Updated October 23, 2025
Capital Gains: 5.35% - 9.85%Income Tax: 5.35% - 9.85%Quick Facts: Minnesota, United States Crypto Taxes
Capital Gains Tax
5.35% - 9.85%Income Tax Rate
5.35% - 9.85%Tax 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
5.35% - 9.85%• 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
5.35% - 9.85%• 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.
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%
Michigan
CG: 4.25%Income: 4.25%
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%
Minnesota Crypto Tax FAQ
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.
The state-level capital gains treatment in Minnesota is currently listed as 5.35% - 9.85%.
• Report all crypto gains, losses, and income on state tax returns.
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.