Topic · Taxes and estates
Are staking rewards taxable?
- Quick fact 1
IRS Revenue Ruling 2023-14 says cash-method taxpayers include staking rewards in gross income in the year they gain dominion and control.
Source: IRS Revenue Ruling 2023-14: staking rewards (Jul 31, 2023)
- Quick fact 2
The income amount is the fair market value of the rewards when received.
Source: IRS Revenue Ruling 2023-14: staking rewards (Jul 31, 2023)
- Quick fact 3
The IRS treats digital assets as property.
Source: IRS: Digital assets
The short lesson
If you stake crypto and receive rewards, the IRS has an answer: in Revenue Ruling 2023-14 it said staking rewards are income.
When
For most individuals, in the tax year you gain dominion and control, meaning you are able to sell, trade or otherwise move the rewards.
How much
The fair market value in U.S. dollars at the time you gain that control.
And later
That value becomes your cost basis in the rewards. If you later sell or swap them, you may have a capital gain or loss from that point.
Record-keeping tips
- Note each reward’s date, amount and dollar value.
- Save statements from any staking service.
- Rewards can come often and in small amounts, so tracking software or exports help.
Education only. Tax rules can change; confirm with a tax professional.
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More in Taxes and estates
Common questions
Are staking rewards taxed when I sell?
They are income when you gain control, and a later sale can also create a gain or loss.
What if the reward is locked?
The ruling ties timing to dominion and control. Ask a tax professional about lockups.
Does this apply to all countries?
No. This is U.S. federal guidance.
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Written and reviewed by Joshua Baskin, founder. Last reviewed . How we check facts · Report an error
Education only. Not investment, tax or legal advice. We do not pick coins.