Updated May 10, 2026
Capital Gains: 5.35%-9.85% (+1% NIIT on net investment income > $1M)Income Tax: 5.35%-9.85%Tax Summary
Minnesota treats cryptocurrency as property, following federal IRS guidelines. Capital gains and income from crypto are subject to state income tax rates of 5.35%-9.85%. A 1% Net Investment Income Tax applies to net investment income over $1 million.
Quick facts for Minnesota, United States
Capital Gains Tax
5.35%-9.85% (+1% NIIT on net investment income > $1M)Income Tax Rate
5.35%-9.85%Capital Gains Tax
5.35%-9.85% (+1% NIIT on net investment income > $1M)• Crypto capital gains follow federal classification as property sales.
• Taxed as ordinary income at progressive state rates; no preferential long-term rates.
• 1% NIIT on portion of net investment income (including cap gains) exceeding $1M.
• No crypto-specific exemptions or thresholds.
• Taxed as ordinary income at progressive state rates; no preferential long-term rates.
• 1% NIIT on portion of net investment income (including cap gains) exceeding $1M.
• No crypto-specific exemptions or thresholds.
Income Tax
5.35%-9.85%• Mining rewards taxed as ordinary income at fair market value when received.
• Staking rewards taxed as ordinary income upon receipt.
• Airdrops and other income follow federal ordinary income rules.
• Applied at same progressive state income tax rates.
• Staking rewards taxed as ordinary income upon receipt.
• Airdrops and other income follow federal ordinary income rules.
• Applied at same progressive state income tax rates.
Reporting Requirements
• Report crypto transactions on federal Schedule D (cap gains) and Schedule 1 (income); flows to MN Form M1.
• File MN Form M1 by April 15; use Schedule M1M for adjustments.
• NIIT reported separately on Form M1NIIT if applicable.
• Electronic filing recommended; extensions available to October 15.
• File MN Form M1 by April 15; use Schedule M1M for adjustments.
• NIIT reported separately on Form M1NIIT if applicable.
• Electronic filing recommended; extensions available to October 15.
Special Notes
• Sales/use tax (6.875% state + local) on NFTs if underlying goods/services taxable.
• No state subtraction for crypto losses beyond federal rules.
• Proposed exemptions (e.g., Bitcoin Act) not enacted as of 2026.
• Monitor federal changes; MN generally conforms.
• No state subtraction for crypto losses beyond federal rules.
• Proposed exemptions (e.g., Bitcoin Act) not enacted as of 2026.
• Monitor federal changes; MN generally conforms.
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
Michigan
CG: 4.25%Income: 4.25%
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%
Minnesota Crypto Tax FAQ
Is cryptocurrency taxed in Minnesota?
Minnesota treats cryptocurrency as property, following federal IRS guidelines. Capital gains and income from crypto are subject to state income tax rates of 5.35%-9.85%. A 1% Net Investment Income Tax applies to net investment income over $1 million.
What is the crypto capital gains tax rate in Minnesota?
The state-level capital gains treatment in Minnesota is currently listed as 5.35%-9.85% (+1% NIIT on net investment income > $1M).
How do I report crypto taxes in Minnesota?
• Report crypto transactions on federal Schedule D (cap gains) and Schedule 1 (income); flows to MN Form M1.
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.