Updated March 22, 2026
Capital Gains: 7%Income Tax: 0%Tax Summary
Washington state has no personal income tax. It levies a 7% excise tax on long-term capital gains from cryptocurrency exceeding $278,000 deduction (2025). Short-term gains and ordinary crypto income face 0% state tax.
Quick facts for Washington, United States
Capital Gains Tax
7%Income Tax Rate
0%Capital Gains Tax
7%• Cryptocurrency classified as intangible personal property.
• Long-term gains if asset held more than 1 year.
• 7% tax on net long-term gains over $278,000 standard deduction (2025, inflation-adjusted annually).
• Applies to WA domiciliaries at time of sale; gains sourced to domicile.
• Short-term gains exempt from state capital gains tax.
• Exemptions: retirement accounts, real estate, depreciable assets, qualified small business sales.
• Long-term gains if asset held more than 1 year.
• 7% tax on net long-term gains over $278,000 standard deduction (2025, inflation-adjusted annually).
• Applies to WA domiciliaries at time of sale; gains sourced to domicile.
• Short-term gains exempt from state capital gains tax.
• Exemptions: retirement accounts, real estate, depreciable assets, qualified small business sales.
Income Tax
0%• No state personal income tax on crypto mining, staking, or other ordinary income.
• Rewards treated as ordinary income federally only.
• Business activities may trigger B&O tax on gross receipts.
• Rewards treated as ordinary income federally only.
• Business activities may trigger B&O tax on gross receipts.
Reporting Requirements
• File electronic Capital Gains Tax return via My DOR if tax owed.
• Include copy of federal tax return and supporting docs.
• Due April 15 (e.g., 2025 returns by May 1, 2026 due to extension); payment due same date.
• No filing if no tax due.
• Include copy of federal tax return and supporting docs.
• Due April 15 (e.g., 2025 returns by May 1, 2026 due to extension); payment due same date.
• No filing if no tax due.
Special Notes
• Only long-term gains taxed; short-term not.
• New B&O tax credit for CGT-liable sales starting 2025.
• Credit for taxes paid to other jurisdictions.
• NFTs subject to state sales tax.
• Threshold/deduction per individual or married couple/domestic partnership.
• New B&O tax credit for CGT-liable sales starting 2025.
• Credit for taxes paid to other jurisdictions.
• NFTs subject to state sales tax.
• Threshold/deduction per individual or married couple/domestic partnership.
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)
Vermont
CG: 3.35%-8.75% (taxed as ordinary income)Income: 3.35%-8.75%
Virginia
CG: 2%-5.75%Income: 2%-5.75%
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%
Washington Crypto Tax FAQ
Is cryptocurrency taxed in Washington?
Washington state has no personal income tax. It levies a 7% excise tax on long-term capital gains from cryptocurrency exceeding $278,000 deduction (2025). Short-term gains and ordinary crypto income face 0% state tax.
What is the crypto capital gains tax rate in Washington?
The state-level capital gains treatment in Washington is currently listed as 7%.
How do I report crypto taxes in Washington?
• File electronic Capital Gains Tax return via My DOR if tax owed.
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.