How to calculate crypto taxes from Binance

Binance users must track and report taxable crypto events like trades, sales, and staking income, as cryptocurrencies are treated as property and subject to capital gains or income tax.

Aug 08, 2025 at 07:56 am

Understanding Cryptocurrency Taxation on Binance

Calculating crypto taxes from Binance requires a clear understanding of how tax authorities classify digital assets. In most jurisdictions, including the United States, cryptocurrencies are treated as property for tax purposes. This means every time you trade, sell, or use crypto, it may trigger a taxable event. Binance, being one of the largest exchanges, does not automatically report your transactions to tax authorities, so it is your responsibility to track and report them accurately. The key is identifying which transactions are taxable and which are not. For example, buying crypto with fiat currency is typically not a taxable event, but selling or swapping one cryptocurrency for another usually is.

Identifying Taxable Events on Binance

To calculate your taxes correctly, you must first recognize all taxable events that occur on Binance. These include:

• Selling cryptocurrency for fiat currency, such as converting BTC to USD
• Trading one cryptocurrency for another, like exchanging ETH for BNB
• Using crypto to purchase goods or services
• Receiving crypto as income, such as from staking, referral bonuses, or airdrops
  Each of these actions may result in capital gains or losses or be classified as ordinary income, depending on the nature of the transaction. For instance, if you bought 1 BTC for $30,000 and later sold it for $40,000, you have a capital gain of $10,000. This amount must be reported on your tax return.
  

  Exporting Transaction History from Binance

  
  To begin calculating your taxes, you need a complete record of your transactions. Binance allows users to export their trade history, which is essential for tax reporting. Follow these steps:
• Log in to your Binance account
• Navigate to the [Orders] section and select [Trade History]
• Choose the relevant time period and click [Export]
• Select the format (CSV is recommended for tax software)
• Confirm the export request via email or 2FA
  Additionally, you may need to export data from other sections:
• [Wallet] > [Transaction History] for deposits, withdrawals, and internal transfers
• [Earnings] for staking rewards, referral income, or launchpad allocations
  Ensure all data is accurate and covers the entire tax year. Missing transactions can lead to underreporting and potential penalties.
  

  Using Crypto Tax Software to Process Binance Data

  
  Manually calculating gains and losses across hundreds of transactions is error-prone. Most users rely on crypto tax software such as Koinly, CoinTracker, or CryptoTaxCalculator. These platforms support Binance integration and can automate much of the process. To use them:
• Create an account with your preferred tax software
• Connect your Binance account via API or upload CSV files

• If using API, generate API keys in Binance:

  • Go to [User Center] > [API Management]
  • Click [Create API]
  • Assign a name and enable [Enable Reading]
  • Copy the API key and secret
  • Paste them into the tax software
    Once connected, the software will import your trades, calculate cost basis, proceeds, and capital gains using your country’s tax rules. It will also categorize income from staking or airdrops. Ensure the software applies the correct accounting method—FIFO (First In, First Out), LIFO (Last In, First Out), or specific ID—depending on your jurisdiction’s requirements.
    

    Calculating Capital Gains and Losses Manually

    
    If you prefer not to use software, you can calculate taxes manually using a spreadsheet. Start by listing every taxable transaction in chronological order. For each trade or sale:
• Identify the date of acquisition (when you bought or received the crypto)
• Record the purchase price in fiat (including fees)
• Note the date of disposal (when you sold or traded it)
• Record the sale price in fiat (market value at time of transaction)
• Subtract the cost basis from the proceeds to determine gain or loss
  For example:
• You bought 0.5 ETH on January 10 for $1,500 total
• On June 15, you traded it for 100 BNB when ETH was worth $2,000
• Your capital gain is **$500** ($2,000 - $1,500)
  Include transaction fees in both purchase and sale calculations to ensure accuracy. Fees increase your cost basis and reduce proceeds, which can lower your taxable gain.
  

  Reporting Income from Staking, Airdrops, and Rewards

  
  Binance offers various earning opportunities, including staking, launchpool rewards, and referral bonuses. These are generally considered taxable income at the time you receive them. The amount to report is the fair market value in USD when the crypto is credited to your account. For example:
• You receive 0.1 BNB from staking on March 5
• On that date, BNB is worth $300
• You must report $300 as ordinary income
  This income is separate from capital gains. If you later sell that 0.1 BNB for $350, you’ll have a **capital gain of $50**. Keep detailed records of each reward transaction, including dates and values, to support your tax filings.
  

  Frequently Asked Questions

  
  Does Binance provide a tax report?
  No, Binance does not generate tax reports. You must use your transaction history and third-party tools or accountants to prepare your tax documents. While Binance provides CSV exports and API access, it does not calculate gains, losses, or income for you.
  

  What if I made trades between two cryptocurrencies? Is that taxable?
  
  Yes, trading one crypto for another is a taxable event in most countries. It is treated as selling the first cryptocurrency and immediately buying the second. You must calculate the capital gain or loss based on the USD value at the time of the trade.

  How do I handle Binance fees in tax calculations?
  
  Transaction fees should be included in your cost basis when buying and subtracted from proceeds when selling. For example, if you pay $5 in fees to buy BTC, add that to your cost. If you pay $5 to sell BTC, subtract it from the sale amount. This reduces your taxable gain or increases your deductible loss.

  Can I use the Binance API to sync all my data automatically?
  
  Yes, the Binance API allows tax software to pull your complete trade and transaction history automatically. Ensure you enable only the reading permission and never grant withdrawal rights. This method is more reliable than manual CSV uploads and ensures no data is missed.