Updated March 29, 2026
Capital Gains: Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)Income Tax: 1.95%-2.5%Tax Summary
North Dakota treats cryptocurrency as property, following IRS guidelines. Crypto capital gains and income are taxed at state individual income tax rates of 1.95% to 2.5%. Long-term capital gains qualify for a 40% exclusion from state taxation.
Quick facts for North Dakota, United States
Capital Gains Tax
Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)Income Tax Rate
1.95%-2.5%Capital Gains Tax
Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)• Crypto capital gains classified as short-term (held <1 year: ordinary income) or long-term (held >1 year) per federal rules.
• North Dakota allows 40% exclusion on net long-term capital gains; remainder taxed at ordinary state rates.
• No state-specific exemptions or thresholds for crypto gains.
• Gains reported on federal Schedule D, adjusted for ND exclusion on state return.
• North Dakota allows 40% exclusion on net long-term capital gains; remainder taxed at ordinary state rates.
• No state-specific exemptions or thresholds for crypto gains.
• Gains reported on federal Schedule D, adjusted for ND exclusion on state return.
Income Tax
1.95%-2.5%• Mining income taxed as ordinary income at state rates upon receipt.
• Staking rewards taxed as ordinary income at fair market value when received.
• Follows federal classification; no state-specific rules.
• Airdrops and forks taxed as income if control obtained.
• Staking rewards taxed as ordinary income at fair market value when received.
• Follows federal classification; no state-specific rules.
• Airdrops and forks taxed as income if control obtained.
Reporting Requirements
• ND residents report worldwide crypto gains/income on Form 40.
• Include federal AGI, subtract 40% LTCG on Schedule I.
• File by April 15; extensions available to Oct 15 with payment.
• No separate crypto forms; match federal reporting.
• Include federal AGI, subtract 40% LTCG on Schedule I.
• File by April 15; extensions available to Oct 15 with payment.
• No separate crypto forms; match federal reporting.
Special Notes
• No dedicated crypto tax guidance from ND Tax Commissioner.
• Lowest state income tax rates in US; top marginal 2.5%.
• Virtual currency mentioned in sales tax for marketplace facilitators, not individual income.
• Lowest state income tax rates in US; top marginal 2.5%.
• Virtual currency mentioned in sales tax for marketplace facilitators, not individual income.
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% - 3.9%Income: 0% - 3.9%
California
CG: 1%-13.3% (ordinary income rates)Income: 1%-13.3% (ordinary income rates)
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 2%-6.99% (taxed as ordinary income)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% (taxed as ordinary income)Income: 5.19% (flat rate)
Hawaii
CG: 7.25% (elective on net capital gains); short-term: 1.4%-11%Income: 1.4%-11%
Idaho
CG: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafterIncome: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafter
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 2.95% state + 0.5%-3% county (varies by location)<argumentIncome: 2.95% state + 0.5%-3% county (varies by location)<argument
Iowa
CG: 3.8% (flat rate, taxed as ordinary income)Income: 3.8% (flat rate)
Kansas
CG: 5.2% - 5.58%Income: 5.2% - 5.58%
Kentucky
CG: 3.5% (flat rate)Income: 3.5% (flat rate)
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-7.15%Income: 5.8%-7.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.3% local + 2% surtax on net gains (FAGI > $350k)<grok:render type="render_inlIncome: 2%-6.5% state + 2.25%-3.3% local
Massachusetts
CG: 5% (long-term), 8.5% (short-term)Income: 5% flat + 4% surtax over $1,083,150
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35%-9.85%; +1% on net investment income over $1MIncome: 5.35%-9.85%
Mississippi
CG: 4.4%Income: 4.4%
Missouri
CG: 0%Income: 0-4.7%
Montana
CG: Short-term: 4.7%-5.65%; Long-term: 3%-4.1%Income: 4.7%-5.65%
Nebraska
CG: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)Income: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4%-10.75% (taxed as ordinary income)Income: 1.4%-10.75%
New Mexico
CG: 1.5% - 5.9% (with deduction)Income: 1.5% - 5.9%
New York
CG: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYCIncome: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYC
North Carolina
CG: 4.25% (TY 2025); 3.99% (TY 2026)Income: 4.25% (TY 2025); 3.99% (TY 2026)
Ohio
CG: 0%-3.125%Income: 0%-3.125%
Oklahoma
CG: 0.25% - 4.5%Income: 0.25% - 4.5%
Oregon
CG: 4.75%-9.9% (taxed as ordinary income)Income: 4.75%-9.9%
Pennsylvania
CG: 3.07%Income: 3.07%
Rhode Island
CG: 3.75%-5.99%Income: 3.75%-5.99%
South Carolina
CG: 0%-6% (44% deduction on net LTCG)Income: 0%-6%
South Dakota
CG: 0%Income: 0%
Tennessee
CG: 0%Income: 0%
Texas
CG: 0%Income: 0%
Utah
CG: 4.5% (flat, as ordinary income)Income: 4.5% (flat rate)
Vermont
CG: 3.35%-8.75% (taxed as ordinary income)Income: 3.35%-8.75%
Virginia
CG: 2%-5.75%Income: 2%-5.75%
Washington
CG: 7%Income: 0%
West Virginia
CG: 2.22%-4.82%Income: 2.22%-4.82%
Wisconsin
CG: 3.50%-7.65% (30% deduction for long-term gains)Income: 3.50%-7.65%
Wyoming
CG: 0%Income: 0%
North Dakota Crypto Tax FAQ
Is cryptocurrency taxed in North Dakota?
North Dakota treats cryptocurrency as property, following IRS guidelines. Crypto capital gains and income are taxed at state individual income tax rates of 1.95% to 2.5%. Long-term capital gains qualify for a 40% exclusion from state taxation.
What is the crypto capital gains tax rate in North Dakota?
The state-level capital gains treatment in North Dakota is currently listed as Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion).
How do I report crypto taxes in North Dakota?
• ND residents report worldwide crypto gains/income on Form 40.
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.