Mistakes on tax forms – crypto or otherwise – can be costly, leading to audits, penalties, or unexpected tax bills. Crypto taxes can be especially tricky, with transactions spread across multiple protocols, exchanges, wallets, and DeFi platforms. And with the IRS paying extra attention to crypto transactions, keeping clear, accurate, and comprehensive records of your crypto and web3 activity is all the more important.

Rather than spending hours logging everything manually, many investors use portfolio tracking tools and crypto tax software. The right software cuts down on tedious data entry, helps prevent people from reporting the wrong information, and makes tax season far less stressful.

In this guide, we’ll explain how crypto tax reporting software works. We'll also explore six of the best crypto tax software options for 2025 and share strategies to help you choose the right one for tracking your crypto taxes. 

What is crypto tax software?

Crypto tax software helps investors track and organize digital asset transactions while staying compliant with tax laws. These platforms use algorithms to sort different types of crypto transactions and calculate taxable gains and losses in real time.

Many crypto tax tools connect directly to exchanges and wallets, automatically pulling transaction data to minimize errors and save time. Once the data is compiled, users can import it into tax forms, then either share it with a CPA or sync it with tax software like TurboTax and H&R Block for a smoother filing process.

How does crypto tax software work?

Crypto tax software automatically pulls data from linked exchange accounts and wallets to track transactions and taxable events. Once imported, it categorizes activities like buys and sells, transfers, bridges, swaps, staking rewards, and liquidity pools, then calculates capital gains, losses, or taxable income. These platforms also align with and codify local tax regulations to generate federal and state-compliant tax forms, ensuring accurate reporting and filing.

Many crypto tax tools allow users to export data directly to tax software like TurboTax and H&R Block. They may also provide options to share reports with a CPA or connect with a crypto tax professional for personalized guidance.

For example, CoinTracker lets users link APIs from exchange accounts, connect public wallet addresses, and import CSV files, compiling all transactions in one centralized dashboard. CoinTracker also tracks DeFi activity, giving users a comprehensive view of their crypto holdings.

Choosing a crypto tax software: Factors to consider

Not all crypto tax software is built the same. While every platform helps with tax calculations, the best ones go further with direct integrations, high-volume transaction support, and features like automated syncing, established partnerships, and portfolio management tools. Security also matters – platforms like CoinTracker, which holds SOC 1 Type II and SOC 2 Type II certifications, follow strict industry standards to protect user data.

Here’s a closer look at important factors to consider when comparing crypto tax software options:

Integrations and bandwidth

Some crypto tax tools rely on manual data entry, but many now connect directly to exchanges and wallets, making tax tracking much easier. These integrations allow users to see past transactions and current holdings in one place, helping them stay on top of taxable events.

Along with integrations, traders should also think about a platform’s capacity to handle large transaction volumes, especially those involved in high-frequency trading or arbitrage. Those engaged in arbitrage, high-frequency trading (HFT), or algorithmic trading need crypto tax software that can handle large volumes of transactions and accurately calculate gains and losses across multiple platforms.

With connections to over 500 exchanges and wallets and support for 50,000+ cryptocurrencies, and the ability to sync millions of transactions and keep them regularly updated, CoinTracker is built to keep up with even the most active day traders.

Credibility and legitimacy

Unlike crypto itself, tax software isn’t decentralized. These platforms function more like traditional financial tools that offer customer support via phone, email, or live chat to help users navigate their dashboards and file tax forms correctly. Some, like CoinTracker, even provide access to transaction reconciliation experts and professional crypto CPAs for guidance on more complex tax situations.

A platform's partnerships often say a lot about its trustworthiness and reliability. Established partnerships with major wallets, exchanges, and tax platforms are often strong indicators of easy data transfers, greater accuracy, and an overall premium user experience.

For example, CoinTracker allows users to automatically pull their transaction history from over 500 wallets and exchanges and has numerous official partnerships, including with MetaMask, Phantom, and Coinbase. CoinTracker also integrates directly with TurboTax and H&R Block, making it easy to transfer crypto tax details directly into filing software.

Security

Security and data protection are just as important as accurate reporting. SOC 1 and SOC 2 certifications are independent audits that assess how well a company safeguards sensitive data and maintains accurate financial reporting. SOC 1 focuses on internal controls related to financial transactions, ensuring that processes for handling financial data are reliable and free from errors that could affect reporting. SOC 2 evaluates a company’s security, availability, processing integrity, confidentiality, and privacy, verifying that strong measures are in place to protect user data from breaches, unauthorized access, and other risks.

These certifications require ongoing audits, meaning companies must continuously meet high security and compliance standards to maintain them. CoinTracker holds both certifications, demonstrating its commitment to protecting user data.

Legal compliance

Crypto tax regulations are evolving, which is why it’s important to choose a platform that stays ahead of these changes. CoinTracker, built and based in the United States, has a tax team that includes leading experts like Shehan Chandrasekera, a recognized thought leader in crypto taxation. The team actively engages with regulators in Washington, D.C., to stay informed on policy changes and advocate for more taxpayer-friendly regulations.

For U.S. users, compliance with new broker reporting requirements is especially important. The IRS introduced Revenue Procedure 2024-28 (Rev. Proc. 2024-28) to guide taxpayers in transitioning to the per-wallet cost basis tracking method, which became mandatory on January 1, 2025. Previously, the universal method pooled cost basis across multiple wallets, making it harder to determine which wallet a particular cost basis originated from. With the per-wallet approach, cost basis calculations remain tied to individual wallets, which improves accuracy and aligns with the new Form 1099-DA reporting requirements that brokers must follow. While this update enhances transaction clarity, taxpayers must also maintain more detailed records to comply with the latest regulations.

CoinTracker is one of the only platforms that has entirely restructured its technology to support these new regulations. By adhering to Rev. Proc. 2024-28, users can transition their cost basis tracking in a way that guarantees compliance while preserving safe harbor protections from the IRS and future-proofing against regulatory shifts.

Price

Some crypto tax software tools are free, but most platforms use tiered pricing plans to meet different user needs. CoinTracker, for example, offers Base, Prime, and Ultra tiers, each with its own features and transaction limits.

For those just getting started, CoinTracker also has a free plan, giving new users full access to its Portfolio Tracker and a general tax summary at no cost.

Other perks and features

All crypto tax software calculates tax liabilities and generates the necessary forms, but some go beyond the basics to help traders manage their portfolios. One useful feature is tax-loss harvesting, which lets investors offset gains by selling underperforming assets and potentially lowering their tax bill.

Along with tax-loss harvesting, CoinTracker offers non-fungible token (NFT) tracking and DeFi monitoring, making it easier for traders who are active across multiple areas of Web3 to keep their records organized.

How to choose the best tax software for cryptocurrency

With so many crypto tax software options available, choosing the right one might seem easier said than done. When it comes to choosing a platform, the best fit depends on a trader’s specific needs. Here’s what to keep in mind:

• Supported exchanges and wallets: For any crypto tax software to be useful, it needs to integrate with your preferred platforms. Before committing, be sure it supports all the exchanges, wallets, and DeFi protocols that you use.
• Legal compliance: For U.S. taxpayers, the best crypto tax software in the U.S. offers IRS-compliant forms and aligns with state-specific tax rules. If you’re outside the U.S., check whether the platform generates the correct forms for your country’s tax authorities.
• Security and data privacy: Crypto tax software requires sensitive information, from know-your-customer (KYC) details to linked exchange APIs and wallet addresses. Research a provider’s encryption standards, security measures, and reputation to protect your data from potential breaches. 
• Pricing: While accuracy should be the priority, cost is still a key factor. Overpaying for features you don't need will only eat into any potential tax savings.
• User-friendly interface: A good crypto tax tool should simplify the process, not complicate it. Look for a platform with an intuitive layout that makes tracking and reporting transactions as simple as possible.
• Special features: If you’re still torn between platforms, consider any extra perks they offer. The best crypto tax software for NFT traders may not be the best crypto tax software for DeFi, so explore what each platform offers and how it fits your trading habits.

Benefits of using crypto tax software

Here’s a closer look at some of the perks crypto tax software offers:

Saves time

Unless you’ve only made a handful of trades throughout the year, tracking each and every crypto transaction can quickly cause a headache. Even without DeFi loans, staking, or yield farming, it takes time to record cost basis, track transfers, and categorize transactions correctly. Crypto tax software handles this automatically by syncing with your accounts and sorting everything for you.

Reduces errors

Crypto tax calculations are tedious, and mistakes happen easily. Crypto tax software minimizes human error by pulling precise transaction data with timestamps and details and automatically categorizing them. This improves accuracy, simplifies tax returns, and helps investors identify opportunities for tax-loss harvesting, impermanent loss, and overall gains or losses.

Makes compliance easy

Another benefit of crypto tax software is that it automates many processes that you’d otherwise have to do manually. It uses your transactional data to generate important IRS forms like Form 8949, Schedule D, and Schedule C. With all your essential documents prefilled, you'll file more accurately, which lowers the risk of IRS audits or penalties.

6 top crypto tax software options

We’ll be upfront: At CoinTracker, we believe we offer the best crypto tax software. But we also know that every investor has different needs, which is why there are so many options available. Here’s a look at six top crypto tax software platforms to consider:

CoinTracker

More than 2.5 million users trust CoinTracker for a reason – actually, for many reasons. Since launching in 2017, we've been dedicated to making crypto portfolio tracking and tax filing as stress-free of an experience as possible.

With integrations across hundreds of wallets and exchanges – plus support for 50,000+ DeFi smart contracts – our software automatically categorizes transactions, calculates cost basis, and generates IRS-compliant forms. Whether you send your tax data to a CPA, TurboTax, or H&R Block, CoinTracker ensures everything is organized and ready to go.

No matter how you engage with crypto, CoinTracker simplifies tax reporting. Get started with a free account today and see how easy it is to track your digital assets.

Koinly

Since its launch in 2018, Koinly has built a solid reputation among U.K. crypto investors – especially those dealing with DeFi, staking, and lending. Known for its user-friendly interface and detailed tax reports, Koinly supports compliance in 20+ countries and claims to generate tax-compliant forms in less than 20 minutes. New users can take advantage of free crypto tax and profit calculators, along with a complimentary account that includes portfolio tracking, a tax optimization tool, and support for DeFi and NFT trading.

TurboTax

Intuit’s TurboTax has long been a go-to tax software for fiat, and in recent years, it has expanded its offerings to support crypto traders. While it’s not a dedicated crypto tax platform, it features tools like a crypto tax calculator and access to crypto tax experts.

That said, TurboTax works best when paired with crypto-specific tax software like CoinTracker. Since it lacks direct integrations with many exchanges and wallets, traders with more than a few transactions will likely need a specialized tool to generate detailed tax reports before filing through TurboTax.

ZenLedger

ZenLedger is a crypto tax software that offers DIY tax plans, state and federal filing, and access to tax professionals for complex cases. Launched in 2017, it has expanded its integrations with exchanges and DeFi applications and offers detailed audit trails. While its interface isn’t as user-friendly as some alternatives, ZenLedger is a practical choice for traders who need extra help with tax forms or professional guidance.

CoinLedger

Previously known as CryptoTrader.Tax, CoinLedger has focused on providing a simple solution for crypto taxes since its founding in 2018. CoinLedger users generally praise the platform's simple-to-scan dashboard and user-friendly design. CoinLedger also offers several DIY and professional plans – including a free account – to get a sense of its portfolio tracking features before committing.

Simple, stress-free crypto tax reporting with CoinTracker

No matter how you engage in the crypto market, CoinTracker helps take the stress out of tax season. Our easy-to-use platform lets you link exchange accounts and wallets for a real-time view of your transactions. When it’s time to file, CoinTracker organizes your data into IRS-compliant forms, ready for a CPA or tax software like TurboTax and H&R Block.

Sign up for a free CoinTracker Portfolio Tracker account and see how simple managing crypto taxes can be.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.