The IRS is paying closer attention to cryptocurrency than ever before, and the rules are
changing in 2026. If you have invested in crypto, you might be wondering what this all means
for your taxes, and it’s understandable if it feels a bit overwhelming. Don’t worry, you are not
alone. In this blog, we will walk you through the key IRS crypto tax rules, explain how different
activities like trading, staking, and NFTs are treated, and give you a clear picture of what you
need to know to stay on top of your taxes.

Entering the New Era of Crypto Taxes

By 2026, cryptocurrency taxation in the United States has become more structured and closely
regulated. As digital assets continue to grow in adoption, the IRS has expanded reporting
requirements and enforcement tools to improve compliance. Investors involved in crypto trading,
staking, NFTs, and decentralized finance must understand how these activities are treated under
current tax rules.Investors involved in crypto trading, staking, NFTs, and decentralized finance must
understand how these activities are treated under current tax rules

Upcoming IRS Reporting Requirements

The IRS has increased oversight of cryptocurrency transactions through expanded third-party
reporting. Crypto exchanges and brokers are now required to report more detailed transaction data,
which is shared directly with the IRS and investors.
Key developments include:
Enhanced reporting of crypto sales, swaps, and income
Improved data matching between tax returns and blockchain activity
Continued mandatory disclosure of digital asset activity on individual tax returns
These measures reduce underreporting and make accuracy in crypto tax filings increasingly
important.

Cost Basis Tracking for Multiple Wallets

Cost basis tracking is a major compliance focus in 2026. Investors must maintain accurate cost basis
records across multiple wallets and exchanges, rather than combining transactions into a single pool.
This affects:
Transfers between personal wallets
Assets moved across centralized and decentralized platforms
Long-term holdings stored in multiple locations
Incorrect cost basis calculations can lead to inaccurate capital gains reporting and potential IRS
inquiries.
For a deeper look at how to track cost basis across multiple wallets, you can read our detailed guide
on iris to require separate cost basis tracking for multiple wallets starting in 2025.

How Staking & NFTs Are Taxed

The IRS considers many blockchain activities to be taxable events.

Staking

• Staking rewards are generally taxed as ordinary income when received
• The value at receipt becomes the cost basis for future sales

NFTs

• Income from selling or trading NFTs is taxable
• NFT royalties are treated as ordinary income
• Certain NFTs may be classified as collectibles, depending on their characteristics

Proper classification and valuation are necessary for accurate reporting.

International Crypto Tax Updates: DAC 8 in the EU

The IRS isn’t the only tax authority tightening crypto rules. Across the Atlantic, the European Union is
introducing major reporting changes through The Directive on Administrative Cooperation (DAC 8),
which will come into effect in 2026. This directive requires EU (European Union) member states to
collect detailed information about crypto asset transactions, making international crypto reporting
more transparent.

Under DAC 8, entities providing crypto services like crypto exchanges, wallet providers, or staking
platforms must report both their own information and detailed data about their customers. This
includes:

• Customer names, addresses, tax IDs, and in some cases dates of birth
• Details of crypto transactions, including amounts, types of tokens, and number of transactions
• Reporting on a wide range of crypto services, from custody and trading to lending and staking

DAC 8 applies to both crypto asset service providers (CASPs) and crypto asset operators (CAOs),
covering transactions with fiat currency, other crypto assets, and transfers between wallets. Even if a
customer has multiple wallets, each reportable transaction must be tracked and reported.

For crypto investors, the takeaway is clear: international tax authorities are increasingly sharing
information. Whether you trade in the US or Europe, maintaining accurate records of all transactions
including staking, NFTs, and cross-border transfers is essential to stay compliant.

Tips for 2026: Stay Ahead with Your Crypto Taxes

Even if you only trade crypto from time to time, staying informed and organized is key. Casual traders
can still gain a lot from smart tax strategies. Here are some practical tips to help you sail smoothly
through the world of crypto taxes:

1. Keep detailed records: Track every transaction, transfer, and staking reward across all wallets
   and exchanges.
2. Use crypto tax software: Leverage platforms that integrate with multiple wallets and exchanges
   to automate cost basis calculations and reporting.
3. Separate long-term and short-term holdings: Understanding the difference can help optimize
   Your capital gains tax.
4. Report staking rewards promptly: Since these are taxed as ordinary income, reporting them
   accurately helps avoid surprises at tax time.
5. Stay updated on global regulations: If you hold or trade crypto internationally, keep an eye on
   Rules like DAC 8 in the EU are designed to avoid cross-border compliance issues.
6. Consult a crypto tax professional: Complex transactions like NFTs, DeFi, and cross-chain
   Transfers may require expert guidance.
   Following these steps now can save time, reduce errors, and give you peace of mind during tax
   season.

Conclusion & Final Thoughts

Crypto taxes in 2026 are tighter and more organized than ever, so staying on top of them is a must if
you are investing. Whether you are trading, staking, or dabbling in NFTs, keeping good records and
understanding how the IRS views each activity can save you from headaches and penalties later.

With reporting systems getting smarter every year, the best strategy is simple: plan, report
consistently, and keep your documents clear and up to date. By staying one step ahead of the rules,
you can focus on growing your crypto portfolio without worrying about unexpected tax surprises.