Updated October 23, 2025
Capital Gains: 1-13.3%Income Tax: 1-13.3%Quick Facts: California, United States Crypto Taxes
Capital Gains Tax
1-13.3%Income Tax Rate
1-13.3%Tax Summary
California taxes cryptocurrency similarly to federal rules, treating it as property. Gains from crypto transactions are subject to state income tax. Residents must report crypto activities on their state tax returns.
Capital Gains Tax
1-13.3%• Crypto capital gains are classified as short-term or long-term, taxed as ordinary income in California.
• State capital gains tax follows progressive income tax rates from 1% to 13.3%, with an additional 1% surcharge on incomes over $1 million.
• No specific exemptions for crypto gains, but standard deductions apply.
• Thresholds align with federal rules; long-term gains get no preferential rate at state level.
• State capital gains tax follows progressive income tax rates from 1% to 13.3%, with an additional 1% surcharge on incomes over $1 million.
• No specific exemptions for crypto gains, but standard deductions apply.
• Thresholds align with federal rules; long-term gains get no preferential rate at state level.
Income Tax
1-13.3%• Mining income is taxed as ordinary income upon receipt in California.
• Staking rewards are considered ordinary income when earned, taxed at state rates.
• California conforms to federal treatment of crypto income as miscellaneous income.
• Deductible expenses like electricity for mining can reduce taxable income.
• Staking rewards are considered ordinary income when earned, taxed at state rates.
• California conforms to federal treatment of crypto income as miscellaneous income.
• Deductible expenses like electricity for mining can reduce taxable income.
Reporting Requirements
• Report all crypto income and gains on California Form 540.
• Use Schedule CA for adjustments to federal income.
• File by April 15, or October 15 with extension.
• Use Schedule CA for adjustments to federal income.
• File by April 15, or October 15 with extension.
Special Notes
• California may impose sales tax on certain crypto transactions if considered taxable sales.
• Recent FTB guidance aligns with IRS on airdrops and forks as income.
• Non-residents with California-sourced crypto income must file state returns.
• Recent FTB guidance aligns with IRS on airdrops and forks as income.
• Non-residents with California-sourced crypto income must file state returns.
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%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: Varies (0% - 4.9%)Income: Varies (0% - 4.9%)
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 3-6.99%Income: 3-6.99%
Delaware
CG: 0% - 6.6%Income: 0% - 6.6%
Florida
CG: 0%Income: 0%
Georgia
CG: 1-5.75%Income: 1-5.75%
Hawaii
CG: 1.4% - 11%Income: 1.4% - 11%
Idaho
CG: 0-5.8%Income: 0-5.8%
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 3.05% state + 0-3.38% countyIncome: 3.05% state + 0-3.38% county
Iowa
CG: Varies (4.40% - 6.00%)Income: Varies (4.40% - 6.00%)
Kansas
CG: 3.1-5.7%Income: 3.1-5.7%
Kentucky
CG: 4.5%Income: 4.5%
Louisiana
CG: 1.85% - 4.25%Income: 1.85% - 4.25%
Maine
CG: 5.8% - 7.15%Income: 5.8% - 7.15%
Maryland
CG: Varies (2% - 5.75% state + 1.75% - 3.2% local)Income: Varies (2% - 5.75% state + 1.75% - 3.2% local)
Massachusetts
CG: 5-12%Income: 5%
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35% - 9.85%Income: 5.35% - 9.85%
Mississippi
CG: 0-5%Income: 0-5%
Missouri
CG: 1.5-5.3%Income: 1.5-5.3%
Montana
CG: 1%-6.9%Income: 1%-6.9%
Nebraska
CG: 2.46% - 6.64%Income: 2.46% - 6.64%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4% - 10.75%Income: 1.4% - 10.75%
California Crypto Tax FAQ
California taxes cryptocurrency similarly to federal rules, treating it as property. Gains from crypto transactions are subject to state income tax. Residents must report crypto activities on their state tax returns.
The state-level capital gains treatment in California is currently listed as 1-13.3%.
• Report all crypto income and gains on California Form 540.
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.