No one enjoys paying taxes, but it’s simply part of the territory when trading or investing in cryptocurrencies.
As if taxes weren’t challenging enough, we now face mountains of crypto transactions that seem impossible to navigate.
Fortunately, you don’t need to tackle this problem alone. As the crypto industry expands, so do the services supporting it, including essential tax software solutions.
With that in mind, we’ll explore the best crypto tax software available, allowing you to outsource this headache and return to a normal level of tax-related frustration.
Let this comprehensive review guide you toward simplifying your crypto taxes by navigating this complex space with the best hands-off crypto tax software solutions.
TokenTax (Most Advanced)
TokenTax is a comprehensive cryptocurrency tax software, calculator, and full-service accounting firm that delivers everything crypto traders and investors need to file their transaction data accurately and completely.
TokenTax offers four plans designed for crypto traders and investors with varying tax filing requirements. More exchanges and transactions require higher tiers, but these premium plans include additional services like tax-loss harvesting, Ethereum gas fee reports, and DeFi and NFT support.
TokenTax supports trade data from every crypto exchange, protocol, blockchain, and wallet, ensuring its services work regardless of where your crypto was purchased, transferred, or sold.
TokenTax’s crypto tax software excels by including features that serve all types of crypto enthusiasts, from active traders to long-term investors to miners.
Beyond supporting spot crypto asset transactions, TokenTax handles margin and futures trading, DeFi exchanges, and NFT trades.
The TokenTax software efficiently manages missing cost basis data, high transaction volumes, and cross-chain transactions.
For financial institutions or high-net-worth individuals deeply involved in crypto staking/mining with highly complex tax situations, TokenTax ranks among the premier services available.
However, TokenTax comes with a premium price tag compared to alternatives. If you want software with the most comprehensive features, TokenTax is an excellent choice, but you’ll pay significantly for those advanced capabilities.
Pros
- Supports every crypto exchange and wallet
- TurboTax integration
- Tax loss harvesting tool
- Mining and staking reports
- Ethereum gas fee report
Cons
- Basic plan only supports Coinbase
- Plans are expensive relative to competitors
- No plan supports unlimited transactions
Koinly (Best Free Option)
Koinly is a crypto tax calculator for businesses, accountants, and retail investors that supports 400+ exchanges, 100+ wallets, and 170+ blockchains.
Koinly delivers four core features through its crypto tax software: portfolio tracking, data importing, comprehensive crypto tax reports, and error reconciliation.
Koinly’s portfolio tracking tools let you view total holdings and portfolio growth over time across all wallets and accounts, while also displaying all tax liabilities.
You’ll see your ROI, dollar amount invested in each coin, profit/loss numbers, capital gains taxes, and an overview of income taxes for mining, staking, lending, and other crypto-related taxable income.
For tax reports, Koinly includes transaction history, capital gains tax reports, income tax reports, expense reports, end-of-year holdings reports, complete crypto tax reports, and more.
Koinly enables easy export of transactions to other tax software like TurboTax, TaxAct, and H&R Block, or you can download tax reports directly.
Koinly offers four plans ranging from $0 to $179 per tax year. Its free plan includes up to 10,000 transactions, unlimited wallets and exchanges, portfolio tracking, capital gains summaries, and much more, making it the best free crypto tax software solution available.
Most crypto participants don’t need the advanced features found on other platforms or within expensive plans, making Koinly an excellent choice for anyone seeking a straightforward solution for crypto gains and losses.
In summary, Koinly stands as arguably the best free crypto tax service available, with respectable and affordable paid options. While it lacks many advanced features of other premium platforms, those features aren’t necessary for most crypto investors or traders.
Pros
- Excellent Free plan
- Cross-exchange portfolio tracking
- Tons of learning resources
- Affordable paid plans
Cons
- No NFT tax reports
- No Ethereum gas fee reports
- No tax-loss harvesting reports
TaxBit (Best Overall)
TaxBit is an advanced crypto tax software and portfolio tracking service for individuals and businesses that supports over 500+ exchanges, wallets, DeFi protocols, and NFT marketplaces.
While TaxBit offers several paid plans with advanced features, its free plan includes current-year tax forms, a DeFi and NFT tax engine, and allows integration of cryptocurrency data across all supported sources.
TaxBit handles all data normalization and tax calculations automatically, providing real-time visibility into the tax impact of all your cryptocurrency activity.
TaxBit also delivers real-time portfolio insights and opportunities to optimize your tax-loss harvesting strategies.
In TaxBit’s Plus+ and Pro plans, you can preview the tax impact of each trade before execution, receiving data and recommendations on taxable events to maximize your tax savings.
The Plus+ and Pro plans provide access to comprehensive NFT and DeFi centers where you can view your actual NFTs, DeFi positions, and corresponding performance analysis.
Regarding TaxBit’s paid plans, it rivals TokenTax by offering advanced features like tax-loss harvesting and NFT functions, making it an attractive alternative for individuals with complex tax needs.
TaxBit essentially matches TokenTax’s functionality, with few exceptions like gas fee and mining reports, but at a much lower yearly subscription cost. The most expensive plan costs only $500 compared to TokenTax’s $3,499.
Therefore, TaxBit represents an ideal best-of-both-worlds crypto tax solution, striking a healthy balance between advanced tax tools and affordability.
Pros
- Advanced features for a reasonable price
- Tax-loss harvesting reports
- Tracks portfolio performance, including NFT and DeFi crypto trades
- Includes a free plan with unlimited transactions
- CPA review for top-tier plan
Cons
- Free plan has limited features and tax documents
- No Ethereum gas fee reports
- No mining or staking reports
- Tax-loss harvesting only in $175+ plans
Conclusion: Best Crypto Tax Software
After thoroughly evaluating all platforms in this crypto tax software review, we believe TokenTax leads as the most advanced platform, Koinly excels as the best free option, and TaxBit emerges as the best overall choice.
TokenTax offers the most advanced features including average cost basis calculation, Ethereum gas fee reports, DeFi and NFT support, tax-loss harvesting dashboard, and numerous other tools, though it lacks a free account option.
If those specific features appeal to you, TokenTax merits consideration, but for most purposes, TaxBit provides a more affordable alternative with comparable functionality.
However, Koinly’s free plan should satisfy the average crypto investor’s needs, making it essential to consider if your crypto tax requirements are straightforward.
Ultimately, the best tax filing software for your cryptocurrency taxes depends on your specific needs based on crypto trading, mining, and staking activities.
Most crypto traders and investors will find Koinly’s free plan sufficient, but those with advanced tax needs requiring sophisticated tools or professional assistance should prioritize TaxBit and TokenTax.
The latter represents arguably the most advanced crypto tax software available, while the former offers a slightly less advanced yet significantly more affordable alternative.
We hope this comprehensive crypto tax software review helps you confidently move crypto tax headaches into your rear-view mirror.
