How to calculate your Kraken taxes

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Sam Adams
Samantha Adams
Head of Content

Recap has a comprehensive integration with Kraken that makes it easy to manage your crypto tax calculations. Sign up for Recap and link your Kraken account to securely monitor each transaction, manage your cryptocurrency portfolio, and effortlessly automate your taxes.

*Disclaimer: The information provided in this content does not endorse Kraken. Furthermore, it does not constitute tax advice. If you are uncertain about any financial or tax-related matters, we strongly recommend seeking guidance from a qualified tax professional. Additionally, you may utilise our accountant and professional advisor sharing features.

What is Kraken?

Kraken is a cryptocurrency exchange founded in 2011 offering the ability to buy and sell crypto assets and NFTs, trade futures and earn rewards on assets through staking.

Here's a breakdown of what Kraken offers:

  • Buying and Selling Crypto: Purchase and sell popular cryptocurrencies like Bitcoin and Ethereum directly on the platform.
  • Futures: Bet on the future price of crypto assets, often with leverage.
  • Staking: Gives users the potential to earn rewards by locking their crypto assets.
  • NFT Marketplace: Buy and sell non-fungible tokens directly on Kraken.

How to automate your Kraken crypto taxes with Recap

You can make the process of calculating your taxes stress-free with our crypto tax software. Connect your Kraken account to Recap, and our system will classify and value all transactions using our unique fair-market valuation engine and determine your tax liability.

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How are Kraken Transactions Taxed?

Tax implications on your Kraken transactions differ based on transaction types and your tax jurisdiction. Here are the tax guidelines for the different transaction types on Kraken:

Transaction typeCGTIncomeTracked in Recap
Deposits
Withdrawals
Buying crypto with fiat
Crypto to crypto
Selling crypto for fiat
Staking rewards
Staking transfers
Airdrops
Dust transactions
Margin trades
Margin rollover fees
Parachain transfers

Refer to our tax guides for a more detailed look at crypto tax rules.

Help Guides

Connecting your Kraken account

A step-by-step guide for connecting your Kraken account to Recap.

Open guide
Connecting your Kraken Futures account

A step-by-step guide for connecting your Kraken Futures account to Recap.

Open guide
Missing Acquisitions

How to resolve the missing acquisition status.

Open guide

Automate your Kraken tax reporting - takes 5 mins.

  • 1

    Sign up to Recap

  • 2

    Set up auto sync with our step by step guide

  • 3

    Generate your tax report ready to self-file or share with your accountant

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FAQs

Do I need to pay tax on my Kraken transactions?

Yes, you may need to pay tax on your Kraken transactions. Tax obligations vary depending on your country’s tax laws and the nature of your transactions. Common taxable events include selling cryptocurrency, trading between coins (crypto to crypto), and making purchases with crypto.

Do the tax authorities know about my Kraken transactions?

Tax authorities may become aware of your Kraken transactions through various means, such as data-sharing agreements between crypto exchanges and tax authorities or during tax audits. It's essential to report your crypto transactions to avoid penalties accurately. Using a crypto tax software like Recap can help ensure your transactions are properly recorded and reported.

What is the benefit of using a crypto tax calculator?

A crypto tax calculator automates the process of calculating taxes on your cryptocurrency transactions, providing accurate tax liability figures and ensuring compliance with tax regulations without manual calculations.

Does Kraken report to HMRC?

Yes, Kraken may report your transactions to HMRC. As a UK taxpayer, your cryptocurrency transactions on Kraken and other platforms are subject to capital gains tax and income tax. Regardless of whether Kraken report your data, it’s your legal responsibility to declare all your crypto earnings to HMRC. Staying compliant with tax regulations is crucial to avoid penalties - check out our comprehensive UK Crypto Tax Guide to learn more.