What Changes for Crypto Tax in 2026?

In 2026, crypto tax changes around the world share one common thread: better data.

Governments aren’t racing to raise rates (in fact, many are implementing friendlier tax laws), but for the first time, transaction data is being collected and shared on a global scale. From new IRS forms to international data-sharing frameworks, crypto transactions are becoming more transparent than ever. Learn about the key changes for 2026 globally.

The US

1099-DA arrives, and basis rules tighten, but pro-crypto bills and state tax cuts are on the table.

Form 1099-DA arrives

The IRS finalized broker reporting rules for digital assets, and Form 1099-DA is the centerpiece. Crypto exchanges and other brokers are required to begin reporting sales and other taxable transactions occurring on or after January 1, 2025. Forms will hit investors’ inboxes by February 17, 2026, at the latest.

For the first year of implementation, the IRS has allowed exchanges some breathing room regarding cost basis reporting, as most of them simply didn’t have the systems in place to identify this accurately.

It’s good news for exchanges, but likely bad news for investors because it’s going to mean a lot of inaccurate forms (fortunately, Koinly can help with this).

Wallet-by-wallet tracking is in place

The IRS has also pointed taxpayers to Revenue Procedure 2024-28 (and related guidance) on allocating basis to wallets/accounts as of January 1, 2025. If you’ve historically “pooled” lots across multiple wallets/exchanges in a single mental bucket, 2026 is where that starts to get painful during reconciliation if you didn’t utilize the safe harbor exemption.

State-level changes to CGT

While federal rules tend to get the most attention, state-level capital gains treatment can materially change your effective tax rate in 2026, as many states focus on reducing or eradicating state taxes entirely, while others are taking the opposite approach:

• Missouri has eliminated state income tax on capital gains starting with the 2025 tax year, making it one of the most crypto-friendly states from a capital gains perspective in 2026. Federal tax still applies, but the state layer is removed entirely.

• Kentucky, Mississippi, and Oklahoma have all created legislation to gradually eliminate state income tax entirely.

• Washington implemented an additional 2.9% surtax (creating an effective top rate of 9.9%) for capital gains exceeding $1 million, but also created a $278,000 exemption to shield smaller investors from the standard 7% rate.

For crypto investors with significant realized gains, state tax planning is no longer a rounding error and can have a significant impact on your overall bill as taxes compete to attract more investment through tax incentives.

Pro-crypto bills are in the works

Alongside the proposed Strategic Bitcoin Reserve under the BITCOIN Act, several other pro-crypto bills are gaining attention in the US.

Most notably, the CLARITY Act includes a proposed de minimis exemption for small crypto transactions. If enacted, this would allow people to spend crypto in everyday situations without triggering a taxable event below a set threshold.

That’s bullish for mainstream adoption, and equally important, it would significantly simplify crypto tax reporting by removing the need to track gains on minor, low-value transactions.

Europe

CARF data collection begins alongside EU Directives, with the UK taking the most aggressive approach.

CARF implementation rolls out in 40+ countries

Across Europe and beyond, 2026 marks the first year that crypto exchanges begin collecting data under the OECD’s Crypto-Asset Reporting Framework (CARF). The framework is designed to standardize how exchanges report user identity and transaction data, and to enable automatic information sharing between tax authorities.

While CARF itself doesn’t change how crypto is taxed, it dramatically changes how easily governments can see crypto activity, particularly when users operate across borders.

More than 40 jurisdictions have now committed to CARF, with many beginning data collection from January 1, 2026, and the first international exchanges of information expected in 2027.

Globally, more than 75 countries have committed to implementing CARF rules, including tax havens like the UAE, Singapore, and Switzerland.

UK data collection starts now

The United Kingdom has confirmed it will implement CARF-aligned rules requiring cryptoasset service providers to collect and report user data to HMRC starting in 2026.

For UK taxpayers, this means:

• Exchanges will request additional tax residency and identifying information

• Transaction data will be reported directly to HMRC

• Historic non-compliance will be easier to detect once data sharing begins

DAC8 mirrors CARF across the EU

Within the European Union, CARF is being implemented through DAC8, an expansion of the EU’s tax transparency directive. Under DAC8:

• Member states must apply the rules from January 1, 2026

• Crypto platforms must report user identity and transaction data

• Information will be shared automatically between EU tax authorities

As with the UK, the change is not about higher rates; it’s about near-total visibility of crypto activity across borders.

Italy

Italy’s new budget introduces crypto tax hikes starting January 1, 2026.

Previously, capital gains from crypto were taxed at 26%, with a €2,000 annual exemption. From 2026, the substitute tax on crypto gains rises to 33%, and the exemption is removed. This means that all realised crypto gains become taxable at a higher rate, including gains from selling, swapping, or otherwise disposing of digital assets.

Under previous Italian crypto tax rules, if taxpayers cannot substantiate their acquisition cost, the tax authority may treat the cost basis as zero, significantly increasing the taxable gain. To soften the impact of the higher rate, Italy has introduced a transitional re-basement option. Taxpayers holding crypto before 2026 may elect to reset their cost basis to market value by paying a one-off substitute tax, reducing future exposure under the 33% regime.

There is also a carve-out for certain euro-denominated stablecoins that qualify as electronic money tokens. Gains on these assets may continue to be taxed at 26%, rather than the higher 33% rate.

Canada

A higher inclusion rate arrives for large capital gains.

The 2/3 capital gains inclusion rate takes effect

Canada’s most significant crypto tax change for 2026 is the introduction of a 2/3 capital gains inclusion rate for higher gains.

From January 1, 2026:

• Individuals pay tax on two-thirds of capital gains above CAD $250,000 per year

• Gains below that threshold remain subject to the 50% inclusion rate

• Corporations and most trusts are generally subject to the 2/3 rate on all gains

For casual investors, the change may have little impact on crypto taxes in Canada. But for those realizing large crypto gains in a single year, the higher inclusion rate can materially increase the effective tax burden.

India

Traders receive notices, but reform looks likely.

Enforcement notices incoming

Thousands of crypto investors have reported receiving enforcement notices as TDS reporting catches up with any investors failing to report crypto taxes in India.

Tax authorities have been actively issuing enforcement notices, including to offshore exchanges and traders who may not have properly declared gains or complied with registration and reporting requirements.

But tax reform is on the horizon

India’s crypto tax regime hasn’t softened, but 2026 could be a turning point in how it’s structured and enforced.

Under the current system, crypto gains are taxed at a flat 30% rate, with a 1% tax deducted at source (TDS) on many transactions. There’s no ability to offset losses against gains or carry them forward, which makes active trading especially costly, and the 1% TDS creates a large tax burden for both exchanges and investors.

However, India’s tax authority has formally engaged with crypto platforms to solicit feedback on the current regime, including whether the existing 30% tax and 1% TDS rates should be rebalanced, whether losses should be deductible, and how CARF could be implemented. 

Brazil

A flat tax brings crypto fully into the mainstream tax system.

A new 17.5% tax on crypto gains

Brazil has overhauled its crypto tax regime, and 2026 is the first full year under the new rules.

Profits from selling, swapping, or otherwise disposing of cryptoassets are now subject to a flat 17.5% capital gains tax. This replaces the previous system, which allowed a monthly exemption and applied progressive tax rates once thresholds were exceeded.

Under the new approach, all net crypto gains are taxable, regardless of transaction size or frequency.

Reporting and compliance tighten

Alongside the new flat tax, Brazil has increased reporting requirements. Crypto holdings and transactions must be disclosed in annual tax filings, and larger or more frequent transactions remain subject to additional reporting.

Brazil’s approach in 2026 reflects a broader global trend: fewer special carve-outs for crypto, and deeper integration into standard tax systems.

Japan

Lower tax rates for qualifying crypto, but only for some assets.

Moving away from “miscellaneous income” taxation

Japan has long treated crypto profits as miscellaneous income, meaning individuals could face extremely high marginal tax rates (up to around 55%). That made crypto investing and trading notably less attractive compared with other financial markets like stocks.

In 2026, that begins to change, but with important limits.

Under Japan’s 2026 tax reform blueprint, the country plans to cut the maximum tax rate on crypto gains to a flat 20%, aligning them with the tax treatment of stocks and investment trusts.

The catch is that this lower rate will only apply to ‘specified crypto assets’, that is, digital assets handled by registered and licensed financial firms under Japan’s Financial Instruments and Exchange Act (FIEA). In practice:

• Widely traded assets like Bitcoin and Ethereum are expected to qualify if traded through registered exchanges or firms.

• Many smaller altcoins, NFTs, and assets held on unregistered platforms may not qualify and could remain taxed at the higher miscellaneous income rates

• The lower rate applies only when the asset is handled by a licensed operator.

Japan’s reform also introduces a three-year loss carry-forward provision for qualifying crypto gains, enabling investors to offset future profits with past losses.

Less guesswork, more disclosure

Across every major jurisdiction, 2026 marks a clear turning point for crypto taxation, not because governments are suddenly hiking rates, but because they finally have the data to enforce the rules that already exist. That means fewer gaps, fewer assumptions, and far less room for error.

The picture isn’t uniformly negative. Countries like Japan and Brazil are simplifying tax treatment or lowering rates, while policymakers in the US and India are actively discussing reforms that could make everyday crypto use and reporting more practical over time. The takeaway for 2026 is simple: crypto taxes aren’t getting harsher — they’re getting clearer.

Now exchanges report directly to tax authorities, and cross-border data sharing is becoming standard, keeping accurate records across wallets, platforms, and jurisdictions matters more than ever.

Crypto tax calculators like Koinly help you stay compliant with as little manual work as possible by automatically tracking transactions, calculating gains and losses, and generating crypto tax reports that comply with local rules.