NFT Sale Tax Calculator
Estimate tax on an NFT sale — short-term at your ordinary rate, long-term capped at the 28% collectibles rate when the NFT is a collectible.
How it works
Gain = proceeds − basis · Short-term = ordinary rate · Long-term collectible = min(28%, ordinary rate) · Long-term non-collectible = 0/15/20%
The IRS treats most NFTs as property, and an art or collectible NFT held over a year can fall under the collectibles rule, which caps the long-term rate at 28% instead of the usual 20% top capital-gains rate. Held a year or less, any NFT gain is short-term and taxed at your ordinary rate. Your cost basis should include the mint price plus the gas fees you paid to acquire and sell.
Worked example
You minted an NFT for $4,000 (including gas) and sold it 18 months later for $15,000, an $11,000 long-term gain. As a collectible with a 24% ordinary bracket, the collectibles cap does not bite (24% < 28%), so tax is 11,000 × 24% = $2,640, leaving $8,360.
Frequently asked questions
Are NFTs taxed as collectibles?
The IRS has said it will treat NFTs that represent collectibles (like digital art) under the collectibles rule, meaning long-term gains are taxed at a rate up to 28% rather than the standard 20% ceiling. NFTs tied to non-collectible assets may use ordinary capital-gains rates.
What counts as my NFT cost basis?
Your basis is what you paid to acquire it — the mint or purchase price plus the gas and platform fees. Selling costs like marketplace commissions reduce your proceeds, lowering the taxable gain.
Is buying an NFT with crypto taxable?
Yes. Paying with crypto disposes of that crypto, so you owe tax on any gain in the coin since you acquired it, separate from the later tax when you sell the NFT itself.
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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.