Complete Guide to Declaring your Bitcoin 2026

Crypto taxes on Bitcoin: You’re in the right place

Filing cryptocurrency taxes can feel overwhelming. The regulations are unclear, and official guidance often fails to answer all the important questions.

Meanwhile, the Tax Office is gaining more and more access to data from crypto exchanges and even on-chain activity on networks like Bitcoin. A growing number of exchanges and service providers are now required to share information about your transactions.

That’s exactly why Divly exists. We created a tool that guides you step-by-step through filing your taxes in full compliance with local regulations, without the stress or uncertainty. In this guide, we’ll show you exactly how to report your Bitcoin transactions.

Learn about Divly the crypto tax calculator

When Should I Declare My Cryptocurrencies?

You should report your Bitcoin activity in your annual tax return for your country’s tax year. In some places, you may also need to make quarterly or advance/estimated payments if you have significant gains or income.

You generally need to declare when you:

Sell BTC for traditional currency (like USD or EUR) — this usually creates a capital gain or loss.
Swap BTC for another crypto or a stablecoin — this is typically a taxable disposal.
Spend BTC on goods or services — treated like selling BTC.
Earn BTC — from mining, Lightning routing fees, interest/lending rewards, referral bonuses, or salary/contract payments. These are usually taxed as income at the fair market value when received.
Receive BTC from a fork or airdrop — often taxable when you have control of the coins.
Make gifts or donations — giving BTC can be a taxable disposal; donations to eligible charities may be deductible in some places.
Claim allowable losses — you may be able to offset gains with capital losses, depending on local rules.

Moving BTC between your own wallets is usually not taxable, but you should keep records to track your cost basis and dates.

At the end of each tax year, include your Bitcoin gains, losses, and income in your tax return. Deadlines and exact rules vary by country, read our local tax guides for more info.

How to export your Bitcoin transaction history

Automatic import

Divly has built an integration that lets you automatically import your Bitcoin transaction data directly from the Bitcoin blockchain. Divly's integration can handle both your public Bitcoin Addresses or xPub key provided by many wallets. Divly will never ask for your private keys, remember to always keep them secret!

Copy and paste your Bitcoin Address or xPub / yPub / zPub into Divly.
Select the blockchain Bitcoin (BTC) from the dropdown.
Click the button Save Wallet Address and Import. Divly will import your transactions and calculate your taxes.

Where do I find my Bitcoin address?

A Bitcoin address is the unique identifier that represents where your Bitcoin is stored on the blockchain. You can think of it as a bank account number that you can provide for people to send funds to. You should be able to find it in your Bitcoin wallet.

Here are three examples of Bitcoin addresses:

17VZNX1SN5NtKa8UQFxwQbFeFc3iqRYhem
3EktnHQD7RiAE6uzMj2ZifT9YgRrkSgzQX
bc1qw508d6qejxtdg4y5r3zarvary0c5xw7kv8f3t4

Where do I find my xPub key?

It is common practice for Bitcoin wallets not to reuse Bitcoin addresses to improve privacy. In this case the wallet will often provide an xPub key (Extended Public Key) that is linked to all of your Bitcoin addresses. By providing Divly an xPub key, you will be able to import Bitcoin transactions from all of your Bitcoin addresses associated on your wallet. This can save you a lot of time.

Here is an example xPub key:

xpub6CUGRUonZSQ4TWtTMmzXdrXDtypWKiKrhko4egpiMZbpiaQL2jkwSB1icqYh2cfDfVxdx4df189oLKnC5fSwqPfgyP3hooxujYzAu3fDVmz

If the xpub does not work, try converting it to zpub using this converter.

Why is Divly the best choice for Bitcoin taxes?

Divly is built for each country with a focus on accuracy. Unlike generic tools, we automatically generate the compliant, local tax report you need for your country. We handle complex local rules so you don’t have to.

Fast Import: Fast import of Bitcoin on-chain transactions that seamlessly combines with your other wallets and accounts.
Accurate Calculations: Accurate calculation of your gains and losses with the right cost basis method (e.g. FIFO).
Local Tax Report: Simple download of your country-specific tax report with a clear guide on how to file.

Frequently asked questions (FAQ?)

Yes, in most countries you are required to pay taxes on Bitcoin. For more details see your country-specific crypto tax guide.

Bitcoin typically incurs a capital gains tax in the majority of jurisdictions. This means you need to pay taxes on the difference between what you bought Bitcoin for and what you sold it for (minus fees).

If you received Bitcoin through other methods (e.g. salary), methods like income tax will apply.

Yes, you can use Divly to declare Bitcoin taxes for previous years that you missed. In many countries you can self-report mistakes and not get penalized for it.

Divly provides localized guides on how to fix previous years for many of our supported countries.

It is a criminal offense to not pay your taxes. It is also difficult to avoid since Bitcoin transactions are recorded publicly on the blockchain and exchanges have been forced to hand over information to local tax authorities.

Yes, you need to file a tax report even if you lost money. The good news is that by filing your losses you may be able to reduce your taxes.

Divly is a premium service to help people calculate and submit their crypto taxes. We use industry standard practices to secure your data.

We do not sell your information to third parties such as other companies or government agencies.
We do not perform any KYC. Divly only requires an email address and your pseudonymous crypto transactions to generate your taxes.

Feel free to use a temporary email / protonmail. You can also delete all your transactions and synched wallets at any time.

Yes. You can safely ask your accountant to create and manage a new Divly account for you, or invite them to see and/or edit your existing Divly account. Divly provides accountants with a special feature to manage multiple clients with crypto.

Any tax-related information provided by us is not tax advice, financial advice, accounting advice, or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our