Solana Tax Guide for 2025
2025 was a landmark year for Solana — price volatility, DeFi growth, and new IRS reporting requirements all collided. If you were active on-chain, here's everything you need to file your 2025 taxes correctly before the April 2026 deadline.
Key Dates for 2025 Tax Filing
Missing a tax deadline can result in penalties and interest. These are the dates that matter for your 2025 crypto taxes.
If you actively traded Solana in 2025 and realized significant gains, consider whether you owe any 2025 estimated taxes that may already be overdue. The IRS can charge underpayment penalties even if you file on time in April.
- ✓ Gather all your transaction records now — don't wait until April
- ✓ Check your email and exchange accounts for 1099-DA forms (new this year)
- ✓ If you had large gains, consult a CPA before the deadline
2025 Tax Rates for Crypto Updated for 2025
The IRS taxes cryptocurrency gains differently depending on how long you held the asset. The threshold is exactly one year from the date of purchase.
Short-term capital gains (held 12 months or less) are taxed at ordinary income rates — the same as your salary. These can be significantly higher than long-term rates.
Long-term capital gains (held more than 12 months) qualify for preferential rates. Most people fall into the 15% bracket.
Staking rewards and airdrops received in 2025 are typically taxed as ordinary income at the rates above, based on their USD value when you received them.
What Changed in 2025 New Rules
2025 brought meaningful changes to how the IRS tracks and taxes crypto. If you're filing based on your experience from previous years, pay attention to these updates.
Form 1099-DA (Digital Asset reporting)
Starting with the 2025 tax year, centralized brokers — exchanges like Coinbase, Kraken, and Gemini — are required to issue Form 1099-DA reporting your proceeds from digital asset sales. This is a major shift: previously, exchanges were largely on the honor system. Now the IRS receives data directly. If your reported gains don't match what the exchange reports, you'll likely receive a CP2000 notice.
Cost basis reporting requirements
Beginning in 2025, brokers are required to track and report cost basis for digital asset transactions, similar to how stock brokers work. For assets acquired on-exchange after January 1, 2025, you'll receive cost basis information on your 1099-DA. Assets acquired before that date, or through self-custody wallets, still require your own recordkeeping.
Decentralized protocols are not yet covered
The broker reporting rules currently apply to centralized exchanges. DeFi protocols and self-custody transactions — which is most of what Solana power users do on Jupiter, Raydium, or Orca — still require you to track everything yourself. This is unlikely to stay that way forever, but for 2025, on-chain activity remains your responsibility.
- ✓ Expect 1099-DA forms from centralized exchanges by January 31, 2026
- ✓ DeFi, DEX swaps, and self-custody transactions still require self-reporting
- – Cost basis tracking for pre-2025 on-exchange purchases remains your responsibility
Step-by-Step: How to File
Filing crypto taxes is manageable if you break it into clear steps. Here's the process from raw transaction data to a completed return.
- 1. Gather all your records. Pull transaction history from every wallet address you used in 2025. Also collect any 1099-DA or 1099-B forms from centralized exchanges. Don't forget wallets you may have only used once for an airdrop claim.
- 2. Categorize each transaction. Separate disposals (sells, swaps, NFT sales) from income events (staking rewards, airdrops) and non-taxable transfers. Each category is reported differently on your return.
- 3. Calculate your gains and losses. For each disposal, determine the proceeds (USD value at time of sale) and cost basis (what you paid, including fees). Apply your chosen cost basis method (FIFO, HIFO, etc.) consistently across all transactions.
- 4. Separate short-term and long-term. Sort your disposals by holding period. Short-term gains and losses go in one bucket; long-term in another. You can net losses against gains within each bucket.
- 5. Fill out Form 8949. List each disposal on Form 8949 — description, dates acquired and sold, proceeds, cost basis, and gain or loss. Part I covers short-term; Part II covers long-term.
- 6. Transfer totals to Schedule D. The net totals from Form 8949 flow to Schedule D, where they combine with any other capital gains or losses (stocks, real estate, etc.).
- 7. Report income events on Schedule 1. Staking rewards and airdrops taxed as ordinary income go on Schedule 1 (Additional Income), not Schedule D. They increase your adjusted gross income directly.
- 8. Answer the crypto question on Form 1040. Every 1040 now asks: "At any time during 2025, did you receive, sell, exchange, or otherwise dispose of any digital asset?" Answer honestly — this is a federal form.