CHART: How bitcoin and crypto are taxed across the G7

President-elect Donald Trump has signaled that his administration will take a friendlier approach to bitcoin and cryptocurrency, which may influence the way they are taxed in the US and abroad.

In the US, bitcoin and crypto are currently viewed as property. Short-term gains (less than one year) are taxed between 10% and 37%, depending on income. Similarly, long-term bitcoin and crypto gains are taxed between 0% and 20%.

US crypto holders may use their capital losses to offset their gains. For most individuals, the tax deadline is the same as for other assets: April 15.

Up to the north, Canada taxes just 50% of a casual investor’s capital gains. Tax rates follow Federal Income Tax and Provincial Income Tax, meaning bitcoin and crypto are taxed between 15% to 33% depending on income. Gains may be offset by 50% of capital losses.

Across the pond in the UK, capital gains tax ranges from 10% to 20%. The UK also taxes mining, staking, and lending rewards between 20% and 45% (income tax).

France, meanwhile, simply has a 30% flat rate on bitcoin and crypto capital gains for the casual investor. Gains below €305 are tax free. This is similar to Italy, where the flat rate is 24% on bitcoin and crypto gains over €2,000. Recently, a rate hike to 42% has been floated but widely contested, and will likely change to 28%.

In Germany, the rate is between 0% and 45% depending on income. Finally, in Japan, gains exceeding 200,000 Japanese Yen ($1,300) are taxed between 15% to 55% depending on income.

Please note these tax rates are for casual investors, are not exhaustive, and are subject to change.

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