NFT Taxes in Australia 2026: The Best NFT Tax Guide

What are NFTs?

Non-Fungible Tokens (NFTs) are unique digital tokens, usually representing an asset, art piece, collectible, token, or any other digitally stored asset on the blockchain. 

Are NFTs Taxable in Australia? 

‍Yes, NFTs are taxable in Australia, following the same rules as cryptocurrencies in general, with investors facing capital gains and income tax rates. As a general rule, trading/selling NFTs are treated as capital gains taxes, while earning income from creating and selling NFTs or from secondary sales will fall under income taxes.

How Much Tax Do You Pay on NFTs in Australia?

NFTs can be subject to different types of taxes (capital gains vs income), but the tax rate will always depend on the income tax bracket of individual investors. In Australia, income tax rates can go as high as 45%. Let’s cover the differences:

Income Tax Rate

Creating and selling NFTs or earning any type of income from NFTs (e.g., secondary sales) will be taxed under income taxes in Australia. In other words, any income will be added to your total income for the tax year and the tax rate you’ll pay depends on your income bracket.

The ordinary income tax brackets in Australia in 2026 are as follows:

Capital Gains Rate

Gains from trading NFTs (e.g., selling NFTs for FIAT or other cryptocurrencies) are subject to capital gains tax in Australia. These gains from NFT activities are added to your taxable income and your tax rate depends on your total income for the year. However, you can reduce these taxes in Australia if you hold your NFTs for over one year, with only 50% of your gains counting as taxable income.

What Records Should You Keep of Your NFT Transactions? 

The ATO requires NFT investors to keep accurate and detailed information about their crypto/NFT activities. To stay compliant, you should track key details such as:

• Sales proceeds
• Cost basis (Fair Market Value at purchase)
• Earned income
• Capital gains/losses
• Date of acquisition
• Date of sale
• Type of asset and purpose (identification)
• Trade info (wallet)

How to Report NFT Taxes to the ATO in Australia?

Any income and gains from NFTs must be reported to the Australian Taxation Office (ATO), either online or via paper forms using the appropriate tax return sections. However, before filling your taxes, you need to accurately determine the gains/losses and income from your NFT activities. Here’s what you need to know to enjoy a smooth process:

Should You File Taxes Manually or Automatically? 

The easiest way to track your gains/losses and income from NFT activities is by using an Australian-compliant crypto tax calculator that automates the entire process and helps you to generate compliant tax reports.

For Investors & Hobby NFT Creators

Investors buying and selling NFTs will have to calculate gains/losses on each trade, which can be cumbersome to do manually. The easiest way to import every trade is to use a crypto tax tool that automates the entire process. Hobby NFT creators have to determine the income generated from creating and selling NFTs, with the crypto tax software being the the easiest and most reliable way to automate the process.

For Professional NFT Creators

Unlike hobbyists or casual investors, professional NFT creators will probably be classified as a business and have to file specific business-related tax forms and pay business income taxes instead of personal taxes.

How Do You Save Money on NFT Taxes in Australia?

There are several effective strategies for crypto investors to optimize their NFT taxes in Australia. Let’s cover the main ways you can reduce NFT taxes:

Hold Your NFTs for the Long-Run 

In Australia, if you hold your NFTs for over one year before selling them, you qualify for a 50% discount on your gains. In other words, only half of your NFTs gains will be going towards your taxable income (affecting your income bracket and tax rate). 

Buy NFTs with FIAT Currency 

In Australia, buying NFTs with FIAT currency (e.g., Australian Dollars) is not a taxable event, thus you don’t have to pay capital gains taxes.

Dispose of Your NFTs in a Low-Income Year 

If possible, consider selling your NFTs in a low income year, because those gains are added to your taxable income, and, if in one particular year, your total taxable income is low, you’ll likely fall under a lower income bracket and you’ll pay less tax on your total NFT gains.

Offset Gains with NFT Losses

If you’ve incurred losses from trading NFTs,but have gains from other crypto activities, you can reduce those gains with the NFT losses and pay less capital gains taxes.

Account for Transaction Fees 

When trading (selling) NFTs, it's important to include any transaction or exchange fees in your cost basis, thus reducing your NFT gains and paying less taxes.

Special Cases for the NFT Tax in Australia

NFT taxes follow the same rules as crypto taxes in Australia. However, some NFT-related transactions can be more complex to evaluate. In either case, let’s cover how you can handle taxes for the most common NFT operations:

NFT Taxes for Creators

People creating and selling NFTs (without running a business) will have to determine the income (Fair Market Value) of each NFT sold and declare that total amount in their taxes. Here’s how it works:

Taxes on Selling an NFT

Let’s see how you can determine your income from creating and selling an NFT: In March 2024, John sold 1 NFT for 1 ETH (worth AUD 4K) at the time. As a result, he reported, in March 2024, income of AUD 4K (an invoice for that sale).

Taxes on Earning Royalties on NFTs

Creators can also gain income from secondary sales (similar to royalties). Here’s how to calculate your NFT taxes: In July 2024, John received 0.1 ETH because of a secondary sale. At that time, 1 ETH is worth AUD 3K, so he reports an income for that royalty of AUD 300 (0.1 ETH *AUD 3K).

NFT Taxes for Investors

Trading NFTs for other cryptocurrencies or selling them for FIAT will result in a taxable event in Australia. Here’s how NFT taxes work for investors:

Taxes on Buying an NFT

When investors buy an NFT with FIAT, there’s no taxable event in Australia. However, when buying an NFT with another cryptocurrency, it is treated as a crypto-to-crypto trade, which is taxable. Let’s see how to calculate this case in the next section.

Taxes on Selling an NFT

Selling a NFT for a cryptocurrency or FIAT is a taxable event in Australia. Buying an NFT with crypto (the same as selling a cryptocurrency for an NFT) is also a taxable event. Here’s a simulation:

NFT Taxes on Airdrops

If you receive an NFT as an airdrop, you need to follow the same method as receiving a token in an airdrop: you need to determine the Fair Market Value (in AUD) of that asset at the moment you received it and declare it as income.

Paying Tax on Donating NFTs

Donating NFTs to a qualified charitable organization in Australia is not considered a taxable event and it might even be possible to claim a tax deduction from that donation.

Taxes on How to Pay Tax on NFTs in Play-to-Earn Games

Play-to-Earn games can lead players to trade NFTs, which fall under capital gains taxes, where investors need to determine the gains/losses on each trade and add it to their taxable income. In cases where players earn NFT-derived income, they need to calculate their FMV (in AUD) and pay income taxes accordingly.

Taxes on How are NFT Gas Fees taxed?

Gas fees can be included in your cost basis, thus reducing your capital gains when having profits from NFT trading. 

Taxes on Losses & Worthless NFTs & Treatment of Losses

If you incur losses from NFT trading but have capital gains from other crypto or investment activities, you can use those losses to offset overall gains and reduce capital gains taxes.

Taxes on Staked NFTs

‍Generating income from staking (crypto or NFTs) is a taxable event, falling under income taxes. You need to determine the Fair Market Value (in AUD) of the staking rewards at the time you received them and report them as income.

NFT-Taxes in Other Countries

United States (US)

In the US, similarly to Australia, trading NFTs for crypto or FIAT is taxed under capital gains taxes, while creating and selling NFTs as an individual is taxed according to the income tax rates. Discover more about US crypto tax from our guide.

United Kingdom (UK)

In the UK, trading NFTs is generally treated as a capital gains tax event. Your tax liability will depend on your total income for the tax year, similar to Australia. Find out more intricacies about crypto taxation in the UK in our guide.

Canada 

‍Trading or selling NFTs is a taxable event in Canada and is subject to capital gains tax. If you’re earning revenue from creating NFTs , that income is typically classified under regular income tax. However, Canadian tax law provides a potential advantage: if your NFT activity qualifies as a capital gain rather than business income, only 50% of the gain is taxable. To benefit from this preferential treatment, certain conditions must be met. Discover more about that caveat and other important rules in our Canada crypto tax guide.