The cryptocurrency industry continues to grow and expand, becoming more complex and intricate with each passing year. Crypto investing is gaining popularity among investors and traders due to its promising potential to yield significant returns in a short period.
While investing in the crypto market can make you a millionaire or even a billionaire in a short period, it comes with its challenges, one of which is managing taxes for crypto trades. Recording transactions, calculating net profit and loss, and filing taxes can be time-consuming and confusing.
As a result, crypto tax software tools have become essential for individuals and businesses looking to stay compliant with their taxes. In this blog post, we will discuss the top 10 crypto tax software tools of 2023 identified by our expert team based on their features, ease of use, and customer experience.
What is Crypto Tax Software?
As cryptocurrencies like Bitcoin and Ethereum rise in popularity, tax authorities worldwide are beginning to impose regulations on crypto assets. Crypto tax software tools are a specialized type of software that helps individuals and businesses keep accurate records of their crypto activities, calculate net profit or loss on each trade, and automatically generate reports for filing taxes.
These software tools help users stay compliant with their crypto tax requirements and save time by automating the process of tax filing. If you integrate the best crypto tax software with the exchange you use to manage your crypto assets. It immediately collects and records the details of your transactions when you complete an exchange or trade.
Here are a few features:
- Transaction tracking: Crypto tax software allows users to import their cryptocurrency transaction history from exchanges or wallets, or manually input transaction details.
- Data aggregation: It aggregates data from several sources to create a single view of users’ crypto activities and holdings.
- Tax calculation: The software uses the user’s transaction data and applicable tax regulations to auto-calculate taxable events and associated gains for tax purposes.
- Cost basis methods: Crypto tax software can support varied cost basis calculation methods like FIFO, LIFO, specific identification, and average cost.
- Tax reporting: Upon calculation completion, the software generates tax reports like the IRS Form 8949 for the US or equivalent forms in other countries.
- Integration with tax software: Some crypto tax software can directly integrate with tools like TurboTax or tax professionals. This simplifies the tax return filing process.
Best Crypto Tax Software Tools In 2023
As the cryptocurrency industry continues to evolve, it’s essential to stay up-to-date on the best tax software tools available. With so many different options available on the market, it can be difficult to know which one is best for your specific needs. That’s why we’ve put together a comprehensive review of the top 10 Best Crypto Tax Software Tools in 2023.
We’ll also provide an in-depth analysis of each product’s capabilities so you can make an informed decision about which one might be right for your specific needs as a crypto user. So, let’s get started!
Also Read: Top 10 Best NFT Wallets to Use in 2023
Koinly is one of the most popular crypto tax software that enables users to manage their digital currency transactions efficiently. With Koinly, individuals and businesses can easily track their crypto investments across multiple wallets and exchanges in a single platform. The software provides a user-friendly interface, making it possible to manage assets regardless of the complexity or sophistication of your portfolio.
What makes Koinly stand out is its ability to integrate seamlessly with over 400 exchanges and wallets. The platform supports API connections for data import from most kinds of wallets and exchanges, eliminating the need for manual data entry. This online service supports over 600 crypto integrations, which allows it to provide some of the broadest blockchain coverage in the industry. It also automatically calculates capital gains and income tax liabilities in the US, UK, Canada, Australia, and 20 other countries.
- User-friendly dashboard.
- Supports 20 countries with tax laws.
- Integrates with many exchanges and wallets.
- Automates data importing.
- International tax calculations and filling.
- Tax reports are not included in the free plan.
- Only Trader plan subscribers get email support.
|Up to 10.000 Transactions||Per year||Per year||Per year|
CoinLedger (Formerly known as CryptoTrader.Tax) is another innovative software platform that offers hassle-free tax report generation for cryptocurrency users. With over 400,000 customers worldwide, CoinLedger supports unlimited exchanges and real-time profit and loss reports. This user-friendly software allows for the importing of tax data from various crypto platforms and provides a downloadable tax form that can be sent to your tax software or accountant.
CoinLedger platform supports more than 10,00 cryptocurrencies in various exchanges and wallets worldwide. Its tax-loss harvesting tools, free portfolio tracking, crypto tax tips, and auditing instruments provide cryptocurrency users with an all-in-one solution for managing their digital assets. CoinLedger’s top-notch customer service is also noteworthy, with responsive agents available via chat and email. Ultimately, CoinLedger is a must-have digital platform for all cryptocurrency traders and investors looking to streamline their tax reporting process and maximize their profitability.
- Tax-loss harvesting opportunities.
- Calculate NFT and Ethereum blockchain transactions.
- TurboTax integration.
- Comprehensive audit support.
- 24/7 reliable customer service is available via chat or email.
- Do not accept cryptos as payment.
- No Schedule D or other tax forms.
|Portfolio Tracking & Data import||Per year||Per year||Per year|
CoinTracking is a popular cryptocurrency portfolio tracking, tax reporting, and analysis platform that enables users to keep track of their digital assets and generate accurate tax reports. The platform supports over 110 cryptocurrency exchanges, making it easy to centralize all transaction data in one place. The software offers advanced analytics and automation features that are tailored to suit the needs of traders, investors, and enthusiasts alike.
With CoinTracking, users can easily and seamlessly track their cryptocurrency holdings, view real-time profit and loss data, monitor market trends and generate detailed reports for tax purposes. The software supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, and other 5,000+ Coins. One of the most notable features of CoinTracking is its ability to automate the import of transactions from various supported exchanges and wallets, making it effortless to reconcile and keep up-to-date with one’s holdings.
- Supports 110+ exchanges for importing data.
- API-based crypto trading is supported.
- Offers detailed charting and portfolio tracking.
- Comprehensive portfolio tracking features.
- Real-time price updates on over 12,033 coins.
- iOS and Android apps.
- The free plan supports just 2 wallets.
- ICOs are not supported.
|200 Transactions||Per month||Per month||Per month|
Accointing is a user-friendly crypto tracking as well as tax reporting software. The platform offers a variety of features that can help beginners navigate the complexities of cryptocurrency transactions, such as importing all transactions easily through API connections or manual inputs. With Accointing, users can easily import data from different platforms, manage their crypto profits and losses, and even utilize tax harvesting features to optimize their tax liability. Accointing is available as a web-based platform and offers a mobile app for iOS and Android devices
Accointing is its powerful cryptocurrency tax calculator which is designed to meet IRS tax regulations and guidelines. This tax calculator is not limited to US regulations but also encompasses Swiss, Australian, UK, German, and Austrian-based tax calculations. Accointing platform supports more than 4,500+ coins across over 300+ exchanges and wallets. The tool is specifically designed to ensure that users are compliant with tax regulations through accurate and up-to-date tax reporting.
- Desktop and mobile support.
- Integrates with over 300+ exchanges and wallets.
- Tax-loss harvesting.
- Generate US and European tax reports.
- Crypto tax expert support.
- Expert support only on Pro plans.
- The hobbyist plan enables only 500 transactions.
|Per year||Per year||Per year||Per year|
ZenLedger is a comprehensive cryptocurrency tax software solution that offers users the ability to track their crypto investments and generate necessary IRS/CRA tax forms. Whether you are a seasoned crypto investor or just starting out, ZenLedger provides a user-friendly platform designed to make tracking and importing transactions effortless and error-free. ZenLedger platform supports over 400+ exchanges, including 100+ DeFi protocols, and 10+ NFT platforms.
The software also includes a proprietary feature called Grand Unified Accounting that combines all of the transactions from your various crypto wallets into a single spreadsheet for easy reporting and analysis. ZenLedger also enables tax-loss harvesting, a strategy used to save you money on your trading decisions by offsetting your capital gains with your capital losses. ZenLedger’s customer support is available 24/7 via chat, email, or phone calls, and they go above and beyond to ensure every customer’s satisfaction.
- Easily integrate with TurboTax.
- Includes tax-loss harvesting.
- Tax optimization tool to fast-track the filing process.
- Robust security features and customer support available 24/7.
- DeFi applications are supported.
- Not international, only operating in the US.
- It is a bit more expensive than competitors.
|Up to 25 Transactions||Per year||Per year||Per year||Per year|
TaxBit is a leading cryptocurrency tax software and services firm that is solely focused on simplifying the complex process of cryptocurrency tax obligation reporting. With increasing government regulations on cryptocurrency transactions, there is a need for a robust crypto tax reporting platform that can help individuals, businesses, and tax professionals comply with these regulations. With its user-friendly interface, TaxBit makes it possible for crypto investors to import their data and automatically generate accurate tax reports.
The platform provides a comprehensive suite of tools that enable investors to report, calculate, and file their cryptocurrency taxes with ease. TaxBit’s software is easy-to-use and integrates with popular exchanges such as Binance, Coinbase, Gemini, and other 150+ exchanges. TaxBit’s most noteworthy feature is its “Pro Mode” which allows users to benefit from tax efficiency strategies such as automatic wash sale detection, cost basis reassignment, and advanced tax loss harvesting.
- Accurate and automated tax calculations.
- Advanced tax loss harvesting.
- Supports a wide range of digital assets (2,000+ Coins).
- Comprehensive audit support features.
- Integrates with popular exchanges and wallets.
- International support is available in multiple countries.
- Manual formatting for CSV files.
- No free plan is offered, and the cheapest plan starts at $50 per month.
|Per year||Per year||Per year|
Coinpanda is a revolutionary platform that offers a reliable and hassle-free solution for individuals, businesses, and professionals to manage their crypto taxes. Founded in Scandinavia in 2019, Coinpanda has rapidly emerged as one of the preeminent software solutions for crypto and Web3 tax reporting and compliance worldwide. With direct integration with over 500+ exchanges that support over 12,000+ cryptocurrencies, wallets, and blockchains, Coinpanda provides a comprehensive and automated tax calculation and filing service that simplifies the entire tax process.
Coinpanda is available in both a web-based platform and mobile app for iOS and Android devices, and it is available in 65+ countries. With its easy-to-use and intuitive interface, users can easily import their transaction data from exchanges and wallets using CSV or API keys. The platform offers a range of features including tax-loss harvesting, margins trading, futures, staking, NFTs, and DeFi support, among others. Coinpanda also provides portfolio tracking with personalized dashboards, profit-loss graphics, and real-time insights on 12,000+ coins.
- Automatic profit and loss calculation for all future and margin trading.
- Supports NFTs, DeFi, and staking.
- Audit trail records and automated audit proof documents.
- Supports over 500+ exchanges and wallets.
- The mobile app is available for iOS and Android.
- More quick customer service is required.
- It is a bit more expensive than competitors.
|25 Transactions||100 Transactions||1,000 Transactions||3,000 Transactions|
CoinTracker is another trusted crypto and NFT tax software with over a million users. With support for over 10,000 crypto assets and 300+ exchanges, it’s easy to add your first wallet or exchange to CoinTracker. From there, you can view your market value, investment performance, and portfolio allocation in real-time. The platform’s tax-loss harvesting feature allows you to save thousands of dollars per year, and its compliance with cryptocurrency tax rules ensures that you remain fully compliant with the law.
With CoinTracker software, you can easily calculate capital gains as well as profits and losses. Also, you can easily input your transactions and the platform will automatically calculate your gains, saving you valuable time and effort. Additionally, CoinTracker supports audit trails, short and long-capital gain calculations, cash flow analysis, and cost-basis accounting, giving you a comprehensive understanding of your cryptocurrency investments and taxes. The platform has full customer support in many countries, including India, the US, the UK, Canada, and Australia as well as partial support for others.
- Real-time portfolio performance tracking.
- Integrates with over 300+ exchanges and wallets.
- Tax-loss harvesting is available.
- Portfolio optimization feature available.
- Has an app for iOS and Android devices.
- The free plan allows 25 transactions and limits access to the full features.
- No chat support for the free plan.
|25 Transactions per year||Per year||Per year||Per year|
TokenTax is a comprehensive cryptocurrency tax software that provides an all-in-one solution for managing crypto taxes with ease. With its advanced automation features, the software simplifies the complex tax filing process for individuals and businesses dealing with cryptocurrency. It currently supports over 120 popular exchanges and wallets, enabling users to import transaction data through API and CSV uploads effortlessly. However, if required, users can manually add their trades from any exchange to keep their records up to date.
The tax software also features a dashboard that offers a snapshot of all your unrealized gains and losses, capital gains, and trading performance. Additionally, the platform provides tax-loss harvesting tools and integrates seamlessly with exchanges to gather all relevant data automatically. The software supports audit trails, short and long capital gains calculations, cash flow analysis, and cost basis accounting. Furthermore, the platform offers the flexibility to import and export data in CSV format, making it easy to integrate with other systems, such as accounting software.
- Smart tax loss harvesting feature.
- Supports NFT and DeFi protocols.
- Integrates with all major exchanges and supports 2,000+ digital assets.
- API and wallet integrations.
- Comprehensive portfolio management tools.
- No free plan is offered, and the cheapest plan starts at $65 per year.
- The basic plan has few features.
|Per year||Per year||Per year|
BitcoinTaxes is a valuable software for crypto enthusiasts and traders alike, offering cost-effective tax solutions to those who wish to stay on top of their assets and obligations. Unlike many of its competitors, BitcoinTaxes does not come with excessive fees or complex features that would be difficult for the average user to navigate. Instead, it allows traders to import trade histories from various popular exchanges such as Coinbase, Gemini, Binance, Bitfinex, and more, allowing users to keep track of their capital gains, balance, remaining cost basis, spending, and income for multiple years.
BitcoinTaxes is also known as Bitcoin.Tax provides excellent support for global fiat currencies, making it a valuable tool for traders beyond the United States, Canada, Australia, Germany, and the United Kingdom. Additionally, the software is designed to generate an IRS Form 8949 PDF or 8949 attachable statement, ensuring that users are well-equipped to file their taxes correctly. With its ability to calculate tax years, BitcoinTaxes is an indispensable tool that allows traders to stay ahead of their tax obligations, and it is one of the best deals available on the market for up to 100,000 transactions.
- Tax-loss harvesting feature.
- Advice from tax professionals.
- Form 8949, TurboTax TXF, TaxACT formats.
- Comprehensive support for exchanges, wallets, and mining pools.
- Competitive pricing.
- Data import support costs extra.
- Limited features for non-premium accounts.
|Free||Premium||Premium Extra||Deluxe||Trader (1M)||Trader (Unlimited)|
|20 Transactions||Per year||Per year||Per year||Per year|
Why Use a Crypto Tax Software Platform?
The adoption of cryptocurrency has been on the rise over the past decade, and it’s no surprise that such growth brings with it some regulatory challenges. One of the most significant challenges is tax filing for individuals who invest in digital assets. The complex and ever-changing tax laws around cryptocurrency create a taxing situation for investors to keep up with.
Using crypto tax software offers several advantages for individuals and businesses involved in crypto transactions. Here are some of the reasons why you should choose to use crypto tax software:
- Time-saving: Most software automates crypto record-keeping by integrating with exchanges.
- Accuracy: Crypto tax software simplifies cryptocurrency tracking, minimizing the risk of error, and can calculate accurate capital gains or losses.
- Helps with complicated tax rules: Crypto tax software can assist in paying the right tax each year, ensuring compliance and avoiding any sudden tax bills.
- Integration and Data Import: Integration of crypto tax software with cryptocurrency exchanges and wallets facilitates the direct import of transaction data, eliminating the need for manual data entry, and streamlining the tracking and organization of transactions.
- Generates tax forms: By using crypto tax software, you can complete your annual tax forms with ease without the need for an accountant.
- Tax Planning: Crypto tax software offers tax planning tools to optimize tax strategies, simulate scenarios, and make informed decisions about holding, buying, or selling cryptocurrencies.
How to Choose the Best Crypto Tax Software?
When choosing crypto tax software, there are several factors to consider to ensure that you find the best platform for your needs. Here are a few things to keep in mind:
- Ease of Use: The interface should be intuitive and straightforward to use, enabling users to navigate easily.
- Costs & Plans: Look out for any hidden fees or additional costs and compare the plans available to determine which one is most suitable for your requirements.
- Data Management: Check if the software allows you to import data from multiple exchanges and wallets and also offers support for CSV files.
- Tax Planning Features: It’s useful to have access to tax planning tools such as cost basis tracking, tax loss harvesting, portfolio analysis, etc.
- Integrations: Make sure that the software integrates with popular exchanges and wallets for a seamless experience.
- Customer Support: It’s always beneficial to have access to reliable customer service in case of any technical or other issues.
The best crypto tax software should enable you to stay organized, save time, and simplify your tax filing process. With so many options available, it’s important to research and find the one that best meets your needs.
Also Read: Top 10 AI Cryptocurrencies to Buy in 2023
The use of crypto tax software is becoming increasingly important in the world of crypto trading. There are plenty of excellent options available, and each one offers its own unique features and value, so it’s important to compare their offerings to see which one best suits your needs and budget.
With the right crypto tax platform, you can manage and file your crypto taxes with ease, stay compliant with the law, and save time and money in the process. We hope that this article helped you get a better understanding of the best crypto tax software tools available in 2023. Make sure to do your research and find the one that best fits your requirements.
Frequently Asked Questions
Is crypto tax software free?
No, most crypto tax software comes with a subscription fee. Some platforms may offer a free tier or free plan, but it will likely have limited features and capabilities.
Which is the best crypto tax software?
The best crypto tax software will depend on your specific needs and budget. It’s important to research and compare the features and plans offered by each platform before making your final decision.
Do I need crypto tax software?
If you are involved in cryptocurrency trading, then crypto tax software is essential to managing your taxes and staying compliant with the law. It can also save you time and money by automating the tax filing process.
What is the best way to file crypto taxes?
The best way to file crypto taxes is to use a reliable and reputable crypto tax software platform. This will enable you to track transactions, calculate capital gains or losses, and generate tax forms with ease.
When to File Cryptocurrency Taxes?
Cryptocurrency taxes must be filed annually, typically on the same date as your other taxes. The exact deadline will depend on where you live, so be sure to check with your local tax agency.
Can I do my crypto taxes myself?
Yes, it’s possible to complete your crypto taxes yourself if you have the right knowledge and tools. However, this can be time-consuming and may be more complicated than you think. Using crypto tax software can simplify the process and help ensure accuracy.