Crypto Mining Income Tax Calculator
Estimate income tax on mined crypto, taxed at fair-market value when received — plus 15.3% self-employment tax if you mine as a business.
How it works
Income = FMV of coins when mined · Business net = FMV − expenses · SE tax = net × 0.9235 × 15.3% · Income tax = fed tax(income + net − ½ SE tax) − fed tax(income)
Mined coins are ordinary income at their fair-market value on the day you receive them. If you mine as a trade or business you can deduct expenses like electricity and hardware, but you also owe 15.3% self-employment tax on the net; one-half of that SE tax is deductible against income tax. Hobby miners report the full value as income and, under current law, cannot deduct their mining costs — often the worse outcome.
Worked example
A business miner receives $30,000 of coins and spends $8,000 on power and gear, a $22,000 net. Self-employment tax is 22,000 × 0.9235 × 15.3% ≈ $3,109; half of that ($1,554) is deducted, so income tax is figured on about $20,446 stacked on $60,000 of income — roughly $4,498 — for about $7,607 of total tax.
Frequently asked questions
Is mined crypto taxed when I receive it or when I sell it?
Both. It is ordinary income at fair-market value when mined, and that value is your cost basis. Selling later triggers a separate capital gain or loss on any price change since receipt.
When do I owe self-employment tax on mining?
If your mining rises to the level of a trade or business — regular, continuous, profit-motivated activity — the net is self-employment income subject to the 15.3% SE tax. Casual hobby mining is not, but it also loses the expense deductions.
Can I deduct electricity and equipment?
Only if you mine as a business. Then power, a share of hardware cost (often via depreciation) and other ordinary expenses reduce your net income. Hobby miners cannot deduct these under current rules.
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Educational estimate using 2024 U.S. federal figures — ignores state tax, credits, phase-outs and your full situation. Not tax advice; confirm with a professional or the IRS.