🇺🇸
United States
Cryptocurrency Tax Information
Updated October 23, 2025
Capital Gains: 0-37%Income Tax: 10-37%Tax Summary
In the United States, cryptocurrencies are treated as property by the IRS. Gains from selling or exchanging crypto are subject to capital gains tax. Income from activities like mining or staking is taxed as ordinary income.
Capital Gains Tax
0-37%- Crypto capital gains are classified as short-term (held ≤1 year) or long-term (held >1 year).
- Gains are taxable when crypto is sold, traded, or used to purchase goods/services.
- No exemptions for small gains; all realized gains are taxable.
- Thresholds follow standard capital gains brackets; short-term taxed at ordinary rates (10-37%), long-term at 0-20%.
- Key rule: Cost basis must be tracked; FIFO method is common but others like LIFO allowed if specified.
- Gains are taxable when crypto is sold, traded, or used to purchase goods/services.
- No exemptions for small gains; all realized gains are taxable.
- Thresholds follow standard capital gains brackets; short-term taxed at ordinary rates (10-37%), long-term at 0-20%.
- Key rule: Cost basis must be tracked; FIFO method is common but others like LIFO allowed if specified.
Income Tax
10-37%- Mining income is taxed as ordinary income at fair market value when received.
- Staking rewards are taxed as ordinary income upon receipt, at FMV.
- Other crypto income, like airdrops or hard forks, is taxed as ordinary income when control is gained.
- Key rule: Expenses related to mining/staking can be deducted.
- Key rule: Income is reportable even if crypto is not sold.
- Staking rewards are taxed as ordinary income upon receipt, at FMV.
- Other crypto income, like airdrops or hard forks, is taxed as ordinary income when control is gained.
- Key rule: Expenses related to mining/staking can be deducted.
- Key rule: Income is reportable even if crypto is not sold.
State-by-State Tax Breakdown
Tax rates vary by state in United States. Click a state to see detailed information.
Alabama
CG: 2-5%Income: 2-5%
Alabama
CG: 2-5%Income: 2-5%
Summary
Alabama taxes cryptocurrency as property, following federal IRS guidelines. Residents must report crypto transactions on state income tax returns. Tax rates are progressive, ranging from 2% to 5%.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Alabama.
• State taxes long-term and short-term gains at income tax rates of 2%, 4%, or 5% based on taxable income.
• No specific exemptions for crypto gains; standard deductions apply.
• Gains are included in Alabama adjusted gross income.
• State taxes long-term and short-term gains at income tax rates of 2%, 4%, or 5% based on taxable income.
• No specific exemptions for crypto gains; standard deductions apply.
• Gains are included in Alabama adjusted gross income.
Income Tax
• Mining income is taxed as ordinary income at state rates upon receipt.
• Staking rewards are treated as ordinary income when earned.
• Alabama follows federal rules, taxing crypto income progressively.
• Deductible expenses can offset income.
• Staking rewards are treated as ordinary income when earned.
• Alabama follows federal rules, taxing crypto income progressively.
• Deductible expenses can offset income.
Reporting Requirements
• Report all crypto income and gains on Alabama Form 40.
• Use Schedule D for capital gains if applicable.
• File by April 15 annually, or October 15 with extension.
• Use Schedule D for capital gains if applicable.
• File by April 15 annually, or October 15 with extension.
Special Notes
• Alabama conforms to federal virtual currency treatment per IRS Notice 2014-21.
• No sales tax on crypto transactions in Alabama.
• Recent updates align with federal crypto reporting requirements.
• No sales tax on crypto transactions in Alabama.
• Recent updates align with federal crypto reporting requirements.
Alaska
CG: 0%Income: 0%
Alaska
CG: 0%Income: 0%
Summary
Alaska does not impose a state income tax. Cryptocurrency transactions are not subject to state-level taxes. Residents must comply with federal tax rules on crypto.
Capital Gains Tax
• Crypto capital gains are not taxed at the state level in Alaska.
• Alaska follows federal classification of crypto as property for capital gains.
• No state-specific exemptions or thresholds apply due to absence of state income tax.
• Gains from selling or trading crypto are only subject to federal taxes.
• Alaska follows federal classification of crypto as property for capital gains.
• No state-specific exemptions or thresholds apply due to absence of state income tax.
• Gains from selling or trading crypto are only subject to federal taxes.
Income Tax
• Mining income is not taxed at the state level in Alaska.
• Staking rewards are not subject to state income tax.
• Alaska has no state income tax, so no state rules apply to crypto income.
• All crypto income is only taxable federally.
• Staking rewards are not subject to state income tax.
• Alaska has no state income tax, so no state rules apply to crypto income.
• All crypto income is only taxable federally.
Reporting Requirements
• No state reporting required for crypto due to lack of state income tax.
• No state-specific forms or documentation needed.
• Federal reporting deadlines apply, but no state deadlines.
• No state-specific forms or documentation needed.
• Federal reporting deadlines apply, but no state deadlines.
Special Notes
• Alaska has no state sales tax on crypto transactions.
• Recent federal changes, like IRS guidance on crypto, apply to Alaska residents.
• Consult a tax professional for federal compliance and any local borough taxes.
• Recent federal changes, like IRS guidance on crypto, apply to Alaska residents.
• Consult a tax professional for federal compliance and any local borough taxes.
Arizona
CG: 2.5%Income: 2.5%
Arizona
CG: 2.5%Income: 2.5%
Summary
Arizona taxes cryptocurrency under state income tax laws. Crypto is treated as property, similar to federal guidelines. Residents must report gains and income on state returns.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Arizona.
- State taxes capital gains at the flat income tax rate of 2.5%.
- No specific exemptions or thresholds for crypto gains beyond standard deductions.
- Gains calculated as federal adjusted gross income includes them.
- State taxes capital gains at the flat income tax rate of 2.5%.
- No specific exemptions or thresholds for crypto gains beyond standard deductions.
- Gains calculated as federal adjusted gross income includes them.
Income Tax
- Mining income is taxed as ordinary income at 2.5% in Arizona.
- Staking rewards are considered ordinary income and taxed at the state rate.
- Arizona conforms to federal treatment of crypto income.
- Deductible expenses can reduce taxable income.
- Staking rewards are considered ordinary income and taxed at the state rate.
- Arizona conforms to federal treatment of crypto income.
- Deductible expenses can reduce taxable income.
Reporting Requirements
- Report crypto income and gains on Arizona Form 140.
- Include federal Schedule D for capital gains details.
- Filing deadline is April 15, or extended to October 15.
- Include federal Schedule D for capital gains details.
- Filing deadline is April 15, or extended to October 15.
Special Notes
- Arizona has a flat 2.5% income tax rate starting 2023.
- No state sales tax on crypto purchases.
- Consult a tax professional for complex transactions.
- No state sales tax on crypto purchases.
- Consult a tax professional for complex transactions.
Arkansas
CG: Varies (0% - 4.9%)Income: Varies (0% - 4.9%)
Arkansas
CG: Varies (0% - 4.9%)Income: Varies (0% - 4.9%)
Summary
In Arkansas, cryptocurrency is treated as property for tax purposes, following federal guidelines. Capital gains and income from crypto activities are subject to state income tax. Taxation aligns with progressive state income tax rates.
Capital Gains Tax
- Crypto capital gains are classified as short-term or long-term based on holding period of over one year.
- State-specific rules tax all capital gains as ordinary income at progressive rates.
- No specific exemptions or thresholds for crypto; follows general income tax brackets.
- Key rule: Gains must be reported if they contribute to taxable income requiring a state return.
- State-specific rules tax all capital gains as ordinary income at progressive rates.
- No specific exemptions or thresholds for crypto; follows general income tax brackets.
- Key rule: Gains must be reported if they contribute to taxable income requiring a state return.
Income Tax
- Mining income is taxed as ordinary income at state progressive rates.
- Staking rewards are taxed as ordinary income upon receipt.
- State-specific rules follow federal classification for crypto income.
- Key rule: Income from crypto is added to federal AGI for state taxation.
- Staking rewards are taxed as ordinary income upon receipt.
- State-specific rules follow federal classification for crypto income.
- Key rule: Income from crypto is added to federal AGI for state taxation.
Reporting Requirements
- Report crypto gains and income on state tax return if filing is required.
- Use Form AR1000F for full-year residents or AR1000NR for non-residents.
- Key deadline: April 15, or October 15 if extended.
- Use Form AR1000F for full-year residents or AR1000NR for non-residents.
- Key deadline: April 15, or October 15 if extended.
Special Notes
- Arkansas has no specific crypto tax laws; follows federal treatment.
- Recent legislation like the 2023 Arkansas Data Centers Act supports crypto mining but does not alter tax rules.
- No state sales tax on crypto-to-crypto trades; may apply to purchases with crypto.
- Recent legislation like the 2023 Arkansas Data Centers Act supports crypto mining but does not alter tax rules.
- No state sales tax on crypto-to-crypto trades; may apply to purchases with crypto.
California
CG: 1-13.3%Income: 1-13.3%
California
CG: 1-13.3%Income: 1-13.3%
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
• 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
• 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.
Colorado
CG: 4.4%Income: 4.4%
Colorado
CG: 4.4%Income: 4.4%
Summary
Colorado treats cryptocurrency as property, similar to federal guidelines. Residents pay state income tax on crypto gains and income at a flat rate. Crypto transactions must be reported on state tax returns.
Capital Gains Tax
- Crypto capital gains are classified as capital assets in Colorado, taxed as ordinary income.
- State taxes capital gains at the flat income tax rate of 4.4%, with no separate long-term rate.
- No specific exemptions for crypto gains, but standard deductions and credits apply.
- Gains from sales, trades, or disposals are included in Colorado taxable income.
- State taxes capital gains at the flat income tax rate of 4.4%, with no separate long-term rate.
- No specific exemptions for crypto gains, but standard deductions and credits apply.
- Gains from sales, trades, or disposals are included in Colorado taxable income.
Income Tax
- Mining income is taxed as ordinary income in Colorado at the state rate.
- Staking rewards are treated as ordinary income, taxable upon receipt.
- Colorado follows federal rules for crypto income classification.
- All crypto-related income is subject to the flat 4.4% state income tax after federal adjustments.
- Staking rewards are treated as ordinary income, taxable upon receipt.
- Colorado follows federal rules for crypto income classification.
- All crypto-related income is subject to the flat 4.4% state income tax after federal adjustments.
Reporting Requirements
- Report all crypto income and gains on Colorado state tax return.
- Use Form DR 0104 for individual income tax filing.
- Filing deadline is April 15, or October 15 with extension.
- Use Form DR 0104 for individual income tax filing.
- Filing deadline is April 15, or October 15 with extension.
Special Notes
- Colorado reduced its flat tax rate to 4.4% for tax year 2023 from 4.55% in 2022.
- The state conforms to IRS guidance on virtual currency.
- No sales tax on crypto purchases, but use tax may apply for certain transactions.
- Consult a tax professional for complex crypto activities like NFTs or DeFi.
- The state conforms to IRS guidance on virtual currency.
- No sales tax on crypto purchases, but use tax may apply for certain transactions.
- Consult a tax professional for complex crypto activities like NFTs or DeFi.
Connecticut
CG: 3-6.99%Income: 3-6.99%
Connecticut
CG: 3-6.99%Income: 3-6.99%
Summary
Connecticut taxes cryptocurrency under federal guidelines as property. Capital gains and income from crypto are subject to state income tax. There are no specific state crypto taxes beyond federal alignment.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Connecticut.
• State taxes capital gains at progressive income tax rates, no separate capital gains tax.
• Exemptions include federal deductions; no state-specific thresholds for crypto.
• Gains calculated as sale price minus cost basis, taxed upon realization.
• State taxes capital gains at progressive income tax rates, no separate capital gains tax.
• Exemptions include federal deductions; no state-specific thresholds for crypto.
• Gains calculated as sale price minus cost basis, taxed upon realization.
Income Tax
• Mining income is taxed as ordinary income at receipt in Connecticut.
• Staking rewards are taxed as ordinary income when received.
• Progressive state income tax applies to all crypto-related income.
• Deduct mining expenses if business-related; report on state return.
• Staking rewards are taxed as ordinary income when received.
• Progressive state income tax applies to all crypto-related income.
• Deduct mining expenses if business-related; report on state return.
Reporting Requirements
• Report all crypto income and gains on state tax return.
• Use Form CT-1040 for residents; include federal Schedule 1 details.
• Filing deadline is April 15, or October 15 with extension.
• Use Form CT-1040 for residents; include federal Schedule 1 details.
• Filing deadline is April 15, or October 15 with extension.
Special Notes
• Connecticut follows IRS crypto guidance closely.
• Recent proposals for digital asset reporting, but no major changes yet.
• Consult a tax professional for complex transactions like airdrops or forks.
• Recent proposals for digital asset reporting, but no major changes yet.
• Consult a tax professional for complex transactions like airdrops or forks.
Delaware
CG: 0% - 6.6%Income: 0% - 6.6%
Delaware
CG: 0% - 6.6%Income: 0% - 6.6%
Summary
Delaware taxes cryptocurrency as property, following federal guidelines. State income tax applies to crypto gains and income. There is no state sales tax on crypto transactions.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Delaware.
• State capital gains are taxed at progressive income tax rates from 0% to 6.6%.
• Exemptions include the first $2,000 of income taxed at 0%.
• Long-term and short-term gains are both taxed as ordinary income, with no preferential rates.
• State capital gains are taxed at progressive income tax rates from 0% to 6.6%.
• Exemptions include the first $2,000 of income taxed at 0%.
• Long-term and short-term gains are both taxed as ordinary income, with no preferential rates.
Income Tax
• Mining income is taxed as ordinary income upon receipt in Delaware.
• Staking rewards are taxed as ordinary income when earned.
• State income tax follows federal classification for crypto income.
• Deductions for mining expenses may apply if itemized.
• Staking rewards are taxed as ordinary income when earned.
• State income tax follows federal classification for crypto income.
• Deductions for mining expenses may apply if itemized.
Reporting Requirements
• Report all taxable crypto income and gains on state tax returns.
• Use Delaware Form 200-01 for residents or Form 200-02 for non-residents.
• Filing deadline is April 30 for most taxpayers.
• Use Delaware Form 200-01 for residents or Form 200-02 for non-residents.
• Filing deadline is April 30 for most taxpayers.
Special Notes
• Delaware conforms closely to IRS rules for crypto taxation.
• No specific crypto tax legislation; treated like other assets.
• Consult a tax professional for complex transactions like airdrops or forks.
• No specific crypto tax legislation; treated like other assets.
• Consult a tax professional for complex transactions like airdrops or forks.
Florida
CG: 0%Income: 0%
Florida
CG: 0%Income: 0%
Summary
Florida does not impose a state income tax. Cryptocurrency transactions are exempt from state-level capital gains and income taxes. Federal taxes on crypto still apply to Florida residents.
Capital Gains Tax
• Crypto capital gains are not taxed at the state level in Florida.
• Florida follows federal classification of crypto as property for gains.
• No state-specific exemptions or thresholds since no tax applies.
• Residents only pay federal capital gains tax on crypto sales or disposals.
• Florida follows federal classification of crypto as property for gains.
• No state-specific exemptions or thresholds since no tax applies.
• Residents only pay federal capital gains tax on crypto sales or disposals.
Income Tax
• Mining income is not subject to state income tax in Florida.
• Staking rewards are exempt from state taxation.
• No state-specific income tax rules apply due to absence of state income tax.
• All crypto income is only taxable federally.
• Staking rewards are exempt from state taxation.
• No state-specific income tax rules apply due to absence of state income tax.
• All crypto income is only taxable federally.
Reporting Requirements
• No state reporting required for crypto income or gains.
• Florida does not require state income tax forms for individuals.
• Federal reporting deadlines apply, but no state-specific ones.
• Florida does not require state income tax forms for individuals.
• Federal reporting deadlines apply, but no state-specific ones.
Special Notes
• Florida is considered crypto-friendly due to no state taxes.
• Sales tax may apply to certain crypto transactions if treated as goods.
• Recent legislation supports blockchain and crypto innovation in the state.
• Always consult a tax professional for federal compliance.
• Sales tax may apply to certain crypto transactions if treated as goods.
• Recent legislation supports blockchain and crypto innovation in the state.
• Always consult a tax professional for federal compliance.
Georgia
CG: 1-5.75%Income: 1-5.75%
Georgia
CG: 1-5.75%Income: 1-5.75%
Summary
In Georgia, cryptocurrency is taxed at the state level in addition to federal taxes. Capital gains from crypto are treated as ordinary income and subject to state income tax rates. Residents must report crypto transactions on their state tax returns if they meet filing requirements.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Georgia.
• State-specific rules tax net capital gains at the same progressive rates as other income, ranging from 1% to 5.75%.
• No specific exemptions or thresholds for crypto gains beyond general income tax brackets.
• Long-term and short-term gains are both taxed as ordinary income, with no preferential rate.
• State-specific rules tax net capital gains at the same progressive rates as other income, ranging from 1% to 5.75%.
• No specific exemptions or thresholds for crypto gains beyond general income tax brackets.
• Long-term and short-term gains are both taxed as ordinary income, with no preferential rate.
Income Tax
• Mining income is taxed as ordinary income in Georgia upon receipt.
• Staking rewards are treated as ordinary income when earned.
• State income tax applies progressively from 1% to 5.75% on crypto-related income.
• Deductions for expenses like mining equipment may reduce taxable income.
• Staking rewards are treated as ordinary income when earned.
• State income tax applies progressively from 1% to 5.75% on crypto-related income.
• Deductions for expenses like mining equipment may reduce taxable income.
Reporting Requirements
• Report crypto income, gains, and losses on Georgia state tax return if filing is required.
• Use Form 500 for individual income tax, including Schedule 1 for capital gains.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
• Use Form 500 for individual income tax, including Schedule 1 for capital gains.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
Special Notes
• Georgia conforms to federal IRC for crypto taxation, so follow IRS guidelines.
• Recent changes include potential alignment with federal virtual currency reporting rules.
• Consult a tax professional for complex crypto activities like DeFi or NFTs.
• Recent changes include potential alignment with federal virtual currency reporting rules.
• Consult a tax professional for complex crypto activities like DeFi or NFTs.
Hawaii
CG: 1.4% - 11%Income: 1.4% - 11%
Hawaii
CG: 1.4% - 11%Income: 1.4% - 11%
Summary
Hawaii taxes cryptocurrency gains and income at the state level in addition to federal taxes. Crypto is treated as property, similar to IRS guidelines. Residents must report crypto activities on state income tax returns.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Hawaii.
- State taxes long-term and short-term gains at progressive income tax rates.
- No specific exemptions for crypto gains; standard deductions apply.
- Thresholds follow state income brackets, with top rate of 11% for high earners.
- State taxes long-term and short-term gains at progressive income tax rates.
- No specific exemptions for crypto gains; standard deductions apply.
- Thresholds follow state income brackets, with top rate of 11% for high earners.
Income Tax
- Mining income is taxed as ordinary income when received in Hawaii.
- Staking rewards are considered ordinary income upon receipt.
- State follows federal treatment of crypto income as taxable events.
- Income from airdrops or forks is taxable at fair market value.
- Staking rewards are considered ordinary income upon receipt.
- State follows federal treatment of crypto income as taxable events.
- Income from airdrops or forks is taxable at fair market value.
Reporting Requirements
- Report all crypto income and gains on Hawaii state tax returns.
- Use Form N-11 for residents or N-15 for non-residents.
- Filing deadline is April 20, or the next business day if it falls on a weekend.
- Use Form N-11 for residents or N-15 for non-residents.
- Filing deadline is April 20, or the next business day if it falls on a weekend.
Special Notes
- Hawaii conforms to federal tax code for virtual currency treatment.
- No state sales tax on crypto-to-crypto trades.
- Recent updates align with IRS guidance on DeFi and NFTs.
- Consult a tax professional for complex transactions.
- No state sales tax on crypto-to-crypto trades.
- Recent updates align with IRS guidance on DeFi and NFTs.
- Consult a tax professional for complex transactions.
Idaho
CG: 0-5.8%Income: 0-5.8%
Idaho
CG: 0-5.8%Income: 0-5.8%
Summary
Idaho taxes cryptocurrency as property, following federal guidelines. Capital gains and income from crypto are subject to state income tax. Residents must report crypto transactions on state returns if they meet filing thresholds.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Idaho.
- State taxes capital gains at the same rate as regular income, with a flat rate of 5.8% for 2023.
- Exemptions include standard deductions and personal exemptions, potentially reducing taxable gains to zero for low-income filers.
- Long-term and short-term gains are both taxed as ordinary income without preferential rates.
- State taxes capital gains at the same rate as regular income, with a flat rate of 5.8% for 2023.
- Exemptions include standard deductions and personal exemptions, potentially reducing taxable gains to zero for low-income filers.
- Long-term and short-term gains are both taxed as ordinary income without preferential rates.
Income Tax
- Mining income is taxed as ordinary income upon receipt in Idaho.
- Staking rewards are treated as ordinary income when earned.
- Idaho follows federal rules for crypto income taxation.
- Deductions for mining expenses may apply if properly documented.
- Staking rewards are treated as ordinary income when earned.
- Idaho follows federal rules for crypto income taxation.
- Deductions for mining expenses may apply if properly documented.
Reporting Requirements
- Report crypto gains, losses, and income on Idaho state tax return if filing is required.
- Use Idaho Form 40 for individuals or Form 41 for trusts/estates.
- Filing deadline is April 15, or the next business day if it falls on a weekend/holiday.
- Use Idaho Form 40 for individuals or Form 41 for trusts/estates.
- Filing deadline is April 15, or the next business day if it falls on a weekend/holiday.
Special Notes
- Idaho does not impose sales tax on cryptocurrency purchases or sales.
- Recent tax reforms in 2023 introduced a flat 5.8% income tax rate.
- Consult a tax professional for complex crypto transactions, as state rules align closely with IRS guidelines.
- No specific crypto mining incentives or exemptions in Idaho.
- Recent tax reforms in 2023 introduced a flat 5.8% income tax rate.
- Consult a tax professional for complex crypto transactions, as state rules align closely with IRS guidelines.
- No specific crypto mining incentives or exemptions in Idaho.
Illinois
CG: 4.95%Income: 4.95%
Illinois
CG: 4.95%Income: 4.95%
Summary
Illinois treats cryptocurrency as property for tax purposes, similar to federal guidelines. Crypto transactions are subject to state income tax at a flat rate. Residents must report crypto income and gains on their state tax returns.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Illinois.
- Illinois taxes capital gains at the flat state income tax rate of 4.95% with no separate capital gains tax.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains are calculated based on federal adjusted gross income, with state adjustments possible.
- Illinois taxes capital gains at the flat state income tax rate of 4.95% with no separate capital gains tax.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains are calculated based on federal adjusted gross income, with state adjustments possible.
Income Tax
- Mining income is taxed as ordinary income at the time of receipt in Illinois.
- Staking rewards are treated as ordinary income when earned or received.
- Illinois applies its flat 4.95% income tax to all crypto-related income.
- Income must be reported based on fair market value in USD at the time of receipt.
- Staking rewards are treated as ordinary income when earned or received.
- Illinois applies its flat 4.95% income tax to all crypto-related income.
- Income must be reported based on fair market value in USD at the time of receipt.
Reporting Requirements
- Report all crypto income and gains on Illinois state tax returns if you file federal returns or meet income thresholds.
- Use Form IL-1040 for individual income tax filing.
- Key deadline is April 15, or the federal due date if extended.
- Use Form IL-1040 for individual income tax filing.
- Key deadline is April 15, or the federal due date if extended.
Special Notes
- Illinois does not impose sales tax on cryptocurrency transactions treated as currency.
- Recent guidance aligns with IRS on crypto reporting, including Form 1099 requirements.
- Consult a tax professional for complex transactions like NFTs or DeFi.
- Recent guidance aligns with IRS on crypto reporting, including Form 1099 requirements.
- Consult a tax professional for complex transactions like NFTs or DeFi.
Indiana
CG: 3.05% state + 0-3.38% countyIncome: 3.05% state + 0-3.38% county
Indiana
CG: 3.05% state + 0-3.38% countyIncome: 3.05% state + 0-3.38% county
Summary
In Indiana, cryptocurrency transactions are subject to state income tax in addition to federal taxes. Crypto is treated as property, with gains and income taxed at the state's flat rate. Local county income taxes may add to the total effective rate.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Indiana, following federal treatment as property.
• State-specific rules tax net capital gains at the flat 3.05% state income tax rate plus local county rates.
• No specific exemptions for crypto gains; standard state deductions and credits apply if income thresholds are met.
• Key rules: Long-term and short-term gains are both taxed as ordinary income; losses can offset gains and up to $3,000 of ordinary income.
• State-specific rules tax net capital gains at the flat 3.05% state income tax rate plus local county rates.
• No specific exemptions for crypto gains; standard state deductions and credits apply if income thresholds are met.
• Key rules: Long-term and short-term gains are both taxed as ordinary income; losses can offset gains and up to $3,000 of ordinary income.
Income Tax
• Mining income is taxed as ordinary income in Indiana upon receipt, valued at fair market value.
• Staking rewards are taxed as ordinary income when received, based on their market value at that time.
• State-specific rules follow federal guidelines, taxing crypto income at the flat state rate plus county taxes.
• Key rules: Airdrops and forks are taxable as income; income must be reported if above filing thresholds.
• Staking rewards are taxed as ordinary income when received, based on their market value at that time.
• State-specific rules follow federal guidelines, taxing crypto income at the flat state rate plus county taxes.
• Key rules: Airdrops and forks are taxable as income; income must be reported if above filing thresholds.
Reporting Requirements
• Report all crypto income, gains, and losses on state tax returns if filing is required.
• Use Indiana Form IT-40 for individuals; attach federal Schedule 1 or D if applicable.
• Key deadlines: State returns due by April 15, or October 15 if extended, matching federal deadlines.
• Use Indiana Form IT-40 for individuals; attach federal Schedule 1 or D if applicable.
• Key deadlines: State returns due by April 15, or October 15 if extended, matching federal deadlines.
Special Notes
• Indiana conforms to federal Internal Revenue Code for crypto taxation definitions.
• Recent change: State income tax rate reduced to 3.05% effective 2024 from 3.15%.
• County taxes vary by location; check local rates for accurate total.
• No sales tax on crypto transactions in Indiana, but use tax may apply for purchases.
• Recent change: State income tax rate reduced to 3.05% effective 2024 from 3.15%.
• County taxes vary by location; check local rates for accurate total.
• No sales tax on crypto transactions in Indiana, but use tax may apply for purchases.
Iowa
CG: Varies (4.40% - 6.00%)Income: Varies (4.40% - 6.00%)
Iowa
CG: Varies (4.40% - 6.00%)Income: Varies (4.40% - 6.00%)
Summary
Iowa treats cryptocurrency as property for tax purposes, similar to federal guidelines. Capital gains and income from crypto are subject to state income tax. Tax rates are progressive and apply to adjusted gross income including crypto transactions.
Capital Gains Tax
- Crypto capital gains are classified as short-term or long-term based on federal rules in Iowa.
- State taxes capital gains at ordinary income tax rates, with no preferential rate for long-term gains.
- No specific exemptions or thresholds for crypto capital gains in Iowa.
- Gains are included in Iowa taxable income after federal adjustments.
- State taxes capital gains at ordinary income tax rates, with no preferential rate for long-term gains.
- No specific exemptions or thresholds for crypto capital gains in Iowa.
- Gains are included in Iowa taxable income after federal adjustments.
Income Tax
- Mining income is taxed as ordinary income at the time of receipt in Iowa.
- Staking rewards are treated as ordinary income when earned or received.
- Iowa follows federal classification for crypto income, taxing it under state income tax brackets.
- Deductions for mining expenses may apply if properly documented.
- Staking rewards are treated as ordinary income when earned or received.
- Iowa follows federal classification for crypto income, taxing it under state income tax brackets.
- Deductions for mining expenses may apply if properly documented.
Reporting Requirements
- Report crypto capital gains and income on Iowa state tax return if you have Iowa taxable income.
- Use Form IA 1040 for individual income tax reporting.
- Filing deadline is April 30, or extended to October 31 if federal extension is filed.
- Use Form IA 1040 for individual income tax reporting.
- Filing deadline is April 30, or extended to October 31 if federal extension is filed.
Special Notes
- Iowa is phasing in a flat income tax rate of 3.90% by 2026, affecting future crypto taxation.
- No state sales tax on cryptocurrency purchases, but may apply to certain NFT transactions.
- Consult a tax professional for complex crypto activities like DeFi or airdrops.
- No state sales tax on cryptocurrency purchases, but may apply to certain NFT transactions.
- Consult a tax professional for complex crypto activities like DeFi or airdrops.
Kansas
CG: 3.1-5.7%Income: 3.1-5.7%
Kansas
CG: 3.1-5.7%Income: 3.1-5.7%
Summary
Kansas taxes cryptocurrency as property, following federal guidelines. State income tax applies to crypto gains and income. Rates range from 3.1% to 5.7% based on income brackets.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Kansas.
- Kansas taxes capital gains at state income tax rates, which are progressive.
- No specific exemptions or thresholds for crypto gains in Kansas.
- Gains are taxable if realized, similar to federal rules.
- Kansas taxes capital gains at state income tax rates, which are progressive.
- No specific exemptions or thresholds for crypto gains in Kansas.
- Gains are taxable if realized, similar to federal rules.
Income Tax
- Mining income is taxed as ordinary income in Kansas.
- Staking rewards are treated as ordinary income upon receipt in Kansas.
- Kansas follows federal classification for crypto income.
- Income is subject to state tax brackets after federal deductions.
- Staking rewards are treated as ordinary income upon receipt in Kansas.
- Kansas follows federal classification for crypto income.
- Income is subject to state tax brackets after federal deductions.
Reporting Requirements
- Report crypto income and gains on Kansas state tax return if filing is required.
- Use Form K-40 for individual income tax.
- Filing deadline is April 15, or the next business day.
- Use Form K-40 for individual income tax.
- Filing deadline is April 15, or the next business day.
Special Notes
- Kansas conforms to IRS treatment of virtual currency as property.
- No sales tax on crypto transactions in Kansas.
- Recent changes align with federal updates on digital assets.
- No sales tax on crypto transactions in Kansas.
- Recent changes align with federal updates on digital assets.
Kentucky
CG: 4.5%Income: 4.5%
Kentucky
CG: 4.5%Income: 4.5%
Summary
Kentucky taxes cryptocurrency as property, following federal guidelines. Capital gains and income from crypto are subject to state income tax. The state has a flat income tax rate of 4.5%.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Kentucky.
• State taxes net capital gains at the flat 4.5% income tax rate.
• No specific exemptions or thresholds for crypto gains beyond general income deductions.
• Long-term and short-term gains are both taxed at 4.5%, with no preferential rate.
• State taxes net capital gains at the flat 4.5% income tax rate.
• No specific exemptions or thresholds for crypto gains beyond general income deductions.
• Long-term and short-term gains are both taxed at 4.5%, with no preferential rate.
Income Tax
• Mining income is taxed as ordinary income at 4.5% upon receipt.
• Staking rewards are treated as income and taxed at 4.5% when earned.
• Kentucky follows federal rules for crypto income classification.
• Deductible expenses related to mining or staking can reduce taxable income.
• Staking rewards are treated as income and taxed at 4.5% when earned.
• Kentucky follows federal rules for crypto income classification.
• Deductible expenses related to mining or staking can reduce taxable income.
Reporting Requirements
• Report crypto income and gains on Kentucky state tax return if filing is required.
• Use Form 740 for individual income tax returns.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
• Use Form 740 for individual income tax returns.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
Special Notes
• Kentucky's income tax rate decreased to 4.5% in 2024 from 5% in 2023.
• Potential future rate reductions if revenue triggers are met.
• No state sales tax on crypto-to-crypto trades, but may apply to purchases with crypto.
• Consult a tax professional for complex crypto transactions.
• Potential future rate reductions if revenue triggers are met.
• No state sales tax on crypto-to-crypto trades, but may apply to purchases with crypto.
• Consult a tax professional for complex crypto transactions.
Louisiana
CG: 1.85% - 4.25%Income: 1.85% - 4.25%
Louisiana
CG: 1.85% - 4.25%Income: 1.85% - 4.25%
Summary
Louisiana taxes cryptocurrency as property, following federal guidelines. Capital gains and income from crypto are subject to state income tax. Rates are progressive and relatively low compared to other states.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Louisiana.
- State taxes capital gains at progressive income tax rates, without a separate capital gains tax.
- No general exemptions for crypto gains, but deductions may apply for gains from Louisiana-based assets.
- Thresholds follow income brackets: 1.85% up to $12,500, 3.5% up to $50,000, 4.25% above $50,000 for singles.
- Long-term and short-term gains are both taxed at these rates.
- State taxes capital gains at progressive income tax rates, without a separate capital gains tax.
- No general exemptions for crypto gains, but deductions may apply for gains from Louisiana-based assets.
- Thresholds follow income brackets: 1.85% up to $12,500, 3.5% up to $50,000, 4.25% above $50,000 for singles.
- Long-term and short-term gains are both taxed at these rates.
Income Tax
- Mining income is taxed as ordinary income upon receipt in Louisiana.
- Staking rewards are treated as ordinary income when earned.
- State follows federal rules, taxing crypto income at progressive rates.
- No specific exemptions for crypto income; deductions for business expenses may apply.
- Income from airdrops or forks is also taxable as ordinary income.
- Staking rewards are treated as ordinary income when earned.
- State follows federal rules, taxing crypto income at progressive rates.
- No specific exemptions for crypto income; deductions for business expenses may apply.
- Income from airdrops or forks is also taxable as ordinary income.
Reporting Requirements
- Report all crypto income and gains on state tax return.
- Use Form IT-540 for individual income tax filing.
- Attach federal Schedule D for capital gains details.
- Filing deadline is May 15 for calendar year taxpayers.
- Electronic filing is encouraged for accuracy.
- Use Form IT-540 for individual income tax filing.
- Attach federal Schedule D for capital gains details.
- Filing deadline is May 15 for calendar year taxpayers.
- Electronic filing is encouraged for accuracy.
Special Notes
- Louisiana has no state-level sales tax on crypto purchases.
- Recent tax reforms simplified brackets but didn't change crypto treatment.
- Consult a tax professional for complex transactions like NFTs.
- No unique crypto regulations; aligns closely with IRS rules.
- Recent tax reforms simplified brackets but didn't change crypto treatment.
- Consult a tax professional for complex transactions like NFTs.
- No unique crypto regulations; aligns closely with IRS rules.
Maine
CG: 5.8% - 7.15%Income: 5.8% - 7.15%
Maine
CG: 5.8% - 7.15%Income: 5.8% - 7.15%
Summary
Maine taxes cryptocurrency as property, following federal guidelines. Capital gains and income from crypto are subject to state income tax. Rates range from 5.8% to 7.15% based on income brackets.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Maine.
- State taxes capital gains at progressive income tax rates.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains calculated as difference between sale price and adjusted basis.
- State taxes capital gains at progressive income tax rates.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains calculated as difference between sale price and adjusted basis.
Income Tax
- Mining income is taxed as ordinary income at state rates.
- Staking rewards are treated as ordinary income upon receipt.
- Maine follows federal rules for crypto income classification.
- Income must be reported in the tax year received.
- Staking rewards are treated as ordinary income upon receipt.
- Maine follows federal rules for crypto income classification.
- Income must be reported in the tax year received.
Reporting Requirements
- Report all crypto income and gains on state tax return if filing federal.
- Use Maine Form 1040ME for individual income tax.
- Filing deadline is April 15, or the next business day if it falls on a weekend.
- Use Maine Form 1040ME for individual income tax.
- Filing deadline is April 15, or the next business day if it falls on a weekend.
Special Notes
- Maine does not impose sales tax on cryptocurrency transactions.
- Recent federal changes may impact state taxation; consult a tax professional.
- No state-specific crypto tax laws; aligns closely with IRS guidelines.
- Recent federal changes may impact state taxation; consult a tax professional.
- No state-specific crypto tax laws; aligns closely with IRS guidelines.
Maryland
CG: Varies (2% - 5.75% state + 1.75% - 3.2% local)Income: Varies (2% - 5.75% state + 1.75% - 3.2% local)
Maryland
CG: Varies (2% - 5.75% state + 1.75% - 3.2% local)Income: Varies (2% - 5.75% state + 1.75% - 3.2% local)
Summary
Maryland taxes cryptocurrency similarly to federal guidelines, treating it as property. State income tax applies to crypto gains and income. Local county taxes also add to the burden.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Maryland.
• State taxes long-term and short-term gains at regular income tax rates.
• No specific exemptions for crypto; general $2,500 deduction for capital losses applies.
• Thresholds follow federal rules, with state adjustments possible.
• State taxes long-term and short-term gains at regular income tax rates.
• No specific exemptions for crypto; general $2,500 deduction for capital losses applies.
• Thresholds follow federal rules, with state adjustments possible.
Income Tax
• Mining income is taxed as ordinary income at receipt in Maryland.
• Staking rewards are taxed as ordinary income when received.
• State follows federal classification for crypto income.
• Deduct mining expenses if business-related.
• Staking rewards are taxed as ordinary income when received.
• State follows federal classification for crypto income.
• Deduct mining expenses if business-related.
Reporting Requirements
• Report crypto gains and income on state tax return.
• Use Maryland Form 502 for residents.
• File by April 15, or extended deadline matching federal.
• Use Maryland Form 502 for residents.
• File by April 15, or extended deadline matching federal.
Special Notes
• Maryland has no sales tax on crypto transactions.
• Recent IRS guidance on airdrops and forks applies at state level.
• Consult a tax professional for county-specific local taxes.
• Recent IRS guidance on airdrops and forks applies at state level.
• Consult a tax professional for county-specific local taxes.
Massachusetts
CG: 5-12%Income: 5%
Massachusetts
CG: 5-12%Income: 5%
Summary
Massachusetts treats cryptocurrency as property, similar to federal rules. Residents must pay state taxes on crypto gains and income. Taxation aligns with federal guidelines but applies state rates.
Capital Gains Tax
- Crypto capital gains are classified as short-term or long-term based on holding period.
- Short-term gains (held less than 1 year) are taxed at 12% in Massachusetts.
- Long-term gains (held 1 year or more) are taxed at 5%.
- No specific exemptions for crypto; general capital gains thresholds apply.
- Gains are calculated as sale price minus cost basis, adjusted for fees.
- Short-term gains (held less than 1 year) are taxed at 12% in Massachusetts.
- Long-term gains (held 1 year or more) are taxed at 5%.
- No specific exemptions for crypto; general capital gains thresholds apply.
- Gains are calculated as sale price minus cost basis, adjusted for fees.
Income Tax
- Mining income is taxed as ordinary income at the state level upon receipt.
- Staking rewards are treated as ordinary income when earned.
- Massachusetts applies a flat 5% income tax rate to crypto-related income.
- High earners may face an additional 4% surtax on income over $1 million.
- Staking rewards are treated as ordinary income when earned.
- Massachusetts applies a flat 5% income tax rate to crypto-related income.
- High earners may face an additional 4% surtax on income over $1 million.
Reporting Requirements
- Report crypto gains and income on Massachusetts Form 1 or Form 1-NR/PY.
- Include federal Schedule D for capital gains and Schedule 1 for income.
- State tax returns are due by April 15, or the next business day.
- Include federal Schedule D for capital gains and Schedule 1 for income.
- State tax returns are due by April 15, or the next business day.
Special Notes
- Massachusetts introduced a 4% surtax on incomes over $1 million starting in 2023.
- Crypto transactions may trigger sales tax if considered barter.
- Keep detailed records of all crypto activities for audits.
- Consult a tax professional for complex DeFi or NFT transactions.
- Crypto transactions may trigger sales tax if considered barter.
- Keep detailed records of all crypto activities for audits.
- Consult a tax professional for complex DeFi or NFT transactions.
Michigan
CG: 4.25%Income: 4.25%
Michigan
CG: 4.25%Income: 4.25%
Summary
Michigan taxes cryptocurrency under its state income tax framework. Crypto is treated as property, similar to federal rules. Gains and income from crypto are subject to Michigan's flat tax rate.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Michigan.
- Michigan taxes capital gains at the flat state income tax rate of 4.25%.
- No separate capital gains tax; follows federal classification for short-term and long-term gains.
- Exemptions include federal deductions that flow through to state returns.
- Thresholds match federal: report if gains exceed $600 in certain transactions.
- Michigan taxes capital gains at the flat state income tax rate of 4.25%.
- No separate capital gains tax; follows federal classification for short-term and long-term gains.
- Exemptions include federal deductions that flow through to state returns.
- Thresholds match federal: report if gains exceed $600 in certain transactions.
Income Tax
- Mining income is taxed as ordinary income at 4.25% in Michigan.
- Staking rewards are considered ordinary income and taxed at the state rate.
- Michigan applies its flat 4.25% income tax to all crypto-related income.
- Deduct federal expenses before applying state tax.
- Report income if it meets federal thresholds.
- Staking rewards are considered ordinary income and taxed at the state rate.
- Michigan applies its flat 4.25% income tax to all crypto-related income.
- Deduct federal expenses before applying state tax.
- Report income if it meets federal thresholds.
Reporting Requirements
- Report crypto gains and income on Michigan state tax return if filing federally.
- Use Form MI-1040 for individual income tax.
- Include Schedule 1 for additional income or adjustments.
- Key deadline is April 15, or October 15 with extension.
- Use Form MI-1040 for individual income tax.
- Include Schedule 1 for additional income or adjustments.
- Key deadline is April 15, or October 15 with extension.
Special Notes
- Michigan follows IRS guidance on crypto as virtual currency.
- No state sales tax on crypto-to-crypto trades, but use tax may apply to purchases.
- Recent changes: Aligns with federal crypto reporting rules from Infrastructure Act.
- Consult a tax professional for complex transactions.
- No state sales tax on crypto-to-crypto trades, but use tax may apply to purchases.
- Recent changes: Aligns with federal crypto reporting rules from Infrastructure Act.
- Consult a tax professional for complex transactions.
Minnesota
CG: 5.35% - 9.85%Income: 5.35% - 9.85%
Minnesota
CG: 5.35% - 9.85%Income: 5.35% - 9.85%
Summary
Minnesota treats cryptocurrency as property for tax purposes, aligning with federal guidelines. Crypto transactions may trigger state income tax on gains and income. Taxpayers must report crypto activities on their state returns.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Minnesota.
• State taxes capital gains at progressive income tax rates, ranging from 5.35% to 9.85% based on taxable income.
• No specific exemptions for crypto gains; standard deductions and credits apply.
• Long-term and short-term gains are both taxed as ordinary income, without preferential rates.
• State taxes capital gains at progressive income tax rates, ranging from 5.35% to 9.85% based on taxable income.
• No specific exemptions for crypto gains; standard deductions and credits apply.
• Long-term and short-term gains are both taxed as ordinary income, without preferential rates.
Income Tax
• Mining income is taxed as ordinary income at the time of receipt in Minnesota.
• Staking rewards are considered ordinary income when earned, following federal treatment.
• State income tax applies progressively to all crypto-related income.
• Deductible expenses related to mining or staking can reduce taxable income.
• Staking rewards are considered ordinary income when earned, following federal treatment.
• State income tax applies progressively to all crypto-related income.
• Deductible expenses related to mining or staking can reduce taxable income.
Reporting Requirements
• Report all crypto gains, losses, and income on state tax returns.
• Use Minnesota Form M1 for individual income tax returns, including Schedule M1CG for capital gains if needed.
• State tax filing deadline is April 15, or the next business day if it falls on a weekend.
• Use Minnesota Form M1 for individual income tax returns, including Schedule M1CG for capital gains if needed.
• State tax filing deadline is April 15, or the next business day if it falls on a weekend.
Special Notes
• Minnesota conforms to federal IRC for most crypto tax treatments, but check for any state-specific adjustments.
• Recent IRS guidance on crypto applies; no major state changes as of 2023.
• Consult a tax professional for complex transactions like airdrops or forks.
• Recent IRS guidance on crypto applies; no major state changes as of 2023.
• Consult a tax professional for complex transactions like airdrops or forks.
Mississippi
CG: 0-5%Income: 0-5%
Mississippi
CG: 0-5%Income: 0-5%
Summary
In Mississippi, cryptocurrency is treated as property for tax purposes, following federal IRS guidelines. Capital gains and income from crypto activities are subject to state income tax. Tax rates are progressive, ranging from 0% to 5%.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Mississippi.
- Gains are taxed at state income tax rates of 0% on the first $1,000, 3% on $1,001-$5,000, 4% on $5,001-$10,000, and 5% above $10,000.
- No specific exemptions for crypto gains; standard deductions apply.
- Holding period does not affect classification; all gains taxed as ordinary income.
- Losses can offset gains and up to $3,000 of ordinary income.
- Gains are taxed at state income tax rates of 0% on the first $1,000, 3% on $1,001-$5,000, 4% on $5,001-$10,000, and 5% above $10,000.
- No specific exemptions for crypto gains; standard deductions apply.
- Holding period does not affect classification; all gains taxed as ordinary income.
- Losses can offset gains and up to $3,000 of ordinary income.
Income Tax
- Mining income is taxed as ordinary income upon receipt in Mississippi.
- Staking rewards are treated as ordinary income when earned.
- Income from crypto is subject to progressive state rates: 0% to 5% based on total taxable income.
- Self-employment taxes may apply if mining or staking is a business.
- Airdrops and forks are taxable as income at fair market value.
- Staking rewards are treated as ordinary income when earned.
- Income from crypto is subject to progressive state rates: 0% to 5% based on total taxable income.
- Self-employment taxes may apply if mining or staking is a business.
- Airdrops and forks are taxable as income at fair market value.
Reporting Requirements
- Report all crypto income and gains on Mississippi state tax return if you have state taxable income.
- Use Form 80-105 for residents or Form 80-205 for non-residents.
- File by April 15, or October 15 with extension.
- Maintain records of transactions, including dates, values, and costs.
- Report if federal adjusted gross income requires state filing.
- Use Form 80-105 for residents or Form 80-205 for non-residents.
- File by April 15, or October 15 with extension.
- Maintain records of transactions, including dates, values, and costs.
- Report if federal adjusted gross income requires state filing.
Special Notes
- Mississippi conforms to federal treatment of virtual currency as property.
- No state sales tax on crypto purchases, but use tax may apply for certain transactions.
- Recent federal clarifications on crypto may impact state reporting; check for updates.
- Consult a tax professional for complex situations like DeFi or NFTs.
- No specific crypto amnesty programs in Mississippi.
- No state sales tax on crypto purchases, but use tax may apply for certain transactions.
- Recent federal clarifications on crypto may impact state reporting; check for updates.
- Consult a tax professional for complex situations like DeFi or NFTs.
- No specific crypto amnesty programs in Mississippi.
Missouri
CG: 1.5-5.3%Income: 1.5-5.3%
Missouri
CG: 1.5-5.3%Income: 1.5-5.3%
Summary
Missouri treats cryptocurrency as property, similar to federal guidelines. Crypto transactions are subject to state income tax. There is no specific state sales tax on crypto purchases.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in Missouri.
• State taxes long-term and short-term gains at the same progressive rates as other income.
• No specific exemptions for crypto gains, but standard deductions apply.
• Gains are taxable if you are a Missouri resident or have Missouri-sourced income.
• State taxes long-term and short-term gains at the same progressive rates as other income.
• No specific exemptions for crypto gains, but standard deductions apply.
• Gains are taxable if you are a Missouri resident or have Missouri-sourced income.
Income Tax
• Mining income is taxed as ordinary income when received in Missouri.
• Staking rewards are treated as ordinary income upon receipt.
• Missouri follows federal rules for crypto income classification.
• Income must be reported in the year it is earned or received.
• Staking rewards are treated as ordinary income upon receipt.
• Missouri follows federal rules for crypto income classification.
• Income must be reported in the year it is earned or received.
Reporting Requirements
• Report all crypto income and gains on state tax returns if filing federally.
• Use Form MO-1040 for individual income tax.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
• Use Form MO-1040 for individual income tax.
• Filing deadline is April 15, or the next business day if it falls on a weekend.
Special Notes
• Missouri reduced its top income tax rate to 5.3% in 2023.
• No unique crypto regulations; follows IRS guidelines.
• Consult a tax professional for complex transactions like airdrops or forks.
• No unique crypto regulations; follows IRS guidelines.
• Consult a tax professional for complex transactions like airdrops or forks.
Montana
CG: 1%-6.9%Income: 1%-6.9%
Montana
CG: 1%-6.9%Income: 1%-6.9%
Summary
Montana taxes cryptocurrency as property, following federal guidelines. Capital gains and income from crypto are subject to state income tax. Rates are progressive, ranging from 1% to 6.9%.
Capital Gains Tax
- Crypto capital gains are classified as ordinary income in Montana.
- State-specific rules tax them at progressive income tax rates, with no separate capital gains tax.
- Exemptions include standard state deductions and credits; no crypto-specific thresholds.
- Key rule: Long-term and short-term gains are both taxed as ordinary income.
- State-specific rules tax them at progressive income tax rates, with no separate capital gains tax.
- Exemptions include standard state deductions and credits; no crypto-specific thresholds.
- Key rule: Long-term and short-term gains are both taxed as ordinary income.
Income Tax
- Mining income is taxed as ordinary income upon receipt in Montana.
- Staking rewards are treated as ordinary income when earned.
- State-specific rules follow federal classification for crypto income.
- Key rule: Income from airdrops or forks is also taxable as ordinary income.
- Staking rewards are treated as ordinary income when earned.
- State-specific rules follow federal classification for crypto income.
- Key rule: Income from airdrops or forks is also taxable as ordinary income.
Reporting Requirements
- Report all crypto income and gains on Montana state tax return.
- Use Form 2 for individual income tax filing.
- Key deadline: April 15, or October 15 if extended.
- Use Form 2 for individual income tax filing.
- Key deadline: April 15, or October 15 if extended.
Special Notes
- Montana's House Bill 693 (2023) exempts digital assets from property tax when used as payment.
- No state sales tax on crypto transactions.
- Recent changes emphasize pro-crypto stance, but income tax applies fully.
- No state sales tax on crypto transactions.
- Recent changes emphasize pro-crypto stance, but income tax applies fully.
Nebraska
CG: 2.46% - 6.64%Income: 2.46% - 6.64%
Nebraska
CG: 2.46% - 6.64%Income: 2.46% - 6.64%
Summary
Nebraska taxes cryptocurrency as property, following federal IRS guidelines. Capital gains and income from crypto are subject to state income tax. There are no specific state taxes unique to crypto in Nebraska.
Capital Gains Tax
- Crypto capital gains are classified as property sales in Nebraska.
- Gains are taxed at ordinary state income tax rates, not as separate capital gains tax.
- No state-specific exemptions or thresholds for crypto gains beyond general income deductions.
- Long-term and short-term gains both taxed as ordinary income based on holding period and federal classification.
- Gains are taxed at ordinary state income tax rates, not as separate capital gains tax.
- No state-specific exemptions or thresholds for crypto gains beyond general income deductions.
- Long-term and short-term gains both taxed as ordinary income based on holding period and federal classification.
Income Tax
- Mining income is taxed as ordinary income in Nebraska upon receipt.
- Staking rewards are treated as ordinary income when earned, following federal rules.
- State income tax applies to all crypto-related income included in federal AGI.
- Deductions for mining expenses may apply if itemized on state return.
- Staking rewards are treated as ordinary income when earned, following federal rules.
- State income tax applies to all crypto-related income included in federal AGI.
- Deductions for mining expenses may apply if itemized on state return.
Reporting Requirements
- Report crypto gains and income on Nebraska state tax return if filing federal return.
- Use Form 1040N for individual income tax reporting.
- Filing deadline is April 15, or extended to October 15 if federal extension granted.
- Use Form 1040N for individual income tax reporting.
- Filing deadline is April 15, or extended to October 15 if federal extension granted.
Special Notes
- Nebraska conforms to federal treatment of virtual currency as property.
- No sales or use tax on crypto transactions in Nebraska.
- Recent legislation may affect broader tax rates, but no crypto-specific changes as of 2023.
- Consult a tax professional for personalized advice.
- No sales or use tax on crypto transactions in Nebraska.
- Recent legislation may affect broader tax rates, but no crypto-specific changes as of 2023.
- Consult a tax professional for personalized advice.
Nevada
CG: 0%Income: 0%
Nevada
CG: 0%Income: 0%
Summary
Nevada does not impose a state income tax. Cryptocurrency transactions are exempt from state-level taxes. Federal taxes apply to all crypto activities.
Capital Gains Tax
• Crypto capital gains are classified as property under federal rules, with no state tax in Nevada.
• Nevada has no state capital gains tax.
• No exemptions or thresholds apply at the state level.
• Gains are only subject to federal taxation.
• Nevada has no state capital gains tax.
• No exemptions or thresholds apply at the state level.
• Gains are only subject to federal taxation.
Income Tax
• Mining income is not taxed at the state level in Nevada.
• Staking rewards are treated as ordinary income federally but exempt from state tax.
• Nevada imposes no state income tax on any crypto earnings.
• All income is subject only to federal rules.
• Staking rewards are treated as ordinary income federally but exempt from state tax.
• Nevada imposes no state income tax on any crypto earnings.
• All income is subject only to federal rules.
Reporting Requirements
• No state reporting required for crypto income or gains.
• No specific state forms for cryptocurrency taxation.
• Follow federal IRS deadlines, such as April 15 for tax returns.
• No specific state forms for cryptocurrency taxation.
• Follow federal IRS deadlines, such as April 15 for tax returns.
Special Notes
• Nevada is business-friendly for crypto due to absence of state income tax.
• Sales tax may apply to crypto used for purchases in the state.
• No recent state-specific changes; monitor federal IRS guidance.
• Sales tax may apply to crypto used for purchases in the state.
• No recent state-specific changes; monitor federal IRS guidance.
New Hampshire
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
Summary
New Hampshire does not have a state income tax on individuals. Cryptocurrency transactions are subject only to federal taxes at the state level. Businesses may face Business Profits Tax on crypto-related activities.
Capital Gains Tax
- Crypto capital gains are classified as capital assets, following federal rules.
- New Hampshire imposes no state capital gains tax on individuals.
- All capital gains from crypto are exempt from state taxation.
- No thresholds or exemptions needed since tax rate is zero.
- New Hampshire imposes no state capital gains tax on individuals.
- All capital gains from crypto are exempt from state taxation.
- No thresholds or exemptions needed since tax rate is zero.
Income Tax
- Mining income is not taxed at the state level for individuals.
- Staking rewards are treated as ordinary income federally but exempt from state income tax.
- New Hampshire has no broad-based state income tax.
- Businesses may owe Business Profits Tax on crypto income if it qualifies as business profits.
- Staking rewards are treated as ordinary income federally but exempt from state income tax.
- New Hampshire has no broad-based state income tax.
- Businesses may owe Business Profits Tax on crypto income if it qualifies as business profits.
Reporting Requirements
- Individuals do not need to report crypto income to New Hampshire due to no state income tax.
- Businesses must file Form BET and BPT if applicable for crypto activities.
- Key deadline for business tax returns is April 15 or the 15th day of the 4th month after fiscal year-end.
- Businesses must file Form BET and BPT if applicable for crypto activities.
- Key deadline for business tax returns is April 15 or the 15th day of the 4th month after fiscal year-end.
Special Notes
- New Hampshire is considered crypto-friendly with no sales tax on crypto purchases.
- Interest and Dividends Tax (5% in 2023) does not apply to crypto gains or rewards.
- Recent changes include phased repeal of Interest and Dividends Tax starting 2024.
- Consult a tax professional for business-specific crypto taxation.
- Interest and Dividends Tax (5% in 2023) does not apply to crypto gains or rewards.
- Recent changes include phased repeal of Interest and Dividends Tax starting 2024.
- Consult a tax professional for business-specific crypto taxation.
New Jersey
CG: 1.4% - 10.75%Income: 1.4% - 10.75%
New Jersey
CG: 1.4% - 10.75%Income: 1.4% - 10.75%
Summary
New Jersey taxes cryptocurrency similarly to federal rules, treating crypto as property. Capital gains and income from crypto are subject to state income tax. Residents must report crypto activities on state returns if they file federally.
Capital Gains Tax
• Crypto capital gains are classified as ordinary income in New Jersey.
• State taxes capital gains at progressive income tax rates, no separate long-term rate.
• No exemptions or thresholds specific to crypto; general income exemptions apply.
• Gains calculated as federal (sale price minus cost basis), then taxed at state rate.
• State taxes capital gains at progressive income tax rates, no separate long-term rate.
• No exemptions or thresholds specific to crypto; general income exemptions apply.
• Gains calculated as federal (sale price minus cost basis), then taxed at state rate.
Income Tax
• Mining income is taxed as ordinary income in New Jersey, reported when received.
• Staking rewards are taxed as ordinary income upon receipt, per federal guidance.
• State follows federal treatment of crypto income as miscellaneous or business income.
• Deductible expenses like equipment or electricity reduce taxable income.
• Staking rewards are taxed as ordinary income upon receipt, per federal guidance.
• State follows federal treatment of crypto income as miscellaneous or business income.
• Deductible expenses like equipment or electricity reduce taxable income.
Reporting Requirements
• Report all crypto income, gains, and losses on New Jersey state tax return.
• Use Form NJ-1040; attach federal Schedule D or 8949 if applicable.
• Filing deadline is April 15, or October 15 with extension.
• Use Form NJ-1040; attach federal Schedule D or 8949 if applicable.
• Filing deadline is April 15, or October 15 with extension.
Special Notes
• New Jersey has no specific crypto tax laws; aligns with IRS rules.
• High-income earners face top rate of 10.75% on crypto profits.
• Recent federal changes, like infrastructure bill reporting, may impact state filings.
• Consult a tax professional for complex transactions like DeFi or NFTs.
• High-income earners face top rate of 10.75% on crypto profits.
• Recent federal changes, like infrastructure bill reporting, may impact state filings.
• Consult a tax professional for complex transactions like DeFi or NFTs.
Reporting Requirements
- Report all crypto transactions, including sales, trades, and income.
- Report on annual tax return if transactions exceed certain thresholds.
- Use Form 8949 for capital gains/losses and Schedule D.
- Form 1099 may be issued by exchanges; self-report if not.
- Key deadline: April 15 for most filers; extensions available.
- Report on annual tax return if transactions exceed certain thresholds.
- Use Form 8949 for capital gains/losses and Schedule D.
- Form 1099 may be issued by exchanges; self-report if not.
- Key deadline: April 15 for most filers; extensions available.
Special Notes
- IRS treats crypto as property since 2014 guidance (Notice 2014-21).
- Recent infrastructure bill requires brokers to report crypto transactions starting 2023.
- NFTs and DeFi activities follow similar rules; yield farming taxed as income.
- Wash sale rule does not apply to crypto, allowing tax-loss harvesting.
- State taxes may vary; some states like Wyoming have crypto-friendly laws.
- Recent infrastructure bill requires brokers to report crypto transactions starting 2023.
- NFTs and DeFi activities follow similar rules; yield farming taxed as income.
- Wash sale rule does not apply to crypto, allowing tax-loss harvesting.
- State taxes may vary; some states like Wyoming have crypto-friendly laws.
Recent News
Latest updates about crypto taxes in United States
IRS Releases New Crypto Tax Guidance for 2024
The IRS updated its FAQ on cryptocurrency taxation, clarifying reporting for DeFi and NFTs. This aims to help taxpayers comply amid rising crypto adoption.
January 15, 2024
Biden Administration Proposes Crypto Tax Reporting Rules
New proposals require digital asset brokers to report user info to combat tax evasion. This could impact exchanges like Coinbase starting in 2025.
December 20, 2023
Court Rules on Crypto Staking Taxation
A federal court decided that staking rewards are taxable upon receipt, not sale. This sets a precedent for similar income sources.
November 5, 2023
IRS Targets High-Earners with Crypto Audits
The IRS announced increased audits for crypto holders with over $10 million in assets. Focus is on unreported gains from 2020-2022.
October 10, 2023
New Bill Aims to Clarify Crypto Tax Treatment
Bipartisan bill introduced to treat certain crypto transactions as non-taxable. It seeks to reduce burdens on everyday users.
September 18, 2023
Coinbase Wins Partial Victory in IRS Summons Case
Court limits IRS data request from Coinbase, protecting user privacy. This affects how exchanges handle tax reporting.
August 22, 2023
Treasury Department Updates Crypto Reporting Thresholds
Threshold for reporting cash-like crypto transactions raised to $10,000. Aims to align with anti-money laundering rules.
July 14, 2023
IRS Warns of Crypto Tax Scams
The IRS issued alerts about scams promising tax refunds for crypto losses. Taxpayers advised to verify with official sources.
June 30, 2023
Senate Debates Crypto Provisions in Tax Bill
Debate over including crypto in broader tax reform bill. Proposals include taxing unrealized gains for billionaires.
May 12, 2023
FTX Collapse Prompts Tax Guidance for Victims
IRS provides relief for FTX users claiming losses on taxes. Allows deductions for stolen or lost crypto assets.
April 8, 2023
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.