Uniswap (UNI) Taxes in the US 2026 – DEX Swaps, LP Income & Reporting

Uniswap is the largest DEX in the world – and every swap, liquidity provision, and UNI reward you earn has US tax implications.

Every Uniswap Swap Is a Taxable Event

When you swap tokens on Uniswap (e.g., ETH → USDC, WBTC → DAI), the IRS treats this as selling the input token and buying the output token. This means:

• Calculate gain/loss on the token you sold (proceeds = value of token received)
• Establish a new cost basis in the token you received (= fair market value at swap time)
• Gas fees paid in ETH are also a taxable ETH disposal

Providing Liquidity on Uniswap v2/v3

Depositing tokens into a Uniswap liquidity pool is treated as a taxable disposal of the deposited tokens, with the LP tokens received as the new asset at a new cost basis.

When you withdraw liquidity, you receive back tokens (possibly in different ratios due to impermanent loss) – this is also a taxable event.

LP Fee Income

Fees earned from providing liquidity on Uniswap v2 (automatically reinvested) are realized as income when you withdraw. On Uniswap v3, fees accrue separately and are taxable when collected.

UNI Token Taxes

UNI is the Uniswap governance token. Taxable events include:

• Selling UNI – capital gains tax on gain/loss
• Receiving UNI airdrops – ordinary income at FMV when received (the 2020 airdrop of 400 UNI was a significant income event for many)
• Voting with UNI – not a taxable event

Impermanent Loss – Not Tax Deductible Until Withdrawal

Impermanent loss is an unrealized economic loss while your tokens are in the pool. It only becomes a realized, potentially deductible loss when you actually withdraw your liquidity and the value of what you receive is less than your original cost basis.

Tracking Uniswap on Ethereum and L2s

Uniswap exists on Ethereum, Arbitrum, Optimism, Polygon, and Base. Track all chains where you trade. Use your wallet address to export transactions from each chain explorer, then import into crypto tax software.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.