Does Polygon report to the IRS?

No. Polygon is a decentralized network and doesn't report user activity. However, exchanges you use (Coinbase, Kraken, etc.) do report, and the IRS can trace on-chain activity.

Is the MATIC to POL migration taxable?

Most tax experts agree the MATIC to POL token migration is not a taxable event since it's a 1:1 upgrade of the same token. Your cost basis and holding period should carry over.

Are bridge transactions taxable?

Bridging assets from Ethereum to Polygon is generally not a taxable event. However, you should track these transactions for cost basis purposes.

What's the best crypto tax tool for Polygon?

Both CoinLedger and Koinly support Polygon PoS. For Polygon zkEVM, CoinLedger and Crypto Tax Calculator offer direct support. Note that Polygon zkEVM is being deprecated in 2026.

Independent resource — not affiliated with Polygon Labs.

Polygon Tax Software Compared

Based on Polygon-specific support and user feedback from forums.

CoinLedger

Best for Polygon

✓ Polygon PoS & zkEVM support — both networks tracked via API
✓ Bridge merge tool — fix misclassified ETH ↔ Polygon bridge transactions
✓ DeFi coverage — QuickSwap, Aave, Uniswap, Balancer supported
− MATIC/POL migration may need manual review

See pricing — use code CRYPTOTAX10 for 10% off.

Try CoinLedger →

Alternative: Koinly

✓ More total integrations (900+ platforms, 200+ blockchains)
✓ MATIC/POL token migration guidance in help center
− Some bridge deposits not pulling correctly
− Staked MATIC display issues reported

See pricing — free preview available.

Try Koinly →

No tool is perfect — manual review is often needed for bridge transactions and token migrations.

Polygon Tax Issues to Know

MATIC to POL Token Migration

In September 2024, MATIC was upgraded to POL in a 1:1 migration. Most tax experts agree this is not a taxable event — your cost basis and holding period should carry over. However, the tokens have different contract addresses, so verify your tax software handles it correctly.

Bridge Transactions

Bridging assets from Ethereum mainnet to Polygon PoS is generally not taxable. Tax software may misclassify bridges as trades — look for "missing cost basis" warnings and use the bridge merge tool to fix.

Polygon zkEVM Deprecation

Polygon zkEVM is being deprecated by 2026 as Polygon transitions to the AggLayer architecture. If you have zkEVM transactions, ensure you export and track them before migration. CoinLedger supports Polygon zkEVM for tax reporting.

QuickSwap & DeFi Activity

Swaps on QuickSwap, Uniswap, or other DEXs are taxable events. LP rewards are taxable as income when received. Aave lending activity on Polygon follows the same tax rules as Ethereum mainnet.

FAQ

Does the Polygon network report to the IRS?

No. Polygon is a decentralized network and doesn't report user activity. However, centralized exchanges (Coinbase, Kraken, etc.) do report, and starting 2025, the IRS requires per-wallet cost basis tracking.

Is the MATIC to POL token migration taxable?

Most tax experts agree the September 2024 MATIC to POL migration is not a taxable event — it's a 1:1 token upgrade. Your cost basis and holding period should carry over. However, the IRS hasn't issued specific guidance.

Are bridge transactions from Ethereum taxable?

Bridging assets from Ethereum mainnet to Polygon is generally not a taxable event — you're moving the same asset between networks. However, you should track the transaction for cost basis continuity.

How are QuickSwap LP rewards taxed?

Liquidity provider rewards are taxable as ordinary income when received. The fair market value at receipt becomes your cost basis for future sales.

Sources

Last updated: February 2026