Free Tool
Mining Tax Calculator
Calculate taxes on your crypto mining income. See how hobby vs business classification affects your deductions.
Hobby mining: Limited deductions, simpler reporting. Best for casual miners.
Hobby mining: taxed as income. Business mining: self-employment tax applies, but more deductions available.
Mining Income
Deductible Expenses
Business OnlyMonthly or annual electricity for mining
Annual depreciation on mining hardware
Portion used for mining
Cooling, rent, repairs, etc.
In most countries, hobby miners cannot deduct expenses against mining income. Your gross mining income is typically taxed in full. Consider registering as a business if your expenses are significant.
Understanding Mining Taxes
When Mining is Taxed
Mining income is typically taxed when you receive the coins, based on their fair market value at that moment. This creates a taxable event even if you don't sell.
Equipment Depreciation
Business miners can depreciate mining hardware over time. In the US, Section 179 may allow immediate expensing of equipment costs in the year of purchase.
Record Keeping
Track every block reward with date, amount, and fair market value. Keep receipts for all expenses. Good records are essential for maximizing deductions.
Mining Multiple Cryptocurrencies?
This calculator handles simple estimates, but real mining operations need professional tax software that tracks every transaction automatically.
Supports all major mining pools. Automatic cost basis tracking.