Auto Sync with Polygon Recap has a comprehensive integration with Polygon that makes it easy to manage your crypto tax calculations. Add your Polygon public address to Recap to import your full history and automate your taxes. From 2026, tax authorities are widening the automatic reporting of crypto under frameworks such as the OECD's Cryptoasset Reporting Framework (CARF), so keeping an accurate record matters more than ever.
Disclaimer
The information provided in this content does not endorse Polygon. Furthermore, it does not constitute tax advice. If anything financial or tax-related is unclear, speak to a qualified tax professional. You can also share your Recap account with your accountant or tax adviser directly.
Why Polygon tax can be difficult to calculate manually
A Polygon account gives you a complete record of your activity, but it is raw on-chain data rather than a tidy statement. That is exactly what makes the tax side hard to work through by hand. A few things tend to trip people up:
Common pitfalls
- Transfers between your own accounts are not disposals. Moving crypto between accounts you control is not a taxable event, but it is easy to mistake for one, or to miss the trades hidden among the transfers.
- On-chain swaps are disposals. Swapping one token for another, including trades through decentralised apps, is a disposal even though no ordinary money changes hands.
- Network and gas fees. Paying a fee in crypto is a disposal of the crypto spent as well as an allowable cost of the transaction it belongs to, so fees have to be picked up on both sides rather than ignored.
- Rewards and airdrops. Staking and reward tokens are income at the value they arrive at, and they enter your cost basis at that same value. Airdrops work differently: Recap treats them as an acquisition rather than income. Both are easy to leave sitting in the account and overlook.
How to import your Polygon data into Recap
Polygon imports into Recap from your account. Add your public address, and Recap reads your on-chain activity automatically, including receipts, sends, swaps and fees. Recap classifies and values every entry with our fair-market valuation engine and applies the tax rules for your jurisdiction, turning raw on-chain data into a clear set of gains and losses.
How are Polygon transactions taxed?
Tax treatment depends on the transaction type and where you are tax resident. Here is how the main Polygon activities are generally treated:
Recap's default tax treatment
| Transaction type | CGT disposal | CGT acquisition | Income |
|---|---|---|---|
| Receiving crypto into your account | CGT disposal: no | CGT acquisition: no. Recap records a plain inbound transfer as a deposit, not a pool acquisition. Two inflows are auto-classified differently: a self-sent claim (recognised claim event for your address) or a batch send becomes an Airdrop acquisition, and an inflow matched to an outflow from another of your own accounts becomes a Transfer. Anything else can be recategorised (for example to Income, Airdrop or Gift received) in the app. | Income: no |
| Sending crypto from your account | CGT disposal: no. The amount sent is not treated as a disposal by default. Recap's default for an unmatched outbound transfer is a withdrawal. The POL gas paid is a separate fee disposal. If the send is really a spend, gift or donation you can recategorise the transaction, which does create a disposal. | CGT acquisition: no | Income: no |
| Swapping one token for another | CGT disposal: yes | CGT acquisition: yes. The token received enters the section 104 pool at the value allocated from the swap. Recap's default: unpriced legs take the residual value of the swap (‘Allocate residual swap value to unpriced assets’, default on for portfolios created after 2026-06-18). Configurable: turn it off and an unpriced leg is valued at zero. | Income: no |
| Selling crypto for a stablecoin | CGT disposal: yes | CGT acquisition: yes. Because the stablecoin is a token and not fiat, Recap also records an acquisition of it into its own section 104 pool, so a later stablecoin disposal is calculated against that pool. | Income: no |
| Network and gas fees | CGT disposal: yes. POL spent on gas is disposed of at market value. Where the fee belongs to another event (swap, withdrawal, mint) it is also attached to that event as an allowable cost. Approvals, contract executions and failed transactions are fee-only, so gas is the sole event they generate. | CGT acquisition: no | Income: no |
| Staking or reward tokens received | CGT disposal: no | CGT acquisition: yes. The reward also enters the section 104 pool at the same market value used for the income figure, so that value becomes its cost base. | Income: yes. Recap's default: staking rewards and reward tokens are recorded as income at market value on receipt. Recap's default: fees are not netted off the income amount. Configurable: enable ‘Deduct fees from income’ and a same-asset fee is deducted from the income amount instead of being emitted as a separate fee disposal. Where a reward inflow is not auto-detected it lands as a deposit and can be recategorised to Staking reward, Income or Interest. |
| Transferring between your own accounts | CGT disposal: no. Moving your own POL or tokens between your own accounts is not a disposal. The POL gas paid on the sending side is still a fee disposal. If the two legs cannot be matched, the outflow stays a withdrawal and the inflow stays a deposit. | CGT acquisition: no | Income: no |
This table shows how Recap classifies each transaction type by default. Some treatments — such as the acquisition cost used for airdrops — are configurable in Recap. This is general information, not tax advice; consult a qualified tax professional about your circumstances.
This table shows Recap's default classification for common Polygon transactions. It is not an exhaustive schedule or a ruling. Treatment depends on your circumstances and jurisdiction, and you can recategorise any transaction where yours differ. Confirm your position with a qualified tax adviser.
Swapping one token for another, including trades into stablecoins, is both a disposal of the token you give up and an acquisition of the one you receive, each measured against your cost-basis pool. Moving crypto between your own accounts is not a disposal. Network and gas fees paid in crypto are a disposal of the crypto spent in their own right, and are also added to the cost of the transaction they relate to. Staking and reward tokens received on-chain are generally treated as income at the value you receive them and enter your pool at that same value, so only later growth is a gain.
Refer to our tax guides for a more detailed look at crypto tax rules.
What's in your Polygon tax report
Recap turns your Polygon activity into a single tax report: on-chain swaps treated as the disposals they are, transfers between your own accounts excluded, fees accounted for, capital gains and losses and income worked out under the rules for your jurisdiction, and a clear year-by-year summary you can file yourself or hand straight to your accountant.
Common Polygon tax challenges and how Recap solves them
On-chain data produces a few recurring tax problems. Here is how Recap handles each one:
How Recap handles each one
- Telling transfers from disposals. Moving funds between your own accounts is not taxable, but a swap is. Recap tells them apart so nothing is mislabelled.
- On-chain swaps. Each token-for-token swap is a disposal. Recap reads it and calculates the gain or loss automatically.
- Fees and gas. Fees paid in crypto are easy to overlook. Recap treats each one as a disposal of the crypto spent and attaches it as a cost to the transaction it belongs to.
- Rewards and airdrops. Reward tokens land as income events, while airdrops are treated as an acquisition rather than income. Recap values each one at the point it arrives, so none are missed.
Why Polygon users choose Recap
Polygon users often choose Recap because raw on-chain data, full of transfers, swaps, fees and rewards, is slow and error-prone to reconcile by hand. Rather than reading it transaction by transaction, you can bring it into Recap and see your gains and losses reconciled in one report, ready to file or share with your accountant.
