NFTs are taxable in most countries. Whether you buy, sell, create, or receive an NFT, there are tax implications.
Here’s exactly how NFT taxes work in the US, UK, and Canada.
When NFTs Are Taxable
NFT Activity
Taxable?
Type of Tax
Selling NFT for profit
Yes
Capital gains
Buying NFT with crypto
Yes
Crypto disposal
Buying NFT with fiat
No
N/A
Receiving NFT as gift
No
Until you sell
Minting NFT (gas fees)
No
Not deductible (personal)
Creating and selling NFT
Yes
Income + capital gains
NFT Taxes by Country
United States
Rule
Details
IRS treatment
Property (not currency)
Collectibles rate
Up to 28% (higher than stocks)
Short-term
10-37% ordinary income
Long-term
0-20% + 3.8% NIIT
Reporting
Form 8949 + Schedule D
State tax
Applies in most states
The 28% collectibles rate: NFTs are classified as “collectibles” by the IRS, which means the maximum long-term capital gains rate is 28% — higher than the 20% maximum for stocks.
