Is gifting crypto taxable?

Whether gifting crypto is taxable depends on the country and on who receives it. In the United States, a gift of crypto is not treated as a sale, though large gifts trigger paperwork. In the UK, giving crypto away usually counts as disposing of it, so a gain can be taxed.

How is crypto taxed as a gift in the US?

The IRS says that if you receive crypto as a bona fide gift, you do not have income until you sell, exchange or otherwise dispose of it. The tax question moves to the recipient's later sale, as explained in do you pay tax on crypto if you don't sell.

Any gift tax is generally the giver's responsibility, not the recipient's. Gifts to a spouse who is a US citizen are generally excluded.

What is the gift tax annual exclusion for crypto?

There is no separate crypto rule. The IRS annual exclusion is $19,000 per recipient for both 2025 and 2026, or $38,000 when spouses give jointly owned property together.

For 2025 gifts, the Form 709 instructions say a US citizen or resident generally must file a gift tax return if gifts to one person, other than a spouse, totaled more than $19,000. The return was due April 15 of the following year.

Filing does not usually mean paying. Gifts above the annual amount count against a lifetime exclusion, which the IRS says rose to $15 million for gifts made in 2026.

What is the cost basis of gifted crypto?

Under the IRS rules, the recipient generally takes over the giver's cost basis, plus any gift tax the giver paid, when working out a gain. When working out a loss, the basis is the lower of the giver's basis and the value on the day of the gift.

Records matter. The IRS says that if you cannot document the giver's basis, your basis is zero. The holding period also carries over from the giver if it can be documented.

Can you gift crypto tax free in the UK?

Only in some cases. HMRC treats giving tokens to another person as a disposal for Capital Gains Tax, and the giver is treated as receiving their sterling value even though nothing was paid. Gifts to a spouse, civil partner or charity are the exceptions, as the UK crypto tax guide explains.

Gains on gifts are added to the giver's other gains for the year. For 2026 to 2027, the first £3,000 of total gains is tax-free.

Inheritance Tax is separate. GOV.UK says gifts are generally free of it if the giver lives for 7 years afterwards, and each person can give away £3,000 a year without it being added to their estate. Rules elsewhere vary, as crypto tax around the world shows.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.