Updated May 10, 2026
Capital Gains: 4.25%Income Tax: 4.25%Tax Summary
Michigan treats cryptocurrency as property, following federal IRS guidelines. Capital gains and crypto income are taxed at the flat state income tax rate of 4.25%. No sales or use tax applies to crypto transactions.
Quick facts for Michigan, United States
Capital Gains Tax
4.25%Income Tax Rate
4.25%Capital Gains Tax
4.25%• Crypto capital gains classified per federal rules (short-term: ordinary; long-term: preferential federally).
• Taxed as ordinary income at Michigan's flat 4.25% rate.
• No state-specific exemptions, thresholds, or preferential rates for crypto.
• Includes gains from sales, trades, or disposals.
• Taxed as ordinary income at Michigan's flat 4.25% rate.
• No state-specific exemptions, thresholds, or preferential rates for crypto.
• Includes gains from sales, trades, or disposals.
Income Tax
4.25%• Mining rewards taxed as ordinary income at fair market value upon receipt.
• Staking rewards taxed as ordinary income at fair market value upon receipt.
• Airdrops and hard forks taxed as ordinary income.
• Taxed at flat 4.25% state rate.
• Staking rewards taxed as ordinary income at fair market value upon receipt.
• Airdrops and hard forks taxed as ordinary income.
• Taxed at flat 4.25% state rate.
Reporting Requirements
• Report all crypto transactions via federal returns; flows to MI-1040 from federal AGI.
• Use MI-1040 form; attach federal Schedule D if adjustments needed.
• Annual filing deadline: April 15; extensions to October 15 allowed.
• Use MI-1040 form; attach federal Schedule D if adjustments needed.
• Annual filing deadline: April 15; extensions to October 15 allowed.
Special Notes
• Michigan conforms to federal IRC for crypto classification and taxation.
• No sales/use tax on crypto per Dept. of Treasury.
• Flat 4.25% rate confirmed for 2026 tax year.
• HB 4513 for bitcoin mining deduction introduced but not enacted.
• Local city income taxes (e.g., Detroit 2.4%) may apply separately.
• No sales/use tax on crypto per Dept. of Treasury.
• Flat 4.25% rate confirmed for 2026 tax year.
• HB 4513 for bitcoin mining deduction introduced but not enacted.
• Local city income taxes (e.g., Detroit 2.4%) may apply separately.
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%
Hawaii
CG: Varies: short-term 1.4-11%, net long-term up to 7.25%Income: 1.4-11%
Idaho
CG: 0-5.3%Income: 0-5.3%
Illinois
CG: 4.95% (flat rate)Income: 4.95% (flat rate)
Indiana
CG: 2.95% state + 0.5%-3% local county (varies)Income: 2.95% state + 0.5%-3% local county (varies)
Iowa
CG: 3.8%Income: 3.8%
Kansas
CG: 5.2%-5.58%Income: 5.2%-5.58%
Kentucky
CG: 3.5%Income: 3.5%
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-9.15% (taxed as ordinary income)Income: 5.8%-9.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.2% local; +2% surtax on net gains if FAGI >$350,000Income: 2%-6.5% state + 2.25%-3.2% local (varies by county)
Massachusetts
CG: 5% (LTCG), 8.5% (STCG) + 4% surtax >$1,083,150Income: 5% + 4% surtax >$1,083,150
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%
Michigan Crypto Tax FAQ
Is cryptocurrency taxed in Michigan?
Michigan treats cryptocurrency as property, following federal IRS guidelines. Capital gains and crypto income are taxed at the flat state income tax rate of 4.25%. No sales or use tax applies to crypto transactions.
What is the crypto capital gains tax rate in Michigan?
The state-level capital gains treatment in Michigan is currently listed as 4.25%.
How do I report crypto taxes in Michigan?
• Report all crypto transactions via federal returns; flows to MI-1040 from federal AGI.
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.