USDT is pegged 1:1 to the US dollar. The USDT/USD rate should always hover near $1.00. Small deviations (±0.05%) reflect exchange-level supply/demand imbalances and are short-lived.
Live USDT/USD rate tracking the dollar peg. Any deviation from $1.00 signals a premium or discount — typically caused by high demand during market stress or redemption delays.
USDT / USD CoinGecko
$0.9999+0.00%Now
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Tax · United States
Tax on USDT/USD Movements
The IRS treats cryptocurrency as property — even small deviations from the $1.00 peg create taxable capital gains or deductible capital losses on every disposal.
Capital Gain from Peg Deviation
You buy 10,000 USDT at $0.998 each, costing $9,980. You later sell at $1.003 each, receiving $10,030. Your capital gain is $50 ($10,030 − $9,980). This is reported on Form 8949 and Schedule D. If held over one year, the gain qualifies for long-term capital gains rates (0%, 15%, or 20%).
Capital Loss from Peg Deviation
You buy 10,000 USDT at $1.003 each, costing $10,030. You sell at $0.997 each, receiving $9,970. Your capital loss is $60 ($9,970 − $10,030). Up to $3,000 of net capital losses can offset ordinary income per year, with the remainder carried forward to future tax years.
Key Rules
Cryptocurrency is treated as property — every sale, swap, or use to purchase goods triggers a taxable disposition that must be reported on Form 8949.
Short-term gains (held ≤ 1 year) are taxed at ordinary income rates (10%–37%). Long-term gains (held > 1 year) are taxed at 0%, 15%, or 20% depending on income.
Proposed legislation may extend wash sale rules to crypto, preventing you from claiming a loss if you repurchase substantially identical tokens within 30 days.
Brokers and exchanges are required to issue Form 1099-DA starting from tax year 2025, reporting gross proceeds and cost basis to the IRS.
Tax disclaimer
General information only — not tax, legal, or financial advice. US tax law on digital assets is evolving. Consult a qualified CPA or tax attorney familiar with cryptocurrency taxation. IRS Virtual Currency FAQ.
FAQ
USDT/USD Questions
Temporary supply/demand imbalances on individual exchanges. During the March 2023 banking crisis, USDT traded at $1.02 on some venues as traders fled to stablecoins. Tether arbitrageurs quickly restore the peg by minting/redeeming USDT directly with Tether at $1.00.
A permanent depeg would mean Tether cannot honour $1.00 redemptions. Tether holds 82% of reserves in US Treasury bills (audited by KPMG, March 2026). Past stress events (Terra/Luna, FTX) caused brief deviations but the peg always recovered.
Bank deposits up to $250,000 are FDIC-insured. USDT has no government insurance — you carry Tether issuer risk. However, USDT provides 24/7 global transferability that bank dollars cannot match. Many traders hold both.
USAT is Tether's US-regulated stablecoin launched January 2026 under the GENIUS Act, issued through Anchorage Digital Bank with OCC supervision and Cantor Fitzgerald as custodian. USDT remains the global, offshore product. Both are pegged 1:1 to USD.
Bitfinex and Kraken typically have the deepest USDT/USD order books, with bid-side depth regularly exceeding $10M within 2% of mid price. Coinbase Exchange and Gemini also maintain significant liquidity.
