Updated April 12, 2026
Capital Gains: Short-term: 10-37%; Long-term: 0-20% (+3.8% NIIT)Income Tax: 10-37% (ordinary income rates)Tax Summary
The IRS treats cryptocurrencies as property. Capital gains arise from selling, trading, or spending crypto and are taxed as short-term (10-37%) or long-term (0-20%). Income from mining, staking, airdrops is ordinary income taxed at 10-37%.
Quick facts for United States
Capital Gains Tax
Short-term: 10-37%; Long-term: 0-20% (+3.8% NIIT)Income Tax Rate
10-37% (ordinary income rates)Capital Gains Tax
Short-term: 10-37%; Long-term: 0-20% (+3.8% NIIT)• Crypto classified as property for tax purposes.
• Gains taxable on sales for fiat, trades for other crypto/property, or use in payments/services.
• Short-term if held ≤1 year (ordinary rates); long-term if >1 year (preferential rates).
• No de minimis exemptions or thresholds.
• Gain = FMV received minus adjusted basis (cost + fees); FIFO default basis method.
• Gains taxable on sales for fiat, trades for other crypto/property, or use in payments/services.
• Short-term if held ≤1 year (ordinary rates); long-term if >1 year (preferential rates).
• No de minimis exemptions or thresholds.
• Gain = FMV received minus adjusted basis (cost + fees); FIFO default basis method.
Income Tax
10-37% (ordinary income rates)• Mining rewards taxed as ordinary income at FMV when mined.
• Staking rewards taxed as ordinary income at FMV when received.
• Airdrops, hard forks: ordinary income at FMV if user gains control.
• Other income (payments, interest): ordinary income at FMV.
• Self-employment tax may apply; later sales trigger capital gains.
• Staking rewards taxed as ordinary income at FMV when received.
• Airdrops, hard forks: ordinary income at FMV if user gains control.
• Other income (payments, interest): ordinary income at FMV.
• Self-employment tax may apply; later sales trigger capital gains.
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% (taxed as ordinary income)Income: 2-5%
Alaska
CG: 0%Income: 0%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: 0-3.9% (50% deduction for long-term gains)Income: 0-3.9%
California
CG: 1%-13.3%Income: 1%-13.3%
Colorado
CG: 4.4%Income: 4.4%
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: 7.25%Income: 1.4%-11%
Idaho
CG: 5.3%Income: 5.3%
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 2.95% state + 0.5-3% local (varies)Income: 2.95% state + 0.5-3% local (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% (flat)Income: 3% (flat)
Maine
CG: 5.8%-7.15%Income: 5.8%-7.15%
Maryland
CG: 2%-5.75% state + 2.25%-3.2% local; +2% surtax if AGI >$350kIncome: 2%-5.75% state + 2.25%-3.2% local
Massachusetts
CG: 5% (long-term), 8.5% (short-term)Income: 5% flat + 4% surtax over $1,083,150
Michigan
CG: 4.25% flatIncome: 4.25% flat
Minnesota
CG: 5.35%-9.85% (taxed as ordinary income)Income: 5.35%-9.85% (ordinary income rates)
Mississippi
CG: 0% on first $10,000; 4% thereafter (2026)Income: 0% on first $10,000; 4% thereafter (2026)
Missouri
CG: 0%Income: 0-4.7%
Montana
CG: 3.0%-4.1% (long-term); 4.7%-5.65% (short-term)Income: 4.7%-5.65%
Nebraska
CG: 2.46%-4.55%Income: 2.46%-4.55%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0% (Exempt)Income: 0% (Exempt)
New Jersey
CG: 1.4%-10.75%Income: 1.4%-10.75%
New Mexico
CG: 1.5%-5.9% (40% deduction on qualifying net long-term gains)Income: 1.5%-5.9%
New York
CG: 4% - 10.9% (taxed as ordinary income)Income: 4% - 10.9%
North Carolina
CG: Flat 4.25% (2025); 3.99% (2026+)Income: Flat 4.25% (2025); 3.99% (2026+)
North Dakota
CG: 1.95%-2.50%Income: 1.95%-2.50%
Ohio
CG: 0%-3.125%Income: 0%-3.125%
Oklahoma
CG: 2.50%-4.50%Income: 2.50%-4.50%
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: 0%-6% (44% deduction for long-term)Income: 0%-6%
South Dakota
CG: 0%Income: 0%
Tennessee
CG: ExemptIncome: Exempt
Texas
CG: 0%Income: 0%
Utah
CG: 4.5% flat rateIncome: 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%
Reporting Requirements
• Report all crypto transactions: gains on Form 8949/Schedule D; income on Schedule 1/Schedule C.
• Answer digital assets question on Form 1040.
• Brokers report proceeds/cost basis on Form 1099-DA (new for 2025 transactions).
• File by April 15, 2026 for 2025 tax year (extension to Oct 15).
• Keep records of FMV, basis, dates regardless of forms received.
• Answer digital assets question on Form 1040.
• Brokers report proceeds/cost basis on Form 1099-DA (new for 2025 transactions).
• File by April 15, 2026 for 2025 tax year (extension to Oct 15).
• Keep records of FMV, basis, dates regardless of forms received.
Special Notes
• No wash sale rule for crypto (can harvest losses immediately).
• Basis methods: FIFO (default), LIFO, HIFO, Specific ID allowed.
• New broker reporting via 1099-DA starts for 2025 (filed 2026).
• State taxes vary (e.g., CA requires separate reporting).
• Track wallet transfers (non-taxable but affect basis).
• Proposed regs ease electronic 1099-DA delivery.
• Basis methods: FIFO (default), LIFO, HIFO, Specific ID allowed.
• New broker reporting via 1099-DA starts for 2025 (filed 2026).
• State taxes vary (e.g., CA requires separate reporting).
• Track wallet transfers (non-taxable but affect basis).
• Proposed regs ease electronic 1099-DA delivery.
Recent News
Latest updates about crypto taxes in United States
Coinbase survey finds over half of investors don't understand crypto tax
2026 Crypto Tax Readiness Report shows only 49% know crypto is taxable on sales. Highlights compliance gaps among US users.
March 30, 2026
Crypto Tax Guide: 2025 and 2026 Rates and Rules
Details short-term 10-37% and long-term 0-20% rates for crypto. Covers filing thresholds and strategies.
March 24, 2026
Crypto Tax 2026: New Form 1099-DA and California Investors
Explains new 1099-DA requirements and California-specific crypto tax rules for 2026 filing.
March 31, 2026
Crypto Taxes (2025-2026) in the United States: What to Know
Outlines tax brackets for short/long-term gains and reporting obligations for 2025 taxes filed in 2026.
March 31, 2026
US crypto tax reporting in 2026: What you need to know
Covers Form 1099-DA, cost basis tracking, and wallet-level reporting for 2026.
February 24, 2026
Crypto Tax Rates 2026: Breakdown by Income Level
Provides detailed charts for crypto tax rates based on income brackets for 2026.
March 11, 2026
Reminders for taxpayers about digital assets
IRS reminds taxpayers to report digital assets; brokers send 1099-DA by Feb 17, 2026.
January 28, 2026
Prepare to file in 2026: Get Ready for tax season
IRS updates for 2026 filing include reporting digital assets like crypto and NFTs.
January 6, 2026
Ringing In Crypto's 'Watershed' Tax Year: A Tricky 2026 Filing Season
Discusses challenges of new reporting rules for crypto taxes in 2026 filing.
December 30, 2025
Crypto Tax Rates for 2026
Explains short-term ordinary rates and long-term preferential rates for US crypto taxes.
March 1, 2026
United States Crypto Tax FAQ
Is cryptocurrency taxed in United States?
The IRS treats cryptocurrencies as property. Capital gains arise from selling, trading, or spending crypto and are taxed as short-term (10-37%) or long-term (0-20%). Income from mining, staking, airdrops is ordinary income taxed at 10-37%.
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: 10-37%; Long-term: 0-20% (+3.8% NIIT). • Crypto classified as property for tax purposes.
How do I report crypto taxes in United States?
• Report all crypto transactions: gains on Form 8949/Schedule D; income on Schedule 1/Schedule C.
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.
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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.