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Washington

Crypto Tax Guide 2026

Updated April 26, 2026
Capital Gains: 7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted)Income Tax: 0% (no state income tax)
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Tax Summary

Washington has no personal income tax. Crypto mining and staking rewards face no state tax. A 7% excise tax applies to long-term capital gains over $278,000.

Quick facts for Washington, United States
Capital Gains Tax
7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted)
Income Tax Rate
0% (no state income tax)
Capital Gains Tax
7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted)
• Crypto is classified as intangible property for capital gains tax.
• Long-term gains (held >1 year) are subject to 7% excise tax if domiciled in WA at sale.
• Applies to gains over standard deduction ($278,000 for 2025 per individual/married couple).
• Exemptions: real estate, retirement accounts, depreciable business assets, timber.
• Deductions: small business sale, charitable donations over threshold.
Income Tax
0% (no state income tax)
• No state tax on mining income or staking rewards.
• Treated as ordinary income only for federal taxes.
• No state-specific income tax rules for crypto.
Reporting Requirements
• File Capital Gains Excise Tax return only if tax owed (gains > threshold).
• Submit copy of federal tax return and documentation.
• Electronic filing via My DOR; due April 15 (2025 extended to May 1, 2026).
• Extension available if federal extended, but payment due timely.
Special Notes
• Tax is excise tax on long-term gains only; short-term gains untaxed at state level.
• Threshold adjusted annually for inflation.
• Credits available for taxes paid to other states or B&O tax (from 2025).
• Crypto sales qualify if meeting long-term and domicile rules.
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%

Vermont

CG: 3.35%-8.75%Income: 3.35%-8.75%

Virginia

CG: 2-5.75%Income: 2-5.75%

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%

Washington Crypto Tax FAQ

Is cryptocurrency taxed in Washington?
Washington has no personal income tax. Crypto mining and staking rewards face no state tax. A 7% excise tax applies to long-term capital gains over $278,000.
What is the crypto capital gains tax rate in Washington?
The state-level capital gains treatment in Washington is currently listed as 7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted).
How do I report crypto taxes in Washington?
• File Capital Gains Excise Tax return only if tax owed (gains > threshold).

Compare With Other Countries

🇦🇺

Australia

0-45% (marginal rates; 50% CGT discount if held >12 months)
🇧🇷

Brazil

15-22.5% (progressive)
🇨🇦

Canada

50% inclusion (66.67% over $250k annual gains); taxed at marginal rates (15-54%)
🇫🇷

France

30% PFU (occasional traders); 0-45% progressive (professionals)
View all 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.