Updated October 23, 2025
Capital Gains: 4.25%Income Tax: 4.25%Quick Facts: Michigan, United States Crypto Taxes
Capital Gains Tax
4.25%Income Tax Rate
4.25%Tax 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
4.25%- 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
4.25%- 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.
Other US States
Compare state-level crypto tax differences across the United States.
Alabama
CG: 2-5%Income: 2-5%
Alaska
CG: 0%Income: 0%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: Varies (0% - 4.9%)Income: Varies (0% - 4.9%)
California
CG: 1-13.3%Income: 1-13.3%
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 3-6.99%Income: 3-6.99%
Delaware
CG: 0% - 6.6%Income: 0% - 6.6%
Florida
CG: 0%Income: 0%
Georgia
CG: 1-5.75%Income: 1-5.75%
Hawaii
CG: 1.4% - 11%Income: 1.4% - 11%
Idaho
CG: 0-5.8%Income: 0-5.8%
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 3.05% state + 0-3.38% countyIncome: 3.05% state + 0-3.38% county
Iowa
CG: Varies (4.40% - 6.00%)Income: Varies (4.40% - 6.00%)
Kansas
CG: 3.1-5.7%Income: 3.1-5.7%
Kentucky
CG: 4.5%Income: 4.5%
Louisiana
CG: 1.85% - 4.25%Income: 1.85% - 4.25%
Maine
CG: 5.8% - 7.15%Income: 5.8% - 7.15%
Maryland
CG: Varies (2% - 5.75% state + 1.75% - 3.2% local)Income: Varies (2% - 5.75% state + 1.75% - 3.2% local)
Massachusetts
CG: 5-12%Income: 5%
Minnesota
CG: 5.35% - 9.85%Income: 5.35% - 9.85%
Mississippi
CG: 0-5%Income: 0-5%
Missouri
CG: 1.5-5.3%Income: 1.5-5.3%
Montana
CG: 1%-6.9%Income: 1%-6.9%
Nebraska
CG: 2.46% - 6.64%Income: 2.46% - 6.64%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4% - 10.75%Income: 1.4% - 10.75%
Michigan Crypto Tax FAQ
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.
The state-level capital gains treatment in Michigan is currently listed as 4.25%.
- Report crypto gains and income on Michigan state tax return if filing federally.
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.