How Crypto Airdrops Are Taxed in 2025–2026
If you woke up to a few hundred UNI, a bunch of BONK, or 500 ARB in your wallet, congratulations. The taxman just got a new line item. Here’s exactly how airdrops are taxed right now in every major jurisdiction.
The One Rule That Destroys Most People’s Gains
In 2025, receiving an airdrop is almost universally treated as ordinary income at fair market value the moment you can sell or transfer it, even if you never touch it.
Zero exceptions in the US, UK, Canada, Australia, or most EU countries. The only debate left is the exact valuation date.
United States (IRS Position – 2025 Filing Season)
The IRS has been crystal clear since Revenue Ruling 2023-14 and the 2024 Chief Counsel memos:
- Airdrop received → ordinary income at FMV on the exact date you gain dominion and control (i.e., can sell or move it).
- Later sale of the airdropped tokens → separate capital gain/loss event (cost basis = the income you already paid tax on).
- Example: You get 1,000 ARB when it’s $1.20 → $1,200 ordinary income in that year. You sell a year later at $3 → $1,800 long-term capital gain.
Common airdrops that triggered surprise tax bills in the last 18 months
- Arbitrum (ARB) – March 2023
- Celestia (TIA) – October 2023
- Jito (JTO) – December 2023
- Jupiter (JUP) – January 2024
- Starknet (STRK) – February
- 2024 EigenLayer (EIGEN) – October 2024
- Hyperliquid points → HYPE – November 2024
If you claimed any of these, you already owe ordinary income tax on the FMV at claim time — even if you’re still holding.
Rest of the World – 2025 Rules
United Kingdom
HMRC treats airdrops as miscellaneous income → taxed at your marginal rate (20–45%).
Canada
100% taxable as income (50% if you can argue capital treatment, but CRA almost never allows it).
Australia
ATO says airdrops are ordinary income unless you’re running a business (then business income).
Germany
Income the moment received if you’re a private individual. Hold >1 year and sell → possible 0% capital gains (but you still paid income tax on receipt).
France
30% flat tax (PFU) or progressive scale + social charges on receipt.
The Most Expensive Airdrop Tax Traps
- Thinking “I didn’t claim it” saves you → wrong. If tokens appeared in your wallet and you could move them, you have income.
- Using the $0.0001 price 30 seconds after listing → IRS and most countries use a reasonable trading price within the first few hours.
- Forgetting Layer-2/points airdrops (EigenLayer, Blast, Hyperliquid) → points converted to tokens = income at conversion.
- Selling the same year and not adding the income amount to your cost basis → double taxation nightmare.
How to Legally Pay Less Tax on Airdrops
- Claim and immediately sell a portion to cover the tax bill (most pros do this).
- If you’re in Germany or Portugal (pre-2023 NHR), hold >1 year after paying the initial income tax → possible 0 % on the gain.
- Charitable donation of airdropped tokens → deduct FMV and avoid the later capital gain.
- Move to Puerto Rico (Act 60) before the snapshot if you’re planning big.
Starting January 2026, every major chain and project that does an airdrop will be required to report the FMV and wallet addresses under OECD CARF and US 1099-DA rules. The days of “I never saw that airdrop” are officially over.
Bottom Line
Airdrops are the sneakiest tax bomb in crypto. Most people pay 30–50% effective tax on the full value within the first year — even if the token later goes to zero.
We’ve fixed hundreds of six- and seven-figure airdrop messes (Arbitrum whales, Jito farmers, EigenLayer restakers, Hyperliquid degens, you name it).
Click the button below and we’ll tell give you a free quote on your crypto taxes and how much we can legally save you. Fixed fee, no surprises, no sharing your private keys.
