the lower long-term rate; under 12 months it's taxed as ordinary income. The UK applies an £3,000 allowance then 18%/24%. Canada includes 50% of the gain; Australia halves the gain after 12 months. Estimate yours with the tax estimator. These are estimates, not tax advice — cite the IRS, HMRC, CRA or ATO for your situation.
Estimates for general information only — not financial or tax advice.
Frequently asked questions
Is buying Bitcoin a taxable event?
No. Simply buying and holding BTC is not taxable. Tax arises when you dispose of it — selling, swapping, gifting (in some cases) or spending it.
Do I owe tax if I move BTC between my own wallets?
No. Transferring Bitcoin between wallets you control is not a disposal and is not taxable, though you should keep records.
How is spending Bitcoin taxed?
Spending BTC on goods or services is a disposal: you have a gain or loss equal to the BTC's value at spend time minus your cost basis.
Related tools
Last updated: 2026-06-14