Updated May 10, 2026
Capital Gains: 2-6.99%Income Tax: 2-6.99%Tax Summary
Connecticut treats cryptocurrency as property, following federal IRS guidelines. Capital gains and crypto income are taxed as ordinary income at state rates of 2% to 6.99%. No unique state exemptions apply to crypto.
Quick facts for Connecticut, United States
Capital Gains Tax
2-6.99%Income Tax Rate
2-6.99%Capital Gains Tax
2-6.99%• Capital gains classified as short-term or long-term per federal rules.
• Taxed at ordinary state income tax rates; no preferential long-term rate.
• No crypto-specific exemptions or thresholds.
• Gains flow through federal AGI to CT return.
• Taxed at ordinary state income tax rates; no preferential long-term rate.
• No crypto-specific exemptions or thresholds.
• Gains flow through federal AGI to CT return.
Income Tax
2-6.99%• Mining income taxed as ordinary income at fair market value upon receipt.
• Staking rewards taxed as ordinary income when received.
• Follows federal treatment; no state deviations.
• Included in federal AGI for state taxation.
• Staking rewards taxed as ordinary income when received.
• Follows federal treatment; no state deviations.
• Included in federal AGI for state taxation.
Reporting Requirements
• Report all crypto transactions impacting income/gains on Form CT-1040.
• Starts with federal AGI; limited adjustments.
• Annual filing deadline: April 15.
• Federal extensions apply to state.
• Starts with federal AGI; limited adjustments.
• Annual filing deadline: April 15.
• Federal extensions apply to state.
Special Notes
• Progressive brackets: e.g., single filers 2% ($0+), up to 6.99% (over $500k).
• Proposed deduction for crypto investment fraud losses (HB 5115, 2026 session).
• Government entities prohibited from holding crypto (2025 law).
• Maintain detailed transaction records for audits.
• Proposed deduction for crypto investment fraud losses (HB 5115, 2026 session).
• Government entities prohibited from holding crypto (2025 law).
• Maintain detailed transaction records for audits.
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: 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)
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%
Connecticut Crypto Tax FAQ
Is cryptocurrency taxed in Connecticut?
Connecticut treats cryptocurrency as property, following federal IRS guidelines. Capital gains and crypto income are taxed as ordinary income at state rates of 2% to 6.99%. No unique state exemptions apply to crypto.
What is the crypto capital gains tax rate in Connecticut?
The state-level capital gains treatment in Connecticut is currently listed as 2-6.99%.
How do I report crypto taxes in Connecticut?
• Report all crypto transactions impacting income/gains on Form CT-1040.
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.