Key Takeaways
- Selling, swapping, spending crypto, and earning rewards on Binance can be considered taxable events;
- Binance provides downloadable transaction history, account statements, and other reports that form the basis of your tax filing;
- Always check your local tax rules, and when in doubt, consult a professional to ensure your Binance taxes are filed correctly.
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.jpg "Binance Taxes in 2025: A Complete Guide")
With all the assets and features on Binance, it’s easy to get swept up in the excitement of trading. But sooner or later, you know the government will knock on your door to collect its dues. Filing Binance taxes may not be thrilling, but knowing how it works prepares you to greet the inevitable like an old friend.
Every trade, every reward can add up when tax season arrives. Binance may not handle everything for you, but it does give you the documents you need. It’s up to you to turn that data into something the tax office understands.
So let’s prepare ourselves for what’s coming and finish the year with a smile.
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Table of Contents
- 1. Why Binance Taxes Matter
- 2. Understanding Taxes on Binance
- 2.1. How Binance Trades Are Taxed
- 2.2. Taxable and Non-Taxable Activities
- 2.3. Types of Binance Tax Reports
- 2.4. Reporting Gains, Losses, and Rewards
- 3. How to Do Taxes with Binance
- 3.1. How to File Binance Taxes (Global Users)
- 3.2. How to File Taxes on Binance US
- 3.3. Using Binance with Tax Software
- 4. Common Tax Filing Mistakes to Avoid
- 5. Conclusions
Why Binance Taxes Matter
Before we get into the details about Binance tax reports, forms, and all that, it’s important to set the right expectations.
Latest Changelly Coupon Found:Crypto taxes aren’t one-size-fits-all. They can get pretty complicated depending on where you live, how you trade, and how your local authorities treat digital assets.
What’s taxable in the US might be treated very differently in places like the UK, Canada, or Australia. Some countries have clear crypto tax rules, while others are still figuring them out.[1]
Because of that, treat this guide as a starting point and not a final verdict. You’ll get a breakdown of what Binance provides, which activities usually trigger taxes, and how to prep your records. But it’s still on you to do thorough research into your local laws before auditing your crypto transactions.
.jpg "Binance taxes: tax return form, dollar banknotes, gavel, pen and calculator.")
If you’re unsure, check your local tax authority’s guidelines or, even better, talk to a tax professional who knows crypto. It might take some extra effort (and maybe some cost), but it could save you from way bigger problems later on.
📚 Check Out: US Crypto Regulations
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Understanding Taxes on Binance
Before you start crunching numbers or downloading reports, it’s important to understand how taxes apply to your activity on Binance.
Not every action you take on an exchange triggers a tax bill. And keep in mind that crypto tax rules vary depending on where you live. What’s considered income or a capital gain in one country might be tax-free in another.[2]
Binance may offer helpful tools like transaction histories and tax reports, but it won’t do the hard part for you. You still need to know what triggers a taxable event, what doesn’t, and how Binance US rules might differ from the global version.
So before diving into the filing process, let’s cover the essentials you’ll want to keep in mind.
How Binance Trades Are Taxed
Depending on your country’s rules, every trade you make on Binance could be a taxable event. In the US, for example, the IRS treats crypto as property, so trading one coin for another is seen as selling one asset to buy another, even if you never convert them to fiat currency.
The same rule applies when you sell crypto for cash. If the selling price is higher than what you originally paid, that’s counted as a capital gain. If it’s lower, it’s considered a capital loss.
Let’s say you bought ETH for $1,000 and later exchanged it for $1,500 worth of BTC. That $500 gain is realized, and it’s considered taxable. That’s why tracking your cost basis is key to reporting your Binance taxes accurately.
Taxable and Non-Taxable Activities
Trading isn’t the only way taxes can come into play, though. On Binance, everyday actions like earning rewards or swapping tokens can also trigger taxable events, while others, such as transferring funds between your wallets, are typically not taxable.
Here’s a quick overview of which activities are usually taxable and which aren’t:
Taxable | Non-Taxable |
|---|---|
Selling crypto for cash | Transferring between wallets |
Swapping coins | Buying and holding crypto |
Earning rewards | Donating to non-profits |
Receiving payment in crypto | Gifting under annual limits |
Spending crypto | Holding crypto |
Receiving airdrops | - |
Table: Taxable VS non-taxable crypto activities
Now, let’s break these down with simple explanations and examples, starting with the taxable events:
- Selling crypto for cash. This is treated like selling property. If you bought BTC at $100,000 and sold it at $110,000, the $10,000 profit is taxable.
- Swapping coins. Converting one crypto to another, like XRP to BNB, is considered disposing of the original asset. Any gain or loss on XRP is taxable.
- Earning rewards. Staking rewards, referral bonuses, or similar incentives are taxed as income based on their fair market value at the time you receive them.
- Receiving payment in crypto. If a client pays you in something like USDT, that’s taxable income just like being paid in dollars.
- Spending crypto. Using crypto to buy services or goods (like a laptop or phone) counts as a sale. If the value has increased since you got it, you may owe capital gains tax.
- Receiving airdrops. Free tokens from an airdrop are taxed as income at the time you gain control over them.
As for the non-taxable events, here's the breakdown:
- Transferring crypto. Sending crypto between wallets or exchanges, like moving ETH from Binance to your personal wallet, isn't a taxable event.
- Buying crypto. Simply purchasing and holding crypto like BTC doesn’t trigger taxes until you sell, trade, or spend it.
- Donating crypto. Contributions to registered nonprofits are treated as charitable gifts and may even qualify for tax deductions.
- Gifting crypto. Gifting crypto is also non-taxable (in some cases, at least). For example, in the US, gifts under $18,000 in 2024 (or $19,000 in 2025) don't require a gift tax return.
- Holding crypto. Just holding coins in your wallet (whether it's a hot wallet like Binance Wallet or a hardware wallet like Ledger Flex) isn't taxable unless you sell, swap, or spend them.
Keep in mind, these are general examples of how crypto activities are treated in most tax systems. The exact rules can differ depending on your country or even your state. Again, always check local guidance to know what applies in your situation.
Types of Binance Tax Reports
Not all Binance users see the same reporting options. What you get depends on whether you’re using the global version of Binance or Binance US.
📚 Check Out: Binance US VS Binance
Binance
If you’re a non-US user, chances are you’re on the global Binance platform. It’s the version most traders around the world rely on, and the steps for handling your taxes look a little different here.
Since the Binance Tax Tool is no longer available, you’ll need to use the Transaction History feature to access your raw data for tax reporting. This section gives you a complete view of your activity across the platform, including:
- Transaction records;
- Deposit history;
- Withdrawal history;
- Referral records.
You can also download account statements and financial reports for monthly or yearly snapshots of your balances and activity. Combined, these files should give you everything you need to calculate gains, income, and expenses.
Binance US
If you’re using Binance US, your tax tools are found in the Tax Statements portal. Here, you can generate customizable reports filtered by asset, transaction type, and date range. Reports can be exported in CSV or PDF format for easy tracking.
Depending on your activity and eligibility, Binance US may also provide the following official IRS-recognized tax forms:
- Form 8949. This form is used to report sales and exchanges of crypto treated as capital assets. It shows the details of each trade and whether it produced a gain or a loss.
- Form 1040. This form summarizes your total capital gains and losses for the year. It works alongside Form 8949 to complete your return.
- Form 1099-MISC. This form is issued if you earn $600 or more from staking or referral rewards in a year. Binance US provided it through 2023 for eligible accounts.
- Form 1099-DA. This form will replace 1099-MISC starting with 2025 transactions. It reports the gross proceeds of digital asset sales, and unlike 1099-MISC, there’s no $600 threshold.
These reports won’t complete your Binance US tax return for you, but they give you the essential data you’ll need. So I’d suggest keeping your exports organized and up to date throughout the year, since that’ll save you a ton of stress when tax season arrives.
Reporting Gains, Losses, and Rewards
Once you have your Binance reports, the next step is working out your gains and losses. Most tax authorities expect you to compare the value you received when disposing of crypto against your cost basis (what you originally paid plus any fees). The gap between those numbers is what determines whether you made a profit or took a loss.
Here’s a simple example:
You bought 1 ETH for $3,000 and later sold it for $4,000, giving you a $1,000 profit. If instead you sold at $2,500, that $500 drop would count as a capital loss.
How gains and losses are calculated depends on the accounting method you use to match transactions. Here are some of the most common:
Method | Explanation |
|---|---|
FIFO (First In, First Out) | You sell the coins you bought first. |
LIFO (Last In, First Out) | You sell the most recently acquired coins first. |
HIFO (Highest In, First Out) | You sell the coins with the highest purchase price first. |
Table: Crypto tax accounting methods
These methods apply to capital gains and are generally allowed in the US (as long as your records are accurate, that is). Other countries may have different rules. For instance, the UK uses share pooling, while Canada uses the adjusted cost base method.
Well, again, it’s best to check your local tax authority’s guidance or consult a tax advisor to make sure you’re fully compliant.
How to Do Taxes with Binance
Filing crypto taxes through Binance starts with the same foundation: collecting your transaction history and turning it into usable reports. From there, the path branches depending on where you live and how you want to handle the process.
Global users can manually export their Binance transactions. US users might receive IRS forms directly from Binance US. And no matter where you're based, you can connect your account to a third-party tax app to automate the process.
With that covered, let’s walk through the different ways to file your Binance taxes depending on your location.
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How to File Binance Taxes (Global Users)
For global users, filing Binance taxes starts with downloading your transaction history. The platform gives you access to reports and account summaries, but it’s up to you to organize that data and apply your country’s tax rules.
- Time Range. Choose a preset or set a custom range (up to 12 months per report).
- Account. Select all or narrow it to a specific sub-account.
- Coin. Export all tokens or filter by a specific one.
After setting your filters, click [Generate] to create the report.
You can choose your time period, format (PDF or Excel), and any extra details you want included.
.jpg "Binance taxes: export your order history.")
When ready, click [Export] to download the file.
You can follow the same process in the Futures Order section if you need to export your derivatives trading history.
Set the date range, select your account, create a file password for the PDF, and optionally add a recipient email.
When ready, click [Export] to generate the file.
Once you’ve filed for the year, I suggest making it a habit to export your Binance tax reports regularly so you’re always ready when the next tax season comes.
How to File Taxes on Binance US
If you’ve ever wondered, “Does Binance US report taxes?”, the short answer is yes – but only in part. It does send certain forms to the IRS when required, but it’s still your job to file a full return using all your crypto activity.
Note that I’m using the Binance US mobile app for this example, but the steps are pretty much the same if you’re using a desktop.
For this example, I’ll go with [Tax Reports].
Wait while the system processes your request, as reports may take up to 24 hours to generate.
You can generate a maximum of 10 custom reports per account per month.
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Using Binance with Tax Software
At this point, you might be wondering if there’s a simpler way to handle all this. Fortunately, there is.
If you’d rather avoid doing everything manually, Binance lets you connect your account to a crypto tax calculator. This integration automates the process by syncing your transactions through an API, making it easier to generate ready-to-file reports.
📚 Check Out: Best Crypto Tax Calculator
Here’s how to set it up:
.jpg "Binance taxes: go to API management section on your account.")
Only share your Binance API keys with trusted platforms. These keys provide read-only access to your data.
Using crypto tax calculators can make the process a lot easier. Just remember, the software does the heavy lifting, but it’s still up to you to review everything and make sure it’s accurate before filing your return.
Common Tax Filing Mistakes to Avoid
Even experienced traders can make errors when filing their Binance taxes. Catching these mistakes early can save you time, stress, and possibly money. Here are some of the most common pitfalls to watch out for:
- Overlooking trading fees. A lot of traders forget to include fees when calculating gains or losses. Every Binance transaction comes with a fee, and skipping it can mess up your cost basis. Always factor in all fees to keep your numbers accurate.
- Skipping rewards. Staking rewards, referral bonuses, and airdrops count as taxable income the moment you receive them. You need to report their fair market value at that time. Ignoring this can lead to underreporting and possible penalties.
- Messy or missing records. Don’t rely solely on a single exchange report. If you're trading across platforms or earning rewards elsewhere, all of that needs to be tracked. Missing records can throw off your filing and cause headaches down the line.
- Misunderstanding tax forms. Forms like 1099-MISC or 1099-DA from Binance US don’t always show the full picture. Discrepancies can happen, so it’s important to compare these forms with your own transaction records and make adjustments if needed.
- Blind trust in tax software. Tax calculators are helpful, but they’re only as good as the data you provide. If your activity is complex, the tool might miss something. Always review your generated reports carefully before filing.
If things start to get messy (which they often do), don’t hesitate to bring in a tax professional. It’s a small step that can save you a lot of stress, and potentially, a lot of money down the line.
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Conclusions
Filing taxes on Binance doesn’t have to be overwhelming. With a bit of organization (exporting reports, tracking taxable events, and using the right cost-basis method), you can keep the process more manageable and avoid the stress that comes with last-minute prep.
Whether you’re using Binance globally or in the US, keeping clean, accurate records makes all the difference. And if your activity starts to get complicated, it’s worth checking in with a tax professional. The small investment in advice now can save you from much bigger problems later.
Once that’s out of the way, you can focus on what really matters: exploring, trading, and building your crypto journey with Binance!
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Lazea G.-I., Balea-Stanciu M.-R., Bunget O.-C., Sumănaru A.-D., Coraș A.-M.-G.: ‘Cryptocurrency Taxation A Bibliometric Analysis and Emerging Trends’;
2. Huizinga H., Voget J., Wagner W.: ‘Capital Gains Taxation and the Cost of Capital Evidence from Unanticipated Cross-Border Transfers of Tax Base’.
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