Updated March 29, 2026
Capital Gains: 0%-37% (short-term 10%-37%; long-term 0%-20%)Income Tax: 10%-37% (ordinary income rates)Tax Summary
The IRS treats cryptocurrency as property for tax purposes. Capital gains from sales, trades, or disposals are taxed at short-term rates (10%-37%) if held one year or less, or long-term rates (0%-20%) if held longer. Income from mining, staking, or airdrops is ordinary income taxed at 10%-37%.
Quick facts for United States
Capital Gains Tax
0%-37% (short-term 10%-37%; long-term 0%-20%)Income Tax Rate
10%-37% (ordinary income rates)Capital Gains Tax
0%-37% (short-term 10%-37%; long-term 0%-20%)• Crypto is classified as property; capital gains/losses apply to sales, exchanges, trades, or uses.
• Short-term gains (held ≤1 year): taxed at ordinary income rates (10%-37%).
• Long-term gains (held >1 year): taxed at 0%, 15%, or 20% based on income.
• Taxable events include trading crypto for crypto or fiat; no like-kind exchanges allowed.
• Losses offset gains; up to $3,000 net loss deductible against ordinary income annually.
• Report on Form 8949 and Schedule D; track cost basis and fair market value.
• Short-term gains (held ≤1 year): taxed at ordinary income rates (10%-37%).
• Long-term gains (held >1 year): taxed at 0%, 15%, or 20% based on income.
• Taxable events include trading crypto for crypto or fiat; no like-kind exchanges allowed.
• Losses offset gains; up to $3,000 net loss deductible against ordinary income annually.
• Report on Form 8949 and Schedule D; track cost basis and fair market value.
Income Tax
10%-37% (ordinary income rates)• Mining rewards: ordinary income at fair market value (FMV) when received.
• Staking rewards: taxable as ordinary income per Revenue Ruling 2023-14 at FMV.
• Airdrops, hard forks: income at FMV upon receipt or control.
• Other income (payments, interest): ordinary income rates.
• Basis for future sales equals FMV at receipt; report on Schedule 1 (Form 1040).
• Staking rewards: taxable as ordinary income per Revenue Ruling 2023-14 at FMV.
• Airdrops, hard forks: income at FMV upon receipt or control.
• Other income (payments, interest): ordinary income rates.
• Basis for future sales equals FMV at receipt; report on Schedule 1 (Form 1040).
State-by-State Tax Guides
Browse dedicated state guides without loading every state’s full tax content into the initial page.
Alabama
CG: 2%-5%Income: 2%-5%
Alaska
CG: 0%Income: 0%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: 0% - 3.9%Income: 0% - 3.9%
California
CG: 1%-13.3% (ordinary income rates)Income: 1%-13.3% (ordinary income rates)
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 2%-6.99% (taxed as ordinary income)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% (taxed as ordinary income)Income: 5.19% (flat rate)
Hawaii
CG: 7.25% (elective on net capital gains); short-term: 1.4%-11%Income: 1.4%-11%
Idaho
CG: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafterIncome: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafter
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 2.95% state + 0.5%-3% county (varies by location)<argumentIncome: 2.95% state + 0.5%-3% county (varies by location)<argument
Iowa
CG: 3.8% (flat rate, taxed as ordinary income)Income: 3.8% (flat rate)
Kansas
CG: 5.2% - 5.58%Income: 5.2% - 5.58%
Kentucky
CG: 3.5% (flat rate)Income: 3.5% (flat rate)
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-7.15%Income: 5.8%-7.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.3% local + 2% surtax on net gains (FAGI > $350k)<grok:render type="render_inlIncome: 2%-6.5% state + 2.25%-3.3% local
Massachusetts
CG: 5% (long-term), 8.5% (short-term)Income: 5% flat + 4% surtax over $1,083,150
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35%-9.85%; +1% on net investment income over $1MIncome: 5.35%-9.85%
Mississippi
CG: 4.4%Income: 4.4%
Missouri
CG: 0%Income: 0-4.7%
Montana
CG: Short-term: 4.7%-5.65%; Long-term: 3%-4.1%Income: 4.7%-5.65%
Nebraska
CG: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)Income: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4%-10.75% (taxed as ordinary income)Income: 1.4%-10.75%
New Mexico
CG: 1.5% - 5.9% (with deduction)Income: 1.5% - 5.9%
New York
CG: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYCIncome: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYC
North Carolina
CG: 4.25% (TY 2025); 3.99% (TY 2026)Income: 4.25% (TY 2025); 3.99% (TY 2026)
North Dakota
CG: Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)Income: 1.95%-2.5%
Ohio
CG: 0%-3.125%Income: 0%-3.125%
Oklahoma
CG: 0.25% - 4.5%Income: 0.25% - 4.5%
Oregon
CG: 4.75%-9.9% (taxed as ordinary income)Income: 4.75%-9.9%
Pennsylvania
CG: 3.07%Income: 3.07%
Rhode Island
CG: 3.75%-5.99%Income: 3.75%-5.99%
South Carolina
CG: 0%-6% (44% deduction on net LTCG)Income: 0%-6%
South Dakota
CG: 0%Income: 0%
Tennessee
CG: 0%Income: 0%
Texas
CG: 0%Income: 0%
Utah
CG: 4.5% (flat, as ordinary income)Income: 4.5% (flat rate)
Vermont
CG: 3.35%-8.75% (taxed as ordinary income)Income: 3.35%-8.75%
Virginia
CG: 2%-5.75%Income: 2%-5.75%
Washington
CG: 7%Income: 0%
West Virginia
CG: 2.22%-4.82%Income: 2.22%-4.82%
Wisconsin
CG: 3.50%-7.65% (30% deduction for long-term gains)Income: 3.50%-7.65%
Wyoming
CG: 0%Income: 0%
Reporting Requirements
• Report all digital asset transactions if received as income or disposed (sale/exchange).
• Answer 'Yes/No' to digital assets question on Form 1040.
• Capital gains/losses: Form 8949, Schedule D.
• Ordinary income: Schedule 1 (Form 1040); business: Schedule C.
• Brokers issue Form 1099-DA: gross proceeds from 2025 txns (filed 2026), basis from 2026.
• Deadline: April 15 (extensions to Oct 15); keep records of FMV, basis, dates.
• Answer 'Yes/No' to digital assets question on Form 1040.
• Capital gains/losses: Form 8949, Schedule D.
• Ordinary income: Schedule 1 (Form 1040); business: Schedule C.
• Brokers issue Form 1099-DA: gross proceeds from 2025 txns (filed 2026), basis from 2026.
• Deadline: April 15 (extensions to Oct 15); keep records of FMV, basis, dates.
Special Notes
• Broker reporting phase-in: gross proceeds 2025+, cost basis 2026+; transitional penalty relief through 2027.
• Proposed regs for DeFi brokers as reporting entities in 2026.
• No general de minimis exemption; exceptions for certain stablecoin/NFT txns under thresholds.
• Net Investment Income Tax (3.8%) may apply to gains/income over thresholds.
• Revenue Procedure 2024-28 allows basis allocation for wallets as of Jan 1, 2025.
• IRS updated guidance March 17, 2026.
• Proposed regs for DeFi brokers as reporting entities in 2026.
• No general de minimis exemption; exceptions for certain stablecoin/NFT txns under thresholds.
• Net Investment Income Tax (3.8%) may apply to gains/income over thresholds.
• Revenue Procedure 2024-28 allows basis allocation for wallets as of Jan 1, 2025.
• IRS updated guidance March 17, 2026.
Recent News
Latest updates about crypto taxes in United States
What are the tax changes that affect crypto taxes in 2026?
IRS Form 1099-DA required for cost basis reporting starting 2026 tax year. Brokers must report digital asset transactions more comprehensively.
March 20, 2026
IRS Extends Crypto Tax Relief Until End of 2026
IRS extended compliance relief for crypto investors, allowing alternative reporting methods until end of 2026. Helps avoid penalties during transition.
March 19, 2026
New U.S. Crypto Tax Reporting Rules 'Do A Disservice To People'
Coinbase criticizes new crypto tax reporting rules for creating unnecessary paperwork for retail traders. Rules effective in 2026 filing season.
March 15, 2026
IRS Releases Proposed Regulations on Crypto Information Reporting
IRS issued proposed rules treating DeFi brokers as reporting entities effective 2026. Follows 2024 regulations on trading front-ends.
March 11, 2026
Understanding Your 2026 Crypto Taxes
Fidelity explains crypto tax basics, changes for 2025/2026 season, tax-loss harvesting. Covers reporting and strategies.
February 20, 2026
2 Cryptocurrency Tax Rule Changes Going Into Effect in 2026
IRS tighter rules including Form 1040 question and audits continue; new broker reporting requirements start.
February 3, 2026
2026 Crypto Tax Forecast: Hot With A High Chance Of Legislation
Congressmen propose crypto tax changes; expect legislation in 2026 on taxation issues.
January 29, 2026
Reporting Digital Assets: What US Investors Need to Know in 2026
IRS views crypto as property; outlines reporting for 2026 with new rules.
January 16, 2026
Ringing In Crypto's 'Watershed' Tax Year: A Tricky 2026 Filing Season
2026 tax filing for 2025 txns messy due to new reporting; de minimis proposals discussed but not passed.
December 30, 2025
United States Crypto Tax FAQ
Is cryptocurrency taxed in United States?
The IRS treats cryptocurrency as property for tax purposes. Capital gains from sales, trades, or disposals are taxed at short-term rates (10%-37%) if held one year or less, or long-term rates (0%-20%) if held longer. Income from mining, staking, or airdrops is ordinary income taxed at 10%-37%.
What is the capital gains tax rate on crypto in United States?
The capital gains tax rate for cryptocurrency in United States is 0%-37% (short-term 10%-37%; long-term 0%-20%). • Crypto is classified as property; capital gains/losses apply to sales, exchanges, trades, or uses.
How do I report crypto taxes in United States?
• Report all digital asset transactions if received as income or disposed (sale/exchange).
Are crypto-to-crypto trades taxable in United States?
In most cases, crypto-to-crypto trades are taxable events in United States. When you exchange one cryptocurrency for another, you may realize a capital gain or loss based on the difference between your cost basis and the fair market value at the time of the trade.
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.