Updated March 29, 2026
Capital Gains: 3.35%-8.75% (taxed as ordinary income)Income Tax: 3.35%-8.75%Tax Summary
Vermont treats cryptocurrency as property, following federal IRS guidelines. Crypto capital gains and income are taxed as ordinary income at state rates of 3.35%-8.75%. A capital gains exclusion of the greater of $5,000 or 40% of net capital gain applies to qualifying long-term gains.
Quick facts for Vermont, United States
Capital Gains Tax
3.35%-8.75% (taxed as ordinary income)Income Tax Rate
3.35%-8.75%Capital Gains Tax
3.35%-8.75% (taxed as ordinary income)• Crypto capital gains classified per federal rules (short-term/long-term) on Schedule D.
• Taxed as ordinary income at state level; added to Vermont AGI.
• Exclusion: greater of $5,000 or 40% of federal adjusted net capital gain (LTCG); reported on Schedule IN-113.
• Exclusion limited to positive net gain; does not apply to short-term gains.
• No separate LTCG preferential rate.
• Taxed as ordinary income at state level; added to Vermont AGI.
• Exclusion: greater of $5,000 or 40% of federal adjusted net capital gain (LTCG); reported on Schedule IN-113.
• Exclusion limited to positive net gain; does not apply to short-term gains.
• No separate LTCG preferential rate.
Income Tax
3.35%-8.75%• Mining income taxed as ordinary income at fair market value when mined.
• Staking rewards taxed as ordinary income at FMV when received.
• Follows federal treatment; included in federal AGI, flows to state.
• No state-specific rates or exemptions for mining/staking.
• Staking rewards taxed as ordinary income at FMV when received.
• Follows federal treatment; included in federal AGI, flows to state.
• No state-specific rates or exemptions for mining/staking.
Reporting Requirements
• Report all crypto gains/income on federal forms (8949, Schedule D, Sch 1); flows to Vermont return.
• Residents file Form IN-111 if VT AGI > $5,000 (single) or similar thresholds.
• Use Schedule IN-113 for capital gains exclusion adjustment.
• Deadline: April 15; extensions to October 15 with federal extension.
• Attach federal Schedule D if claiming exclusion.
• Residents file Form IN-111 if VT AGI > $5,000 (single) or similar thresholds.
• Use Schedule IN-113 for capital gains exclusion adjustment.
• Deadline: April 15; extensions to October 15 with federal extension.
• Attach federal Schedule D if claiming exclusion.
Special Notes
• No specific Vermont guidance on crypto; strictly follows federal property treatment.
• Capital gains exclusion available for LTCG from crypto sales if qualifying.
• No state sales/use tax guidance on crypto transactions.
• Vermont supports blockchain innovation but no special crypto tax incentives.
• Rates for tax year 2026 unchanged from prior years.
• Capital gains exclusion available for LTCG from crypto sales if qualifying.
• No state sales/use tax guidance on crypto transactions.
• Vermont supports blockchain innovation but no special crypto tax incentives.
• Rates for tax year 2026 unchanged from prior years.
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)
North Dakota
CG: Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)Income: 1.95%-2.5%
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)
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%
Vermont Crypto Tax FAQ
Is cryptocurrency taxed in Vermont?
Vermont treats cryptocurrency as property, following federal IRS guidelines. Crypto capital gains and income are taxed as ordinary income at state rates of 3.35%-8.75%. A capital gains exclusion of the greater of $5,000 or 40% of net capital gain applies to qualifying long-term 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% (taxed as ordinary income).
How do I report crypto taxes in Vermont?
• Report all crypto gains/income on federal forms (8949, Schedule D, Sch 1); flows to Vermont return.
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.