Passive Income Tax: What Crypto Miners and Earners Need to Know

Earning crypto feels great — until the taxman knocks. Maybe you’re mining Bitcoin using digital miners. Maybe you’re staking your GOMINING tokens for daily rewards. Or maybe you’re racking up tokens in your favorite crypto games. Maybe, just maybe, you’re here wondering how to mine Bitcoin. No matter how you’re earning, there's a good chance it counts as passive income, and that means it could be taxed.

Understanding how passive income tax applies to your crypto rewards is key — especially as global regulations tighten. What exactly counts as passive income? How do different countries treat it? And how can you calculate what you might owe?

In this guide, we’ll break it all down: from the basics of tax on passive income to regional differences across the US and EU, plus smart tools like a crypto earnings calculator to help you stay organized. We’ll also walk you through how GoMining’s digital miners make it easier to automate and grow your income — and what that means when it’s time to file your taxes.

If you’re exploring ways to receive crypto rewards through mining, staking, or gaming, it's worth comparing traditional and modern methods. Here’s a helpful comparison of cloud mining and digital mining to see which one best fits your crypto journey.

What is Considered Passive Income for Tax Purposes?

In tax language, passive income refers to money you receive without actively working for it. Classic examples include rental income or dividends from stocks. But in the crypto world, this concept has evolved. Today, if you’re getting regular crypto rewards — even without trading or selling — it's very likely that you're generating passive income.

Mining Bitcoin is a clear example: machines (or cloud-based alternatives) run 24/7, and your wallet fills with rewards. One of the most accessible ways to start is through GoMining’s high-performance digital Bitcoin miners, which deliver daily BTC rewards without the hassle of setting up hardware or managing electricity. These miners simplify the process and make it easier to generate passive income from mining.

Not sure how they stack up against traditional cloud mining? Here’s how GoMining’s digital miners compare.

Similarly, staking tokens or earning yield through DeFi protocols are all considered passive income. This also applies to bonuses or tokens you receive from play to earn crypto platforms.

Many people are now discovering the best play to earn crypto games as a fun and rewarding entry point into the crypto world. These platforms often fall under the broader trend of learn to earn crypto, where players pick up blockchain knowledge while receiving token rewards. For those looking to earn crypto online without allocating upfront capital, these gaming ecosystems offer one of the most accessible and engaging ways to get started. 

Understanding the ways to earn crypto through these platforms — whether mining, staking, or gaming — is essential.

Although it may feel like “free money,” most jurisdictions treat crypto rewards like any other income. That’s why more users are relying on the best passive income apps to keep everything organized. So, if you’re asking if passive income is taxable, the answer is almost always yes, especially when the tokens are received or used.

Why Crypto Rewards Count Toward Tax on Passive Income

Traditionally, tax on passive income applied to interest, dividends, or royalty payments. But regulators are catching up with blockchain innovation. Today, crypto rewards are firmly in the spotlight.

Whenever you receive a token — whether from mining, staking, or games that earn crypto — tax agencies generally consider it income on that date. The value is calculated in fiat (e.g., USD or EUR) based on the market price at that moment.

That means even if you don't convert your tokens to fiat, you might still owe tax. And if the value drops later? That’s a separate capital loss — you’re still taxed on the value when you received it.

If you earn BTC with GoMining through daily digital miner rewards, collect staking rewards in GOMINING tokens, or earn crypto rewards playing games, chances are you’ll need to consider passive income tax as soon as those tokens land in your wallet.

How to calculate your passive income tax rate

Your passive income tax rate depends heavily on your location and total income. In the United States, crypto rewards are typically taxed as ordinary income — using the same brackets as your salary. That means rates between 10% and 37%, depending on how much you earn overall.

There’s also an additional layer to consider: the net earnings income tax form (Form 8960), which adds a 3.8% tax on capital income once you exceed certain thresholds ($200,000 for individuals, $250,000 for couples).

In Europe, rules differ by country. For example, Germany taxes crypto rewards as regular income unless held for over a year. Portugal has been known for tax exemptions — though new EU rules may affect this. Most EU countries now follow DAC8, a directive that mandates crypto income be reported to tax authorities.

To estimate your own rate, try using a trusted capital income tax calculator. And to figure out how much crypto you’ve actually earned, a crypto earnings calculator can track token values and reward history across wallets and exchanges.

Forms and paperwork: what to file

United States

For Americans, tax filing involves several forms depending on the type of crypto income. Most crypto rewards — from mining, staking, or even DeFi passive income — are reported on Form 1040 Schedule 1 under “other income.”

If your passive income is high, you may also need to file the net capital income tax form, which adds a 3.8% surcharge. Selling or converting crypto after receiving it? That’s where Form 8949 and Schedule D come in — you’ll report capital gains or losses based on how much the value changed since you got it.

If you run a mining operation as a business, you might also file Schedule C and claim deductions — but that’s beyond the scope of most GoMining users.

European Union

In the EU, tax reporting varies. Most users report their crypto rewards in their annual income tax return, often as “miscellaneous income” or "capital income.” Countries like Germany and France offer guidance, but many still lack clear crypto-specific forms.

Under DAC8, platforms may be required to report earnings to your local tax authority, so it's critical you track your income and declare it accurately.

Be sure to download and save your income statements and consider working with a local tax advisor familiar with crypto to help you complete your capital income tax form or equivalent.

EU vs US: Different approaches to passive income tax

When it comes to passive income tax, both the EU and the US tax crypto rewards — but the approach and intensity differ.

In the United States, tax is strict and detailed:

• Mining rewards are taxed as ordinary income the moment they’re received.
• If you later sell those rewards, you calculate capital gains or losses from the date you first received them.
• Tools like the net capital income tax form and capital gains schedules are standard.

In the European Union, approaches vary:

• Germany allows for tax-free long-term holdings (12+ months), but taxes short-term gains and rewards as income.
• Portugal historically allowed tax-free personal crypto earnings, though new rules may change that.
• Other EU countries often tax crypto rewards the same as salary or interest income.

Either way, keep records. Whether your country uses simple annual returns or crypto-specific disclosures, having a record of your earnings will help ensure compliance and reduce headaches.

Tools to calculate and manage your crypto income

Handling taxes on your crypto earnings doesn’t have to be confusing or stressful. One great way to stay on top of your income is by using a crypto earnings calculator. This tool is designed to help you track your rewards and mining outputs in real time — showing exactly how much crypto you’re earning, not just the tax side of things.

For example, GoMining’s mining calculator is a powerful resource that helps you understand your potential earnings from your mining efforts. It breaks down BTC rewards from GoMining’s digital miners so you get a clear picture of what to expect as you scale up your mining power and increase your terahash (TH) levels. This insight is invaluable for planning and optimizing your passive income strategy—especially when paired with this profitability analysis of Bitcoin mining.

When it comes to the tax side, combining this with an capital income tax calculator can give you a better idea of your tax liability based on your total income and your jurisdiction’s tax rules. This is crucial for managing your finances, planning quarterly tax payments, and avoiding surprises at tax time.

Managing your mining on the go? Discover if Bitcoin mining apps offer better ROI and whether a mobile-first approach delivers better results.

Don’t forget to download and save your statements from platforms like GoMining — these records simplify your reporting process, making tax season smoother and less stressful.

How GoMining helps you earn crypto — and what it means for your taxes

GoMining offers one of the easiest ways to receive crypto rewards without the hassle of building a rig, setting up complicated wallets, or dealing with electricity bills. By purchasing hashpower through digital miners, you get daily Bitcoin rewards sent directly to your wallet — all without the technical headaches.

You can explore GoMining’s high-performance digital Bitcoin miners to see how much hashpower each miner offers and what kind of rewards you can expect from day one.

These daily BTC payouts count as passive income. That means they’re typically taxed similarly to interest or staking rewards at the moment you receive them. But GoMining’s ecosystem goes beyond mining alone:

You can earn crypto playing crypto mining games like the Miner Wars game, where your in-game power boosts your mining strength and unlocks token bonuses.

Staking the GOMINING token gives you platform discounts and even more crypto rewards.

Best of all, these options can be scaled — buy more miners, stake more tokens, and expand your income stream using some of the best ways to earn passive income in crypto. 

If you’re building a portfolio or growing your recurring income, GoMining offers a flexible, beginner-friendly ecosystem designed to grow alongside you.

To understand how much you could make long-term, check out GoMining’s earning potential based on real user data and growth paths.

What about compounding your earnings?

One of the smartest strategies is to continue turning over your crypto income. Instead of withdrawing your BTC rewards, you can use them to buy more digital miners — which increases your TH/s (terahash) power and boosts your mining rewards.

This creates a compounding effect, where your passive income keeps growing over time. Plus, putting your rewards back into the system may help delay capital gains until a future date when you convert to fiat.

In a tax-efficient strategy, you:

• Receive rewards (report as income)
• Put your rewards back to work (no sale = no gains)(but we advise you check the rules subject to your region)
• Continue compounding your rewards with larger mining capacity

Over time, you build a reliable stream of recurring income, potentially deferring some taxes and optimizing your returns. Looking ahead, how AI is transforming the Bitcoin mining will be key for boosting efficiency and long-term sustainability.

Key Takeaways

• Yes, passive income is taxable, including crypto.
• Crypto mining, staking, and gaming all fall under the umbrella of tax on passive income.
• Your passive income tax rate depends on your country and income level.
• Use tools like a crypto earnings calculator and capital income tax calculator to stay organized.
• File the right forms: Choose the correct capital income tax form for your country and always consult a tax specialist.
• Consider platforms like GoMining to automate your earnings and grow your recurring income.
• Putting your rewards back into the system can help you scale them and create compounding returns.