Crypto Gift Tax Explained
Giving or receiving crypto? Great. Now let’s talk about the part no one wants to deal with: crypto gift tax. The good news? In the US, most crypto gifts are tax-free. The bad news? It gets a bit tricky when it’s time to sell. Here's how to navigate gift crypto tax.
Crypto gift tax US
It’s good news for US crypto investors when it comes to crypto gift tax.The IRS says, "a taxable gift is any property transferred for less than adequate and full consideration." In other words, the IRS considers a transaction a gift, provided you didn't receive anything of equal value in return.
Gifts under $18,000 in 2024: No reporting or tax for the giver.
Gifts under $19,000 in 2025: Same — no reporting or tax.
Gifts over the annual limit (over $18K in 2024, or $19K in 2025):
Giver must file IRS Form 709
But you don’t owe tax unless you’ve used up your lifetime exemption
Lifetime gift + estate tax exemption:
$13.61 million in 2024
$13.99 million in 2025
Are you taxed when you gift crypto?
Gifts under $19,000 per person in 2025? No tax and no filing required, says the IRS.
Gifts above $19,000? You must file Form 709 to report it, but you won’t owe gift tax unless your lifetime gifts exceed $13.99 million.
Gifts to a U.S. citizen spouse are unlimited and not reportable.
Donations to a 501(c)(3) charity may be deducted at fair market value. Keep your receipt (over $250).
Tax on receiving crypto?
No tax is due when you receive crypto as a gift in the U.S
You don’t need to report the gift to the IRS when you receive it
Tax applies later: when you sell, swap, or spend the gifted crypto
These actions are treated as disposals and may trigger Capital Gains Tax
The recipient typically uses a carryover basis:
The gifter’s original purchase price (plus fees)
The gifter’s original acquisition date (for holding period)
If the crypto lost value before it was gifted and you sell it for less:
You may need to use the fair market value on the day you received it instead of the carryover basis
Always track:
The date you received the gift
Its fair market value on that date
The gifter’s original cost basis and acquisition date
Whether any gift tax was paid (rare)
Getting crypto as a gift?
No tax due when you receive crypto as a gift in the U.S
If you dispose of the crypto gift later, tax comes into the picture
So keep a record of:
When you got the crypto
What it was worth on that date
What the original gifter paid for it (their “cost basis”)
Whether any gift tax was paid (rare, but possible)
Read next: Your Updated U.S Crypto Tax Guide
Selling crypto you received as a gift
Selling, swapping, or spending gifted crypto? That’s a taxable event in the U.S. You’ll owe Capital Gains Tax on any gain.
How much you owe depends on:
The gifter’s cost basis (what they originally paid, plus fees)
The fair market value when you got the gift
The sale price when you disposed of it
Example: The recipient made a loss
Erin buys 1 ETH for $2,000
She gifts it to Paul when it’s worth $1,000
Paul later sells it for $900
Because the ETH lost value before the gift, Paul uses the $1,000 value (not Erin’s $2,000 cost)
$900 – $1,000 = –$100
Paul has a $100 capital loss
Example: The gifter made a gain
Erin buys 1 ETH for $2,000
She gifts it to Paul when it’s worth $1,000
Paul sells it later for $2,200
Because the ETH increased in value after the gift, Paul uses Erin’s original cost basis of $2,000
$2,200 – $2,000 = $200
Paul has a $200 capital gain
This is called the "double basis rule" and yes, it’s as confusing as it sounds. If the sale price lands between the original cost basis and the gift’s market value, you won’t report a gain or a loss.
Crypto Gift Tax Rules Outside the US
Let’s take a quick trip around the world to see how other countries tax crypto gifts.
UK crypto gift tax
HMRC has clear guidance on gifting crypto. If you give away coins or tokens to a person who isn't your spouse or civil partner, you'll need to pay Capital Gains Tax in the UK.
Gifts to anyone except your spouse or civil partner?
Viewed as a capital disposal.
Subject to Capital Gains Tax.
Gifts to your spouse/civil partner?
No tax, there are different rules.
Many investors take advantage of this rule to optimize their tax position.
But they inherit your cost basis and may owe CGT when they sell.
EXAMPLE: Giving crypto to a spouse
Warren buys 1 BTC for £10,000
He gifts it to his husband Sam when it’s worth £20,000
Because it’s a gift to a spouse, no Capital Gains Tax is due at the time of the gift
EXAMPLE: Selling a crypto gift, as a spouse
Sam later sells the BTC for £25,000
He didn't sell on the same day or within 30 days of receiving so he uses the Shared Pool Cost Basis method to figure out his gains, as he owns multiple BTC.
His average cost basis of £15,000
£25,000 – £15,000 = £10,000
Sam has a £10,000 capital gain
He’ll pay Capital Gains Tax
Australia crypto gift tax
The ATO is clear that Australia views gifting an asset as a type of disposal, this means gifting crypto is subject to Capital Gains Tax in Australia.
Gifting crypto is a taxable disposal
You’ll owe CGT on any gains at the time of the gift.
The recipient won't pay tax on receipt.
But the recipient pays CGT when they dispose of the crypto, meaning they sell, swap, spend, or re-gift it.
EXAMPLE: Giving crypto
Ben buys 1 ETH for $3,000. This is Ben’s cost basis.
He gifts it to his friend Amar a few months later. The FMV of 1 ETH that day is $4,000.
$4,000 - $3,000 = $1000.
Ben has a capital gain of $1,000, which is subject to Capital Gains Tax.
EXAMPLE: Receiving crypto
Amar sells 1 ETH for $4,500 a couple of months later.
His cost basis is the FMV on the day he received the gift, so $4,000.
$4,500 - $4,000 = $500.
Amar has a capital gain of $500, which is subject to Capital Gains Tax.
Canada crypto gift tax
The CRA views cryptocurrency as a commodity, not a currency. Therefore, when you give crypto as a gift in Canada, this is subject to Capital Gains Tax as it’s seen as a disposal of an asset.
Gifting crypto is a disposal — you’ll owe CGT on any gains.
Recipients use the fair market value on the day they receive it as their cost basis, should they later wish to sell it.
Only 50% of capital gains are taxable in Canada.
EXAMPLE: Giving crypto
Noah buys 1 ETH for $4,000.
He later gifts it to Olly. The FMV for ETH that day is $4,200.
Noah’s cost basis is $4,000.
$4,200 - $4,000 = $200.
Noah has a capital gain of $200, 50% of which is subject to Capital Gains Tax.
EXAMPLE: Receiving crypto
Olly sells his 1 ETH a few months later for $4,500.
His cost basis is $4,200.
$4,500 - $4,200 = $300.
Olly has a capital gain of $300, 50% of which is subject to Capital Gains Tax.
Germany crypto gift tax
Considering how generous Germany's other crypto tax laws are, it should come as no surprise that their crypto gift tax laws are too. Germany has generous gift tax allowances (called Freibeträge), but there are conditions.
Gift tax (Schenkungssteuer) only applies once you exceed these allowances:
€500,000 for gifts to a spouse or civil partner
€400,000 for gifts to children
€20,000 for gifts to non-relatives (e.g. friends, unmarried partners, distant relatives)
These allowances renew every 10 years, so you can give up to these amounts every decade without triggering gift tax.
Once you exceed the allowance, the gift tax rates range from 7% to 50%, based on:
The value of the gift
The relationship between giver and recipient
There are three tax classes, each with its own rate bands:
Class I: Spouse, children, grandchildren (rates: 7%–30%)
Class II: Siblings, nieces/nephews, in-laws (rates: 15%–43%)
Class III: Unrelated individuals like friends (rates: 30%–50%)
France crypto gift tax
France is one of the best places to live if you’re feeling generous with your crypto.
Crypto is only taxed when converted to fiat.
Gifting crypto is not taxed for the giver or the recipient.
The recipient only pays tax if they sell it for fiat and make more than €305 in gains during the tax year.
Crypto gift = crypto tax?
The short answer is crypto gifts are taxed according to where you live. In some countries, like the US, gifting crypto is tax free. Meanwhile, in other countries, like Australia, gifting crypto is a disposal of a capital asset - like a sale, and any perceived gain is subject to Capital Gains Tax. Similarly, some countries - like Ireland - have a specific gift tax that applies.
Can foreign parents (or others) gift crypto tax-free?
Yes – mostly, but some reporting may be needed.
Crypto gifts from foreign persons are treated as non-taxable gifts by the IRS, you generally don't pay tax on the value received
However, if the total value of gifts from a single foreign person or estate exceeds $100,000 in a calendar year, you must file IRS Form 3520.
For gifts from foreign corporations or partnerships, the threshold is much lower: just over $19,000 (for 2024).
This is a reporting requirement only—you don’t owe income tax on the gift itself, but failing to file Form 3520 can trigger steep penalties.
Read next: IRS tax forms for crypto
Can crypto gifts reduce my tax bill?
Many investors use gift allowances to optimize their tax position. For example, in the UK, where gifts are tax free to spouses and there is a personal capital gains tax allowance or a partner with lower income in the household - you can gift crypto to reduce your overall tax liability.
For others, where gifts are taxable, they may use this to create capital losses to offset capital gains to reduce their overall tax burden. Koinly crypto tax software can help you calculate your crypto taxes, including any gifted crypto.
Want help tracking it all?
Koinly makes crypto gift tracking easy.
Tag gifts (tax-free or taxable) inside your Koinly account
Track cost basis, gains, and losses automatically
Download country-specific tax reports in minutes
No spreadsheets. No drama. Just clean crypto tax reports, ready for filing.
