Updated May 10, 2026
Capital Gains: Short-term (≤1 year): 10%-37%; Long-term (>1 year): 0%-20% (+3.8% NIIT for high earners)Income Tax: 10%-37% (ordinary income tax rates; self-employment tax up to 15.3% may apply)Tax Summary
The IRS treats cryptocurrency and digital assets as property. Sales, trades, or uses trigger capital gains taxes based on holding period. Mining, staking, and rewards generate ordinary income at fair market value.
Quick facts for United States
Capital Gains Tax
Short-term (≤1 year): 10%-37%; Long-term (>1 year): 0%-20% (+3.8% NIIT for high earners)Income Tax Rate
10%-37% (ordinary income tax rates; self-employment tax up to 15.3% may apply)Capital Gains Tax
Short-term (≤1 year): 10%-37%; Long-term (>1 year): 0%-20% (+3.8% NIIT for high earners)- Gains/losses from sales, exchanges (crypto-to-crypto), spending, or fees are taxable.
- Short-term: taxed at ordinary income rates; long-term: preferential rates.
- Holding period starts day after acquisition, ends on disposition day.
- Basis methods: FIFO default or specific ID with records.
- $3,000 annual net capital loss deduction limit.
- No exemptions specific to crypto.
- Short-term: taxed at ordinary income rates; long-term: preferential rates.
- Holding period starts day after acquisition, ends on disposition day.
- Basis methods: FIFO default or specific ID with records.
- $3,000 annual net capital loss deduction limit.
- No exemptions specific to crypto.
Income Tax
10%-37% (ordinary income tax rates; self-employment tax up to 15.3% may apply)- Mining rewards taxed as ordinary income at FMV on receipt.
- Staking rewards same: ordinary income at FMV when received/control obtained.
- Airdrops, hard forks: income at FMV if dominion/control; basis equals FMV.
- Income from services (e.g., payments) at FMV.
- Report on Schedule 1; self-employed add SE tax.
- Staking rewards same: ordinary income at FMV when received/control obtained.
- Airdrops, hard forks: income at FMV if dominion/control; basis equals FMV.
- Income from services (e.g., payments) at FMV.
- Report on Schedule 1; self-employed add SE tax.
State-by-State Tax Guides
Browse dedicated state guides without loading every state’s full tax content into the initial page.
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%
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%
Reporting Requirements
- Report capital gains/losses on Form 8949 and Schedule D (Form 1040).
- Ordinary income on Schedule 1 (Form 1040).
- Brokers report via Form 1099-DA for 2025+ transactions (sent by Jan 31, filed by Feb).
- Maintain records of cost basis, FMV, dates.
- File by April 15, 2027 for 2026 tax year (extensions available).
- Ordinary income on Schedule 1 (Form 1040).
- Brokers report via Form 1099-DA for 2025+ transactions (sent by Jan 31, filed by Feb).
- Maintain records of cost basis, FMV, dates.
- File by April 15, 2027 for 2026 tax year (extensions available).
Special Notes
- Form 1099-DA mandatory for brokers on 2025+ sales (gross proceeds, optional basis).
- DeFi/non-custodial brokers: delayed reporting to 2027 per regs.
- Specific ID or FIFO/HIFO for basis; safe harbors for pre-2025.
- Gas fees/miner fees deductible as transaction costs.
- Updated FAQs Dec 2025; proposed e-delivery regs March 2026.
- DeFi/non-custodial brokers: delayed reporting to 2027 per regs.
- Specific ID or FIFO/HIFO for basis; safe harbors for pre-2025.
- Gas fees/miner fees deductible as transaction costs.
- Updated FAQs Dec 2025; proposed e-delivery regs March 2026.
Recent News
Latest updates about crypto taxes in United States
Trump, Crypto Tax, and the Headlines You Should Stop Believing
Discusses rumors of crypto tax exemptions under Trump and clarifies actual policies. Notes no broad exemptions as of 2026.
April 25, 2026
61% Of Crypto Investors Are Unaware Of The New IRS 1099-DA Rules
Survey shows most investors unaware of new broker reporting for 2025 tax year via 1099-DA. Highlights compliance challenges.
April 24, 2026
U.S. lawmakers take another swing at crypto tax policy with revised bill
Bipartisan bill revises IRS crypto tax rules, aiming for fairer treatment.
April 13, 2026
April 1 Tax Policy Update
Treasury/IRS Notice 2026-23 on priority guidance; updated crypto tax legislation from Ways and Means.
April 1, 2026
Why the US Tax Code Needs to Catch Up With Crypto Reporting
New 1099-DA requires reporting every crypto transaction; calls for tax code updates.
March 18, 2026
2 Cryptocurrency Tax Rule Changes Going Into Effect in 2026
IRS tightens rules on exchanges/wallets with 1099-DA and basis reporting.
February 3, 2026
2026 Crypto Tax Forecast: Hot with a High Chance of Enforcement
Analyzes crypto tax under Biden/Trump admins; expects increased enforcement.
January 28, 2026
Reporting Digital Assets: What US Investors Need to Know for 2026
Crypto as property; IRS views require reporting sales as capital gains.
January 16, 2026
US lawmakers urge IRS to end double taxation on crypto staking before 2026
Lawmakers push IRS to stop taxing staking rewards twice (income + gains).
December 22, 2025
Ringing In Crypto's 'Watershed' Tax Year: A Tricky 2026 Filing Season
2026 filing for 2025 taxes messy due to new reporting; experts warn of pitfalls.
December 30, 2025
United States Crypto Tax FAQ
Is cryptocurrency taxed in United States?
The IRS treats cryptocurrency and digital assets as property. Sales, trades, or uses trigger capital gains taxes based on holding period. Mining, staking, and rewards generate ordinary income at fair market value.
What is the capital gains tax rate on crypto in United States?
The capital gains tax rate for cryptocurrency in United States is Short-term (≤1 year): 10%-37%; Long-term (>1 year): 0%-20% (+3.8% NIIT for high earners). - Gains/losses from sales, exchanges (crypto-to-crypto), spending, or fees are taxable.
How do I report crypto taxes in United States?
- Report capital gains/losses on Form 8949 and Schedule D (Form 1040).
Are crypto-to-crypto trades taxable in United States?
In most cases, crypto-to-crypto trades are taxable events in United States. When you exchange one cryptocurrency for another, you may realize a capital gain or loss based on the difference between your cost basis and the fair market value at the time of the trade.
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.