Updated May 10, 2026
Capital Gains: 2.5%Income Tax: 2.5%Tax Summary
Arizona treats cryptocurrency as property, following federal tax rules. Capital gains and income from crypto are taxed at the state's flat 2.5% income tax rate. This low flat rate applies uniformly without brackets.
Quick facts for Arizona, United States
Capital Gains Tax
2.5%Income Tax Rate
2.5%Capital Gains Tax
2.5%• Crypto capital gains classified per federal rules: short-term as ordinary income, long-term at preferential federal rates.
• State taxes all capital gains as ordinary income at flat 2.5% rate.
• No crypto-specific exemptions or thresholds; standard deductions apply.
• Gas fees for virtual currency or NFT transactions subtract from cost basis (HB2204).
• State taxes all capital gains as ordinary income at flat 2.5% rate.
• No crypto-specific exemptions or thresholds; standard deductions apply.
• Gas fees for virtual currency or NFT transactions subtract from cost basis (HB2204).
Income Tax
2.5%• Mining income taxed as ordinary income at fair market value when mined.
• Staking rewards taxed as ordinary income at fair market value when received.
• Follows federal income tax classification for crypto activities.
• All taxed at Arizona's flat 2.5% income tax rate.
• Staking rewards taxed as ordinary income at fair market value when received.
• Follows federal income tax classification for crypto activities.
• All taxed at Arizona's flat 2.5% income tax rate.
Reporting Requirements
• Report crypto transactions on federal Form 8949 and Schedule D; amounts flow to Arizona Form 140.
• No state-specific crypto reporting forms required.
• File Arizona resident return (Form 140) if federal AGI exceeds filing thresholds (e.g., $15,750 for singles).
• Primary deadline: April 15; automatic 6-month extension available.
• No state-specific crypto reporting forms required.
• File Arizona resident return (Form 140) if federal AGI exceeds filing thresholds (e.g., $15,750 for singles).
• Primary deadline: April 15; automatic 6-month extension available.
Special Notes
• Arizona has a flat 2.5% individual income tax rate for 2026, one of the lowest in the US.
• HB2204 (2022) provides state conformity and gas fee deductions for virtual currency/NFTs.
• Proposed 2026 bills seek crypto property tax exemptions; not enacted for income tax.
• Some state agencies may accept cryptocurrency payments.
• HB2204 (2022) provides state conformity and gas fee deductions for virtual currency/NFTs.
• Proposed 2026 bills seek crypto property tax exemptions; not enacted for income tax.
• Some state agencies may accept cryptocurrency payments.
Other US States
Compare state-level crypto tax differences across the United States.
Alabama
CG: 2-5%Income: 2-5%
Alaska
CG: 0%Income: 0%
Arkansas
CG: 0-3.7% (50% deduction on long-term gains)Income: 0-3.7%
California
CG: 1%-13.3%Income: 1%-13.3%
Colorado
CG: 4.4% (flat rate)Income: 4.4% (flat rate)
Connecticut
CG: 2-6.99%Income: 2-6.99%
Delaware
CG: 2.2%-6.6%Income: 2.2%-6.6%
District of Columbia
CG: 4-10.75% (taxed as ordinary income)Income: 4-10.75%
Florida
CG: 0%Income: 0%
Georgia
CG: 5.19%Income: 5.19%
Hawaii
CG: Varies: short-term 1.4-11%, net long-term up to 7.25%Income: 1.4-11%
Idaho
CG: 0-5.3%Income: 0-5.3%
Illinois
CG: 4.95% (flat rate)Income: 4.95% (flat rate)
Indiana
CG: 2.95% state + 0.5%-3% local county (varies)Income: 2.95% state + 0.5%-3% local county (varies)
Iowa
CG: 3.8%Income: 3.8%
Kansas
CG: 5.2%-5.58%Income: 5.2%-5.58%
Kentucky
CG: 3.5%Income: 3.5%
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-9.15% (taxed as ordinary income)Income: 5.8%-9.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.2% local; +2% surtax on net gains if FAGI >$350,000Income: 2%-6.5% state + 2.25%-3.2% local (varies by county)
Massachusetts
CG: 5% (LTCG), 8.5% (STCG) + 4% surtax >$1,083,150Income: 5% + 4% surtax >$1,083,150
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35%-9.85% (+1% NIIT on net investment income > $1M)Income: 5.35%-9.85%
Mississippi
CG: 0% on first $10,000; 4.4% thereafterIncome: 0% on first $10,000; 4.4% thereafter
Missouri
CG: 0%Income: 2%-4.7%
Montana
CG: Long-term: 3.0%-4.1%; Short-term: 4.7%-5.65%Income: 4.7%-5.65%
Nebraska
CG: 2.46%-4.55% (taxed as ordinary income)Income: 2.46%-4.55%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4%-10.75% (as ordinary income)Income: 1.4%-10.75%
New Mexico
CG: 1.5% - 5.9%Income: 1.5% - 5.9%
New York
CG: 4-10.9% (state) + 3.078-3.876% (NYC)Income: 4-10.9% (state) + 3.078-3.876% (NYC)
North Carolina
CG: 3.99% (taxed as ordinary income)Income: 3.99%
North Dakota
CG: Short-term: 0%-2.5%; Long-term: effective 0%-1.5% after 40% exclusionIncome: 0%-2.5%
Ohio
CG: 2.75% (flat on income > $26,050)Income: 2.75% (flat on income > $26,050)
Oklahoma
CG: 0%-4.5%Income: 0%-4.5%
Oregon
CG: 4.75%-9.9%Income: 4.75%-9.9%
Pennsylvania
CG: 3.07% (flat rate)Income: 3.07% (flat rate)
Rhode Island
CG: 3.75%-5.99%Income: 3.75%-5.99%
South Carolina
CG: 1.99%-5.21% (44% deduction for net long-term capital gains)Income: 1.99%-5.21%
South Dakota
CG: 0%Income: 0%
Tennessee
CG: 0%Income: 0%
Texas
CG: 0%Income: 0%
Utah
CG: 4.5%Income: 4.5%
Vermont
CG: 3.35%-8.75%Income: 3.35%-8.75%
Virginia
CG: 2-5.75%Income: 2-5.75%
Washington
CG: 7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted)Income: 0% (no state income tax)
West Virginia
CG: 2.11% - 4.58% (taxed as ordinary income)Income: 2.11% - 4.58%
Wisconsin
CG: 3.5%-7.65% (30% subtraction for long-term)Income: 3.5%-7.65%
Wyoming
CG: 0%Income: 0%
Arizona Crypto Tax FAQ
Is cryptocurrency taxed in Arizona?
Arizona treats cryptocurrency as property, following federal tax rules. Capital gains and income from crypto are taxed at the state's flat 2.5% income tax rate. This low flat rate applies uniformly without brackets.
What is the crypto capital gains tax rate in Arizona?
The state-level capital gains treatment in Arizona is currently listed as 2.5%.
How do I report crypto taxes in Arizona?
• Report crypto transactions on federal Form 8949 and Schedule D; amounts flow to Arizona Form 140.
Compare With Other Countries
Disclaimer: This information is AI-generated and for educational purposes only. Tax laws are complex and subject to change. Always consult with a qualified tax professional for advice specific to your situation.