Crypto Tax on Gains in 2026: A Comprehensive Guide to Israel, the U.S., and Europe
Crypto Tax on Gains in 2026: A Comprehensive Guide to Israel, the U.S., and Europe
As the crypto market matures and attracts investors from around the globe, understanding tax obligations has never been more critical. In 2026, the three major legal jurisdictions â Israel, the United States, and the European Union â are all enforcing new and stricter rules. This article consolidates the key regulations in each region, with a focus on changes that took effect this year.
Thank you for reading this post, don't forget to subscribe!Israel: Classified as an “Asset” with a 25% Tax Rate
The Israel Tax Authority classifies digital currencies as “assets” for tax purposes, not as foreign currency. This means that profits from selling crypto are subject to a 25% capital gains tax. However, if trading activity is classified as a business â for example, in the case of intensive day trading â the income may be treated as business income and taxed at marginal income tax rates, which can reach up to 50%.
A significant development in 2026 is the voluntary disclosure procedure published by the Israel Tax Authority in August 2025, which remains in effect until August 2026. The procedure allows investors who failed to report crypto gains in the past to settle their obligations under favorable terms. Additionally, a bill to exempt foreign residents from capital gains tax on crypto sales passed its first reading in the Knesset â a move designed to attract activity to Israel.
United States: A Complex Tax System with New Reporting Rules
The Internal Revenue Service (IRS) treats crypto as “property” for tax purposes. Tax rates depend on the holding period: short-term gains (held for one year or less) are taxed as ordinary income, at rates up to 37%. Long-term gains (held for more than one year) benefit from reduced rates of 0%, 15%, or 20%, depending on income level.
The most significant change in 2026 is the new reporting requirement: starting January 2026, all major U.S. crypto exchanges are required to report gains and losses to the IRS using Form 1099-DA. The cost basis reporting obligation took effect for transactions executed from January 1, 2026. This change makes tax evasion considerably harder, as the IRS now receives information directly from exchanges.
Taxable events include selling, converting between currencies, using crypto for purchases, and receiving mining or staking rewards. Reporting is done via Form 8949 and Schedule D.
Europe: DAC8 and MiCA Are Changing the Rules of the Game
The European Union launched the DAC8 directive on January 1, 2026 â a move that fundamentally transforms tax transparency for crypto in Europe. The directive requires all Crypto-Asset Service Providers (CASPs) to automatically report user transaction data to tax authorities, including identity, portfolio value, and all transactions.
DAC8 works in coordination with the MiCA (Markets in Crypto-Assets) regulations, which are now fully in effect. While MiCA focuses on licensing and operational standards, DAC8 focuses on tax reporting. Starting July 1, 2026, crypto companies that fail to meet reporting requirements face fines. Non-compliance can even lead to seizure or confiscation of crypto assets linked to unpaid taxes.
As for tax rates, they vary from country to country: Germany exempts gains on crypto held for more than one year, Portugal imposes a 28% tax on short-term gains, and France levies a 30% flat tax on crypto profits.
Summary and Recommendations
The year 2026 brings a new level of transparency and enforcement from tax authorities worldwide. The days when crypto tax obligations could be ignored are over. The recommendation for investors is to document every transaction in real time, use dedicated crypto tax calculation software, and consult an accountant who specializes in digital assets. In Israel especially, the voluntary disclosure window closing in August 2026 represents a final opportunity to settle under preferential terms.
Read more crypto news:
- Hebrew: coindex.co.il
- Portuguese: coindice.com.br
This content is for informational purposes only and does not constitute financial advice.
Open your MEXC digital wallet and get exclusive deposit bonuses. Over 1,700 digital currencies available!
🔗 Open a Free MEXC AccountAffiliate link • Sign up in seconds
