Polymarket Taxes: What to Know About Prediction Market & Crypto Tax

Polymarket taxes: the short answer

There is no single rule. Tax treatment of Polymarket (and prediction markets in general) depends on your country and sometimes on whether gains are classified as gambling, speculation, capital gains, or other income. Polymarket uses crypto (e.g. USDC), so crypto tax and reporting rules may also apply. The IRS has not issued specific guidance on event contracts in the US; other countries have their own rules. This is not tax advice. Keep records of your activity and consult a qualified tax professional for advice tailored to you.

US and crypto considerations (general context)

In the US, the IRS generally treats cryptocurrency as property, so disposing of or exchanging crypto can create taxable events. Polymarket activity involves USDC and on-chain transactions; how event-contract gains are characterized (e.g. capital gain vs ordinary income) is not clearly defined in public guidance. Regulatory views on prediction markets (e.g. CFTC) can also evolve. This is only general context—not advice. For US-specific reporting and character of income, a tax professional can help. For where Polymarket is available, see is Polymarket legal.

Record-keeping

Whatever your jurisdiction, keeping clear records helps you (and your tax advisor) report accurately. Consider documenting: deposits and withdrawals to/from Polymarket (dates, amounts, wallet addresses if relevant), trades (market, side, size, price, date), and realized gains or losses if you track them. Export or screenshot history where possible. HolyPoly provides leaderboard and playbook tools and an optional automated trading bot; we do not provide tax or legal advice. For copy-trading setup, see how to copy trade on Polymarket and how much money to copy trade.

Disclaimer: not tax advice

This article is for general information only. It does not constitute tax, legal, or financial advice. Tax laws and interpretations change; prediction markets and crypto are treated differently around the world. HolyPoly and Thales Intelligence LLC do not provide tax advice. You should consult a qualified tax professional for advice specific to your situation, jurisdiction, and activity. See our Terms of Service and Privacy Policy.

Frequently Asked Questions: Polymarket Taxes

Are Polymarket winnings taxable?

Tax treatment depends on your jurisdiction and how your country treats gambling, speculation, or capital gains. In the US, the IRS has not issued specific guidance on event contracts; crypto may be taxed as property or other income. This is not tax advice—consult a qualified tax professional for your situation.

Do I need to report Polymarket on my taxes?

Reporting requirements depend on where you live. In many countries, investment or gambling gains must be reported. Polymarket uses crypto (e.g. USDC); crypto transactions may have separate reporting rules. Keep records of deposits, trades, and withdrawals. This is not tax advice—consult a tax professional.

Is this Polymarket tax advice?

No. This article is for general information only and does not constitute tax, legal, or financial advice. Tax rules for prediction markets and crypto vary by country and change over time. You should consult a qualified tax professional for advice specific to your situation.