Calculating Crypto Tax: Formula, Worked Example and Tax Table
Disposal proceeds minus acquisition cost minus fees: the formula is simple, the consumption order is not. With a worked example, a tax table for the usual income brackets and the points at which every calculator loses precision.
The formula is simple: disposal proceeds minus acquisition cost minus fees gives you the gain. If it is above the 1,000-euro exemption threshold and less than a year passed between purchase and sale, you pay tax on it at your personal rate. It only gets difficult once you have bought the same currency several times, because then the order decides.
This article walks through the calculation on a concrete example, gives a table for the usual income brackets and names the points at which every calculator reaches its limits.
The formula
The taxable gain under section 23 of the German Income Tax Act works out like this:
Disposal proceeds minus acquisition cost minus deductible expenses = gain or loss
The acquisition cost includes the purchase price together with the buying fee. The deductible expenses cover the fees on the sale and the transaction costs that can be attributed directly to the transaction. General costs such as a hardware wallet or a custody charge cannot be deducted.
A worked example
The decisive point is in the last line: had more than twelve months passed between purchase and sale, the same gain would have stayed tax free. The holding period is the only lever that brings the amount down to zero.
Watch the exemption threshold as well. It stands at 1,000 euros and applies to all private disposal transactions of a year taken together. It is an exemption threshold and not an allowance: on a gain of 1,001 euros you pay tax on the full amount, not just on the one euro above the line.
What is left of a 10,000-euro gain
The table shows the 2026 basic tariff for single filers. Two points belong with it, because they are often presented wrongly.
First, the solidarity surcharge. It amounts to 5.5 percent of the income tax, but only kicks in from an income tax of around 19,950 euros. For most investors in the lower rows of the table it does not arise at all. Calculators that add it across the board come out too high.
Second, the marginal rate. It applies to the additional euro, not to your entire income. A crypto gain can also lift you into a higher bracket, so that the average rate rises. Anyone close to a threshold should calculate more precisely than with a table.
What you need for the calculation
For every position sold you need four details. If one of them is missing, the calculation turns into an estimate:
- The acquisition date with the time, because the period runs to the day.
- The acquisition cost in euros, including the buying fee.
- The disposal date and price, likewise in euros.
- The wallet or exchange, because the assessment is made per wallet.
On a coin-to-coin swap there is no euro price. In that case the market value at the moment of the swap has to be used, for both sides of the transaction.
The point where every calculator loses precision
As long as you have bought once and sold once, the calculation is trivial. As soon as you have bought several times, the consumption order decides which coins count as sold, and with it the tax.
The Federal Ministry of Finance letter of 6 March 2025 sets out the order: individual identification comes first, where you can prove which specific coins you disposed of. Where that is not possible, the crypto assets acquired first count as the ones sold first for the purposes of the holding period. For the valuation the average method applies, and for simplicity FIFO may be assumed there as well.
This order usually works in your favour, because it uses up the oldest and therefore often tax-free positions first. But it can only be applied correctly if your history has no gaps. What that means for a savings plan is shown in our article on bitcoin and tax.
When a calculator is enough and when it is not
A simple calculator will do if you have few purchases, all on the same exchange, and trade exclusively against euros. Then you can reproduce the formula above in a spreadsheet.
A specialised tool pays off as soon as one of these points applies:
- You trade on several exchanges or move holdings between wallets.
- You swap coin for coin, because each transaction then needs two market values.
- You run a savings plan with many individual instalments.
- You receive staking or lending income, which has to be valued at the moment it arrives.
Which tools handle that and what they cost is set out in our comparison of crypto tax tools. One note on expectations: no tool replaces the tax assessment of the individual case, and none is liable for the result.
What would change about the calculation from 2027
Under the draft bill from the Federal Ministry of Finance of 8 September 2026, the calculation would become considerably simpler: 25 percent withholding tax plus solidarity surcharge on the gain, regardless of the holding period, and in exchange without the question of the twelve-month window.
As the draft stands, only crypto assets acquired after 31 December 2026 would be affected. For everything before that, the calculation would stay exactly as it is set out here. Nothing has been decided; the details are in our article on the cutoff date and grandfathering.
Frequently asked questions
How do I calculate the tax on crypto gains?
Disposal proceeds minus acquisition cost minus fees gives you the gain. You pay tax on it at your personal rate if the sale happened within twelve months and the total gain is above 1,000 euros.
Is there a free crypto tax calculator?
For simple cases the formula in a spreadsheet is enough. Free online calculators mostly handle a single transaction and take into account neither the consumption order nor the exemption threshold across all transactions.
How high is the tax rate on crypto?
There is no separate rate. Your personal income tax rate of 14 to 45 percent applies. After a holding period of more than twelve months no tax arises.
Does the solidarity surcharge always come on top?
No. It only kicks in from an income tax of around 19,950 euros and therefore concerns higher incomes only.
How do I calculate a coin-to-coin swap?
You use the market value at the moment of the swap. The coin given up counts as disposed of, the one received as acquired, with a fresh twelve-month period.
Can I deduct fees?
Yes, as far as they can be attributed to the individual transaction. Buying fees increase the acquisition cost, selling fees reduce the gain.
Sources
- Section 23 of the German Income Tax Act on private disposal transactions
- Federal Ministry of Finance letter of 6 March 2025, file reference IV C 1 - S 2256/00042/064/043, on the consumption order and valuation
- Solidarity Surcharge Act 1995 in the version applicable from 2021, on the exemption threshold
- Details of the draft bill based on the reporting of 8 September 2026
(As of 9 September 2026. All examples are simplified and calculated without church tax. This article is not tax advice.)
Transparency note: This article was produced with the assistance of artificial intelligence and reviewed by our editorial team before publication. All figures and claims were checked against the primary sources linked in the text.
