Updated May 10, 2026
Capital Gains: Varies: short-term 1.4-11%, net long-term up to 7.25%Income Tax: 1.4-11%Tax Summary
Hawaii treats cryptocurrency as property, following federal IRS guidelines. Capital gains and income from crypto are subject to state income tax. Net long-term capital gains are capped at 7.25%; other gains and income taxed at 1.4%-11%.
Quick facts for Hawaii, United States
Capital Gains Tax
Varies: short-term 1.4-11%, net long-term up to 7.25%Income Tax Rate
1.4-11%Capital Gains Tax
Varies: short-term 1.4-11%, net long-term up to 7.25%• Crypto capital gains classified per federal rules: short-term (≤1 year) as ordinary income, long-term (>1 year) as net capital gain.
• State tax on net capital gains limited to 7.25% under HRS §235-51(f).
• No Hawaii-specific exemptions or thresholds; follows federal $3,000 annual loss deduction.
• Compute using Schedule D with Form N-11.
• State tax on net capital gains limited to 7.25% under HRS §235-51(f).
• No Hawaii-specific exemptions or thresholds; follows federal $3,000 annual loss deduction.
• Compute using Schedule D with Form N-11.
Income Tax
1.4-11%• Mining income taxed as ordinary income at progressive rates 1.4-11%.
• Staking rewards taxed as ordinary income at 1.4-11%.
• State conforms to federal classification of crypto income.
• Included in Hawaii adjusted gross income.
• Staking rewards taxed as ordinary income at 1.4-11%.
• State conforms to federal classification of crypto income.
• Included in Hawaii adjusted gross income.
Reporting Requirements
• Report all crypto transactions impacting HI taxable income on Form N-11 (residents) or N-15 (nonresidents/part-year).
• Use Schedule D (N-11) for capital gains and losses.
• File if HI gross income exceeds filing thresholds (e.g., ~$12,950 single for 2025).
• Deadline: April 20 (extensions to October 20 for refunds).
• Use Schedule D (N-11) for capital gains and losses.
• File if HI gross income exceeds filing thresholds (e.g., ~$12,950 single for 2025).
• Deadline: April 20 (extensions to October 20 for refunds).
Special Notes
• Recent tax reforms expanded brackets and lowered effective rates post-2024.
• Hawaii conforms to federal IRC §235-2.3 with modifications; crypto follows property rules.
• No specific state sales/use tax on crypto; monitor for updates.
• Maintain records of acquisition cost, FMV, and transactions.
• Hawaii conforms to federal IRC §235-2.3 with modifications; crypto follows property rules.
• No specific state sales/use tax on crypto; monitor for updates.
• Maintain records of acquisition cost, FMV, and transactions.
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)
Connecticut
CG: 2-6.99%Income: 2-6.99%
Delaware
CG: 2.2%-6.6%Income: 2.2%-6.6%
District of Columbia
CG: 4-10.75% (taxed as ordinary income)Income: 4-10.75%
Florida
CG: 0%Income: 0%
Georgia
CG: 5.19%Income: 5.19%
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%
Hawaii Crypto Tax FAQ
Is cryptocurrency taxed in Hawaii?
Hawaii treats cryptocurrency as property, following federal IRS guidelines. Capital gains and income from crypto are subject to state income tax. Net long-term capital gains are capped at 7.25%; other gains and income taxed at 1.4%-11%.
What is the crypto capital gains tax rate in Hawaii?
The state-level capital gains treatment in Hawaii is currently listed as Varies: short-term 1.4-11%, net long-term up to 7.25%.
How do I report crypto taxes in Hawaii?
• Report all crypto transactions impacting HI taxable income on Form N-11 (residents) or N-15 (nonresidents/part-year).
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.