How to File Your Solana (SOL) Taxes

Trading, staking, or using DeFi on Solana doesn't exempt you from tax obligations. If you're using Phantom, Solflare, or any other Solana wallet, the IRS considers your crypto activity taxable. This guide explains how Solana taxes work in 2026, how to connect your Solana wallet to Blockstats, and what you need to know before filing your tax return.

Solana tax guide 2025: Quick summary

How to connect Solana and Blockstats: Step-by-Step guide

Blockstats simplifies Solana tax reporting with automated transaction imports and tax calculations. Here's how to connect your wallet to file SOL taxes:

Step 1: Log in to your Blockstats account

Visit Blockstats and sign up for an account. If you already have an account, log in directly.

Step 2: Go to the Wallets page and then Add Wallet/Exchanges

After logging in, go to the top menu and click Wallets, and then click on Add Wallet/Exchanges.

Step 3: Select Solana

Choose the Solana from the integration list.

Step 4: Enter your Solana wallet address

Enter the Alias Name to recognize your wallet. Copy your Solana public wallet address and paste it into Blockstats.

Step 5: Click on the Connect button

Blockstats will import all your Solana transactions. This process typically takes a few minutes, depending on your transaction history and wallet activity.

Review your SOL transactions in Blockstats

Once your Solana data is imported, Blockstats automatically organizes and categorizes all your transactions. The platform ensures accuracy by helping you:

• Identify unlabeled transactions

• Detect missing cost basis

• Review token swaps and DeFi interactions on Raydium, Orca, and other protocols

• Check NFT mints, sales, and transfers from Magic Eden or other marketplaces

• Validate balances across multiple wallets

Blockstats catches errors before they become filing problems. This review step prevents incorrect tax calculations and potential audit issues down the line.

How do I find my Solana (SOL) public address

Your Solana wallet address is a unique string of characters that identifies your wallet on the blockchain. Here's how to find it in popular Solana wallets:

• Phantom Wallet: Open Phantom, click on your wallet name at the top, and your address will display. Click the address to copy it.
• Solflare Wallet: Open Solflare, click on the wallet icon in the top right corner, and your address appears below your wallet name. Click to copy.
• Sollet Wallet: Open Sollet, and your wallet address displays prominently at the top of the screen. Click the copy icon next to it.

Your public address always starts with a string of alphanumeric characters and is safe to share for receiving transactions or connecting to tax software.

Do I need to pay tax on Solana transactions in the US?

Yes, most Solana transactions trigger tax obligations in the United States. The IRS treats all cryptocurrency, including SOL, as property subject to capital gains tax.

Taxable Solana activities:

Swapping SOL for another token creates a capital gain or loss. Selling SOL for fiat currency is taxable. Using SOL to buy NFTs, goods, or services triggers capital gains tax on any appreciation since you acquired the SOL.

Earning crypto on Solana:

Staking SOL and receiving rewards is taxed as ordinary income at fair market value when received. Liquidity pool rewards from platforms like Raydium are also ordinary income. Airdrops received for holding tokens or participating in protocols are taxed as income when they hit your wallet.

Non-taxable Solana activities:

Transferring SOL between your own wallets is not taxable. Buying SOL with fiat currency is not a taxable event. However, maintaining records of these transactions is essential for calculating your cost basis later.

How are Solana NFTs taxed?

Solana NFT transactions follow the same tax rules as other digital assets. The IRS treats NFTs as property, which means each transaction has tax implications.

• Buying an NFT: When you purchase an NFT with SOL, you trigger a taxable event. You'll owe capital gains tax on any appreciation in the SOL you spent since you originally acquired it.

• Selling an NFT: When you sell an NFT for SOL or another token, you calculate capital gains based on the difference between your cost basis plus transaction fees and the sale proceeds.

• Minting an NFT: Minting creates a cost basis equal to the SOL spent plus transaction fees. You don't owe tax until you sell the NFT.

• Transaction fees: Solana's low transaction fees still affect your tax calculations. These fees add to your cost basis, reducing your taxable gain when you sell.

For example, if you mint an NFT for 2 SOL and pay 0.00001 SOL in fees, your cost basis is 2.00001 SOL. When you sell, this slightly higher basis reduces your gain.

Can I avoid Solana taxes?

No, you cannot legally avoid Solana taxes. All cryptocurrency transactions are subject to IRS reporting requirements, regardless of the blockchain you use.

Why you can't hide Solana activity:

Solana transactions are recorded on a public blockchain that anyone can view. The IRS uses blockchain analysis tools to track wallet addresses and connect them to individuals through exchange data and other identifying information.

If you transfer SOL between a centralized exchange like Coinbase or Kraken and your Solana wallet, the IRS can link your wallet address to your identity. Exchanges report user activity via Form 1099, creating a direct connection.

Legal tax reduction strategies:

Tax-loss harvesting allows you to sell depreciated assets to offset gains. Holding crypto for more than one year qualifies you for long-term capital gains rates, which are lower than short-term rates. Tracking your cost basis accurately using methods like FIFO and LIFO can minimize your tax liability legally.

Failing to report Solana transactions can result in audits, penalties up to 75% of unpaid taxes, and potential criminal charges. The IRS has expanded crypto enforcement significantly in recent years.

Need help with crypto taxes?

Having trouble with crypto or Defi tax?

• Visit our Help Centre 

• Reach out to us on Telegram or X (Twitter) 

• Email us at support@blockstats.app

What's the best crypto tax software for Solana?

Blockstats handles Solana and multi-chain crypto activity seamlessly. The platform supports Solana alongside Ethereum, Polygon, Arbitrum, Base, and other major networks.

• Key features for Solana users: Automatic transaction imports via wallet address with full support for Solana DeFi protocols. Integration with Raydium, Orca, Magic Eden, and other Solana platforms. Real-time portfolio tracking showing unrealized gains and losses across all your wallets.

• Tax optimization tools: Tax-loss harvesting suggestions to reduce your tax liability. Sell simulators that preview tax impact before you execute trades. Support for multiple cost basis methods, including FIFO, LIFO, and HIFO.

• IRS-compliant reporting: Pre-filled Form 8949 and Schedule D ready for your tax return. Detailed transaction reports with timestamps, cost basis, and proceeds for every trade. Complete audit trail documentation if the IRS requests supporting records.

Blockstats generates tax reports that consistently satisfy IRS requirements. The reports include legal interpretations and detailed transaction histories that meet tax authority standards.

Frequently asked questions

Do you have to pay tax on Solana?

Yes, you must pay tax on Solana transactions. The IRS treats SOL and all Solana-based tokens as property subject to capital gains tax. Trading, selling, or using SOL triggers taxable events. You must report these transactions on your tax return even if you don't receive a 1099 form.

How is staking Solana taxed?

Solana staking rewards are taxed as ordinary income at their fair market value upon receipt. Subsequent sale or trade incurs capital gains tax, using the value upon receipt as the cost basis.

How are Solana airdrops taxed?

Solana airdrops are taxed as ordinary income at their fair market value when you receive them. This applies whether you actively claimed the airdrop or it appeared automatically in your wallet. When you sell airdropped tokens, you'll owe capital gains tax on any appreciation since you received them. Your cost basis equals the value at the time of receipt.

How are liquidity pool tokens taxed?

Liquidity provision on Solana DEXs such as Raydium, Orca has complex tax implications. Depositing tokens may be a taxable event. Rewards are taxed as income upon receipt. Withdrawal can trigger capital gains based on price changes.

Can the IRS track Solana transactions?

Yes, the IRS can track Solana transactions. All Solana activity is recorded on a public blockchain that anyone, including tax authorities, can analyze. The IRS uses advanced blockchain analysis software to trace wallet addresses and connect them to individuals through exchange data, IP addresses, and other sources. Failing to report Solana transactions can lead to audits and penalties.