In the US, every Pump.fun buy and sell is a taxable disposal: the IRS treats crypto as property, so swapping SOL for a coin and the coin back to SOL each create a capital gain or loss. Creator fees and holder rewards are generally ordinary income when you receive them, and because Pump.fun sends no tax form, you work it all out from your wallet history.
Risk notice: Crypto trading is high risk and memecoins can go to zero in minutes. A losing year can still leave you with a tax bill if gains and losses land unevenly. This page is not financial advice or tax advice; only trade what you can afford to lose.
Facts on this page were checked October 23, 2026, from IRS, HMRC, CRA and ATO pages, Pump.fun's own docs and the sources linked below. This is a research-based guide, not tax advice. Rules change and your situation may differ; talk to a tax professional before you file.
How each Pump.fun activity is taxed (US)
| Activity | Likely US treatment | Source |
|---|---|---|
| Buy a coin with SOL or USDC | Disposal of the SOL or USDC; basis in the new coin | IRS FAQ 16-17 |
| Sell a coin for SOL | Capital gain or loss | IRS FAQ 16 |
| Coin graduates to PumpSwap | Generally not a sale; basis carries over | Awaken |
| Create a coin | Generally no income on creation | Awaken |
| Creator fees received | Ordinary income at fair market value when received | IRS FAQ 9 and 12 |
| Holder Rewards or Cashback received | Likely income; no specific IRS guidance | Awaken; see below |
| Coin goes to zero | Loss is clearest if you sell, even for dust | IRS memo 202302011 |
The general rules for Solana memecoins (short- vs long-term, Form 8949, cost basis methods) are in our Solana memecoin taxes guide. This page covers what is specific to Pump.fun.
Trading on Pump.fun
The IRS virtual currency FAQ says exchanging one virtual currency for another creates a capital gain or loss (FAQ 16). On Pump.fun that means:
- A buy is a sale of SOL. If your SOL rose in value since you acquired it, buying a memecoin realizes that gain.
- A sell is a sale of the coin. Gain or loss is the SOL value received in dollars minus your basis.
- Almost everything is short-term. Coins held one year or less produce short-term gains, taxed as ordinary income (IRS Topic 409). Net capital losses offset gains, then up to $3,000 of ordinary income a year, with the rest carried forward.
Fees. Pump.fun charges 1.25% on its bonding curve and a tiered fee on PumpSwap (Pump.fun fees; our Pump.fun fees guide). Per IRS FAQ 8, fees on a buy add to basis; the Form 8949 instructions treat selling costs as reducing proceeds. If you trade through a bot or terminal, its fee is treated the same way.
Graduation. When a coin's curve completes and it moves to PumpSwap, you still hold the same token. Awaken's guide says this generally does not trigger a sale (Awaken). Check that your tax software doesn't misread the migration as a sell.
Launching a coin
Creating a coin on Pump.fun is free, and the coin isn't worth anything until someone buys it. Awaken says creation doesn't necessarily create taxable income (Awaken).
What does have tax effects:
- Your dev buy. Buying your own coin at launch is a normal purchase: you dispose of SOL and get basis in the tokens.
- Selling your allocation. Each sale is a capital gain or loss against that basis. If you launch and sell coins often, the IRS could see this as a business rather than investing, which changes how the income is reported. That is a question for a professional.
- Fee-sharing. If you split creator fees with teammates, keep records of who is entitled to each share.
Creator fees, Holder Rewards and Cashback
Pump.fun pays creators a share of every trade: 0.30% on the bonding curve, and a tiered rate on canonical PumpSwap pools (Pump.fun fees, last updated October 17, 2026). Since September 2026, creators can instead route that share to holders through Holder Rewards, paid periodically to wallets holding at least $20 of the coin; Cashback mode is closed to new launches (The Defiant). More in Pump.fun creator fees explained.
How the IRS is likely to see each:
- Creator fees: income. The IRS says crypto received for services is ordinary income at fair market value in dollars when received, recorded on the ledger (FAQ 9 and 12). For independent contractors, it is self-employment income (FAQ 10). Awaken and others apply this to creator fees; whether it goes on Schedule 1 or Schedule C depends on whether launching coins is a trade or business. The dollar value you report becomes your basis in the SOL received.
- Holder Rewards: likely income, unclear. You receive SOL or USDC just for holding. There is no IRS guidance specific to this. The closest IRS analogy, airdrops (FAQ 23-24), treats tokens you can control as income when received. Track each payout's date and dollar value.
- Cashback on older coins: unclear. It may be a rebate that lowers your cost, or income. Awaken says cashback may be taxable income. Record it separately and ask a professional.
Timing matters. Income is generally recognized when you have control of the funds. Payouts that accrue in a vault until you claim them raise a timing question the IRS hasn't addressed for Pump.fun. Note both the accrual and claim dates.
Form 1099-DA and why Pump.fun won't send one
Brokers began reporting gross proceeds on Form 1099-DA for 2025 transactions, and basis for covered assets from 2026 (IRS broker FAQ). The rule for non-custodial DeFi brokers was repealed, signed April 10, 2025 (Cooley). Pump.fun's fee docs don't mention tax forms, and CoinLedger notes Pump.fun doesn't provide them (CoinLedger).
You may still get a 1099-DA from a custodial exchange where you bought the SOL. The IRS says you must report gains and income whether or not you receive a form (IRS).
How to export your Pump.fun history
Pump.fun is non-custodial, so your history lives on-chain under your wallet address.
- List every wallet. Phantom, any bot or terminal wallets, and the wallet you launched coins from. Bot users: see Axiom taxes and Trojan taxes.
- Add the addresses to tax software. CoinLedger says it reads Pump.fun activity from a public Solana address (CoinLedger); Awaken does the same. Never enter a seed phrase or private key. Compare tools in best crypto tax software for Solana, the CoinLedger review and the Koinly review.
- Watch wallet size limits. Koinly says it handles Solana wallets up to about 100,000 transactions, including spam; above that, it suggests importing from a start date or using split exports (Koinly feedback board).
- Keep a raw backup. Solscan lets you export a CSV from an account page by choosing the transaction type and period; use shorter periods if it times out.
- Tag creator fees and rewards as income, and internal transfers between your own wallets as transfers, so they aren't counted as sales.
- Spot-check. Compare a few trades with Solscan to confirm fees and graduations were read correctly.
UK, Canada and Australia: short notes
- UK. HMRC treats exchanging one token for another as a disposal for Capital Gains Tax (HMRC CRYPTO22100). Tokens from DeFi-type activity can be income; HMRC lists a £1,000 allowance for trading and miscellaneous income (gov.uk). UK share-pooling rules affect basis, so use software set to UK rules.
- Canada. The CRA counts trading one crypto-asset for another as a disposition at fair market value. Frequent trading, short holding periods and time spent studying markets can make gains business income, fully taxable, rather than capital gains, where half is taxable (CRA).
- Australia. The ATO says most crypto transactions can trigger a CGT event (ATO). Memecoins held under 12 months don't get the CGT discount.
Records to keep
- Wallet addresses and the date you started using each.
- Every creator fee, Holder Reward and cashback payout, with date and dollar value.
- Launch transactions for coins you created and your dev-buy amount.
- Your tax software's audit report and a Solscan CSV backup.
For more on Pump.fun itself, read what is Pump.fun and the Pump.fun review. This guide is not tax advice.