WagerMintsPolymarket tax calculator
Last reviewed November 6, 2026
Every position that made money this year.
Every position that lost money, as a positive number.
Net result: $10,000. Federal tax this year from this trading, at 24%:
Capital gainslowest
$10,000 short-term gain at 24%.
$2,400
Ordinary incomelowest
$10,000 at 24%.
$2,400
Gambling
$30,000 winnings at 24%, losses count for nothing without itemizing.
$7,200
Section 1256 (60/40)
Not available for polymarket.com trades.
Not available
The gap between the cheapest and the most expensive method is $4,800 of federal tax, for the same trades.
A rough estimate at one bracket rate, for this trading only. It leaves out the standard deduction effect, state tax and other income. Your own trades give the real numbers.
polymarket.com or Polymarket US?
They’re taxed differently. polymarket.com runs on a blockchain and isn’t a CFTC-regulated exchange, so the 60/40 method is out, and your positions go in the digital asset boxes (I and L) on Form 8949. Polymarket US is a separate CFTC-regulated exchange, treated like Kalshi. Pick the one you used in the calculator.
How do I use the Polymarket tax calculator?
- Find your history. polymarket.com sends no statement, but every buy, sale, redemption and reward sits on the blockchain under your wallet address.
- Work out each position’s result: what you got back from selling or redeeming it, minus what you paid, with fees counted.
- Add up the winning positions for the first box and the losing ones for the second, then pick your bracket and the tax year.
Or skip the adding up: WagerMints reads the whole year from the wallet address. How Polymarket taxes work.
Example: what tax do you owe on a winning Polymarket year?
Say your winning positions on polymarket.com made $30,000 and your losing ones lost $20,000, a $10,000 net profit, in the 24% bracket for 2026:
| Method | Federal tax | How it’s worked out |
|---|---|---|
| Capital gains | $2,400 | $10,000 short-term gain at 24% |
| Ordinary income | $2,400 | $10,000 at 24% |
| Gambling, standard deduction | $7,200 | $30,000 winnings at 24%, losses count for nothing without itemizing |
| Gambling, itemizing | $2,880 | $30,000 winnings, less $18,000 of losses (90% rule), at 24% |
| Section 1256 (60/40) | Not available | Not available for polymarket.com trades |
The same trades cost between $2,400 and $7,200 of federal tax, a gap of $4,800. The 60/40 method shows as not available because polymarket.com is not a CFTC-regulated exchange.
Example: do you owe tax on Polymarket if you lost money?
You can. Take $20,000 of winning positions and $50,000 of losing ones, a $30,000 loss for the year:
| Method | Federal tax | How it’s worked out |
|---|---|---|
| Capital gains | Saves $720 | $3,000 of the loss comes off other income at 24%. $27,000 carries forward |
| Ordinary income | Depends on your facts | Whether a net loss reduces other income depends on your facts, such as trader status |
| Gambling, standard deduction | $4,800 | $20,000 winnings at 24%, losses count for nothing without itemizing |
| Gambling, itemizing | $0 | $20,000 winnings, less $20,000 of losses (90% rule), at 24% |
| Section 1256 (60/40) | Not available | Not available for polymarket.com trades |
As gambling on the standard deduction, this trader lost $30,000 and still owes $4,800. As capital gains, the loss takes $3,000 off other income this year and the rest carries forward. In our study of real wallets, one of Polymarket’s biggest lost $104,386 in 2025, and under the same rules its trades would be taxed as $157,326 of income. The wallet study.
Are liquidity rewards in the calculator?
No. Liquidity rewards and rebates are ordinary income under every method, so they’re left out of this calculator. On some wallets they outweigh the trading result.
What does the calculator leave out?
- Your other income and the standard deduction. It prices this trading at one bracket rate.
- State income tax. Your state’s rules.
- Liquidity rewards, which are ordinary income on their own.
- The small crypto gain or loss when you turn your balance back into dollars, usually cents. What counts as a taxable event.
Polymarket tax calculator questions
How is Polymarket taxed in the US?
Polymarket sends no tax forms, but US filers still owe tax on their profit. For polymarket.com trades the choice is between capital gains, ordinary income and gambling treatment; Section 1256 doesn't apply because polymarket.com isn't a CFTC-regulated exchange. Polymarket US trades can also be argued under Section 1256.
Where do I get my Polymarket trade history?
polymarket.com sends no statements. Your history is public on the blockchain under your wallet address, and WagerMints can read it from the address alone.
Does Polymarket send a 1099?
No. polymarket.com does not issue a 1099-B, 1099-DA or W-2G for trades, so the IRS gets no form about them. You still owe the tax and rebuild your year from your wallet's history.
Can I use Section 1256 on Polymarket?
Not for polymarket.com trades. Section 1256 needs a contract traded on a qualified board or exchange, such as a CFTC-designated contract market, and polymarket.com is not one. Trades on the separate, CFTC-regulated Polymarket US exchange can argue it, like Kalshi.
Do I owe tax on Polymarket if I lost money for the year?
You can. Under gambling treatment, your winning trades are income and your losses count only if you itemize. In our example, a trader who lost $30,000 overall still owes $4,800 on the standard deduction. As capital gains, the same year takes $3,000 off other income and carries the rest forward.
Do I owe tax on Polymarket if I don't withdraw?
Yes. A gain or loss counts when you sell a position or its market resolves. Keeping the balance in your wallet does not delay the tax.
Trade on Kalshi too? Use the Kalshi calculator, or the general one.
See your own year four ways
Paste your polymarket.com wallet address into WagerMints and it rebuilds the whole year from the blockchain, with each method priced and the forms filled in. Free to run.
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