Updated April 26, 2026
Capital Gains: 3.35%-8.75%Income Tax: 3.35%-8.75%Tax Summary
Vermont treats cryptocurrency as property under federal rules. Gains and income are taxed at progressive rates from 3.35% to 8.75%. A $5,000 exclusion applies to net long-term capital gains.
Quick facts for Vermont, United States
Capital Gains Tax
3.35%-8.75%Income Tax Rate
3.35%-8.75%Estimate your crypto taxes in United States
Use our free calculator to model trading gains, staking income, mining income, and other crypto income using the headline rates from the matching country guide.
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Open calculatorCapital Gains Tax
3.35%-8.75%• Crypto capital gains classified per federal rules (short-term: ordinary; long-term: preferential federally).
• Vermont taxes all capital gains as ordinary income.
• Exclusion: greater of $5,000 or 40% of adjusted net LTCG (crypto typically qualifies only for $5,000 as intangible asset).
• No specific thresholds beyond federal holding periods.
• Vermont taxes all capital gains as ordinary income.
• Exclusion: greater of $5,000 or 40% of adjusted net LTCG (crypto typically qualifies only for $5,000 as intangible asset).
• No specific thresholds beyond federal holding periods.
Income Tax
3.35%-8.75%• Mining income taxed as ordinary income at fair market value (FMV) when received.
• Staking rewards taxed as ordinary income at FMV.
• Vermont follows federal income classification rules.
• No state-specific modifications.
• Staking rewards taxed as ordinary income at FMV.
• Vermont follows federal income classification rules.
• No state-specific modifications.
Reporting Requirements
• Report all crypto transactions on federal Form 1040 (Schedule D, 8949); flows to Vermont VT-1040.
• Claim capital gains exclusion on Schedule IN-153 if eligible.
• File VT-1040 by April 15 if Vermont AGI exceeds filing thresholds (e.g., $13,850 single standard deduction).
• Maintain records of cost basis, FMV, and transactions.
• Claim capital gains exclusion on Schedule IN-153 if eligible.
• File VT-1040 by April 15 if Vermont AGI exceeds filing thresholds (e.g., $13,850 single standard deduction).
• Maintain records of cost basis, FMV, and transactions.
Special Notes
• No state sales or use tax on cryptocurrency purchases or exchanges.
• Conforms closely to IRS crypto guidance (e.g., Notice 2014-21).
• No unique crypto regulations; proposals for rate hikes to 13.3% not enacted as of 2026.
• Blockchain-friendly policies exist but no special tax incentives for crypto.
• Conforms closely to IRS crypto guidance (e.g., Notice 2014-21).
• No unique crypto regulations; proposals for rate hikes to 13.3% not enacted as of 2026.
• Blockchain-friendly policies exist but no special tax incentives for crypto.
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%
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%
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%
Vermont Crypto Tax FAQ
Is cryptocurrency taxed in Vermont?
Vermont treats cryptocurrency as property under federal rules. Gains and income are taxed at progressive rates from 3.35% to 8.75%. A $5,000 exclusion applies to net long-term capital gains.
What is the crypto capital gains tax rate in Vermont?
The state-level capital gains treatment in Vermont is currently listed as 3.35%-8.75%.
How do I report crypto taxes in Vermont?
• Report all crypto transactions on federal Form 1040 (Schedule D, 8949); flows to Vermont VT-1040.
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.