Crypto Taxes by State (2026): Rates, Rules & Forms

Start with the federal layer if you have not already: the 2026 capital gains guide covers the one-year holding rule and federal rates, and the how-to-report guide walks through Form 8949 and Schedule D. This page and its twelve state guides cover the second layer — what your state adds on top, using each state's own published rates and forms.

The 12 states, side by side

State	How crypto gains are treated	Rate	Main form
California	Ordinary income — no long-term preference	1% – 13.3%	Form 540
New York	Ordinary income; NYC residents add a city tax	3.9% – 10.9% (+3.876% NYC)	Form IT-201
New Jersey	Ordinary gross income; losses cannot be carried forward	1.4% – 10.75%	Form NJ-1040 (line 19)
Massachusetts	Long-term 5% · short-term 8.5% · 4% surtax at high incomes	5% / 8.5% (+4%)	Form 1 (Sch. B & D)
Illinois	Ordinary income — flat rate	4.95% flat	Form IL-1040
Georgia	Ordinary income — flat rate	4.99% flat (2026)	Form 500
Colorado	Ordinary income — flat rate	4.40% flat	Form DR 0104
North Carolina	Ordinary income — flat rate	3.99% flat (2026)	Form D-400
Arizona	Ordinary income — flat rate	2.5% flat	Form 140
Washington	No income tax — 7% excise on long-term gains above the standard deduction	0% / 7% / 9.9% excise	Capital gains return (My DOR)
Texas	No individual income tax	None	No state return
Florida	No individual income tax	None	No state return

Rates are the top or flat individual rates for tax year 2026 (Washington excise figures use the latest published standard deduction, $278,000 for 2025). Marginal brackets apply only to income inside each band. Open a state guide for brackets, forms, and gotchas.

The three patterns

Taxed as regular income (most states). California, New York, New Jersey, Massachusetts, and every flat-tax state here — Illinois, Georgia, Colorado, North Carolina, Arizona — tax crypto gains through the regular income tax. Almost none of them offer a long-term discount: the federal preference for holding over a year usually stops at the federal border. California is the extreme case (no preference, top rate 13.3%); Massachusetts is the odd one out whose short-term rate (8.5%) is higher than its long-term rate (5%).

No income tax at all. Texas and Florida — like Alaska, Nevada, New Hampshire, South Dakota, Tennessee, and Wyoming — levy no individual income tax, so there is no state tax on gains, staking, or mining, and no state return. Seven of the nine no-income-tax states are genuinely zero for crypto; New Hampshire taxes only interest and dividends, not capital gains.

The special cases. Washington pairs no income tax with a 7% excise tax on long-term gains above a large annual deduction — irrelevant for most filers, very relevant for one big exit. New York stacks a city income tax (up to 3.876%) on top of the state tax for New York City residents, on the same form. And New Jersey hides the harshest rule in the guide: capital losses cannot be carried forward or offset other income, ever.

Where to start

Crypto Capital Gains Tax Rates 2026 — the federal tables every state builds on.
How to Report Crypto Taxes — Form 8949, Schedule D, and the 1099-DA.
Free Crypto Tax Calculator — get your federal gain number first.
1099-DA Reconciler — check your broker's form against your own basis before filing anywhere.

Frequently asked questions

Nine states have no broad individual income tax — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming, and Washington. But Washington is the exception that matters for crypto: it levies a 7% excise tax on long-term capital gains above an annual standard deduction ($278,000 for 2025), rising to 9.9% on taxable gains above $1 million. The other eight genuinely take nothing at the state level.

Brokers send Form 1099-DA to the IRS and to you, not to your state. But most state returns start from federal figures, states receive federal return data under IRS information-sharing agreements, and Washington requires a copy of your federal return with its capital gains return. Assume your state can see the federal picture and keep the two consistent.

Almost never. California, New York, New Jersey, and every flat-tax state in this guide tax long-term gains at the same rates as wages. Massachusetts is the partial exception: its long-term rate (5%) is lower than its short-term rate (8.5%), though neither is a federal-style discount.

Usually the state where you were resident on the day you sold, because crypto is intangible property that follows its owner. Part-year residents typically file in both states and allocate by period. Large sales right after a move are a classic audit trigger — document the move before the sale.

In every income-tax state in this guide, yes — as ordinary income at the same rates as other income, on top of the federal tax. In the no-income-tax states there is no state tax on rewards, though selling rewarded coins long-term in Washington can trigger its excise tax.

Sources & verification

Each state guide cites and links its own tax authority (the FTB, the New York Department of Taxation and Finance, the Washington Department of Revenue, and the rest). Rates verified November 2026 against those authorities; check the current figures before filing, because states adjust brackets, deductions, and forms between seasons.

Not tax advice. Educational only — not tax advice. State tax rules, rates, and forms change; verify the figures for your state against its tax authority or a qualified tax professional before you file.