The short version
- For private collectors and investors, NFTs mostly follow capital gains: holding is untaxed, selling or transferring settles the gain or loss.
- Buying an NFT with crypto is itself a disposal — the ETH you paid settles its own gain first; the NFT’s gain comes later, at its sale.
- Each NFT is generally a standalone asset with its own cost — no pooling with fungible tokens.
- Creating, minting or dealing leans income/business treatment; and the US has a live question about taxing some NFTs as collectibles at a higher long-term rate.
The core logic
For most individuals an NFT behaves like any other cryptoasset: untaxed while held, taxed at disposal. The part that slips past people is the double disposal. NFTs are usually bought with ETH or another token — and that payment already disposed of the ETH, whose gain against its own cost crystallised right there at the checkout. The NFT’s own gain or loss is a second, later calculation at its sale. Unlike fungible tokens, each NFT generally carries its own cost individually — it never enters a pool.
Four-country table
| Country | Selling an NFT | Buying with crypto | Distinctive point |
|---|---|---|---|
| United Kingdom | Disposal under CGT | Also disposes of the crypto paid | Each NFT stands alone. |
| Australia | Disposal under CGT | Simultaneously a CGT event | The personal use exemption almost never fits. |
| United States | Capital gains on disposal | Also disposes of the crypto paid | Some NFTs may be taxed as collectibles (long-term up to 28%). |
| Germany | Private sale (one-year rule) | Also disposes of the crypto paid | Held over a year, usually exempt. |
Country notes
- United Kingdom: NFTs are cryptoassets for CGT; each is generally its own asset outside the Section 104 pool. See the UK guide.
- Australia: NFTs are CGT assets; paying in crypto triggers CGT; the personal use asset exemption rarely applies to NFT holdings. See the Australia guide.
- United States: property rules and capital gains — with the twist that Notice 2023-27 proposes a look-through analysis that could tax some NFTs as collectibles at a top long-term rate of 28%, unlike ordinary crypto. See the US guide.
- Germany: the private-sales framework applies — the one-year holding period and the €1,000 Freigrenze — with disposals after a year usually exempt. See the Germany guide.
Creators and traders are a different article
Everything above assumes a collector or investor. Minting and selling your own NFTs, or dealing in them as a business, shifts the analysis to income or business taxation — potentially with VAT/GST questions and royalty treatment attached — and the rules diverge sharply from the investor picture. That territory belongs with a tax adviser; this page deliberately stays out of it.
FAQ
I bought an NFT and never sold it. Anything to report?
What does the US treating NFTs as “collectibles” mean?
Official sources
The document worth reading in full is the US collectibles notice — it decides which rate band applies, and it is the only official text anywhere dedicated to NFTs specifically:
- US: IRS Notice 2023-27 (whether NFTs are taxed as collectibles), original PDF — irs.gov/pub/irs-drop/n-23-27.pdf
- UK: HMRC, Tax on cryptoassets (NFTs under general cryptoasset rules) — gov.uk/government/publications/tax-on-cryptoassets
- Australia: ATO, Crypto asset investments (incl. the personal use asset boundary) — ato.gov.au/…/crypto-asset-investments
- Germany: BMF letter on cryptoassets (updated 2025) — bundesfinanzministerium.de
Checked against the official pages on 1 September 2026. NFT taxation — the US collectibles question especially — is still developing; the authorities and professional advice govern.
One purchase, two tax events
Buy an NFT with ETH and the ETH settles a disposal immediately; the NFT itself waits for its own sale. Most people record only the second. Layer on “creator or collector?” and “collectible or not?” and identical trades can land in different rate bands. Not advice for your situation — minters and high-value traders should use a licensed professional.