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Crypto taxes in New York (2026): federal + state basics

New York taxes crypto gains as ordinary income at up to 10.9% — and New York City residents stack a second city tax on the same Form IT-201, for a combined top rate of 14.776%.

Last reviewed: November 4, 2026 · Reviewed by the CryptoTaxAI editorial team · Sources

Short answer. Yes, New York taxes crypto gains as ordinary income — no lower long-term rate — at state rates of 3.9% to 10.9% for 2026. New York City residents pay a second, city income tax of 3.078% to 3.876% on the same return, taking the combined top rate to 14.776%. Residents report on Form IT-201, which starts from federal adjusted gross income.

Who has to file in New York

Full-year New York State residents file Form IT-201 and owe state tax on worldwide income, including all crypto gains. New York City residents owe the city tax on top, computed on the same IT-201 — there is no separate city return. Part-year residents and nonresidents with New York-source income file Form IT-203. Crypto is intangible property, so a nonresident's crypto gains are generally not New York-source; but if you lived in New York when you sold, the gain is New York's to tax, and the state is aggressive about residency audits for people who claim to have moved.

The federal layer comes first

Every state discussion starts with the federal return, because the IRS decides what counts as a taxable event in the first place. Selling crypto for dollars, trading one coin for another, or spending crypto is a disposition: you compute gain or loss as proceeds minus cost basis, and the one-year holding line separates short-term from long-term results. Staking and mining rewards are ordinary income at fair market value when you gain dominion and control over them. Federal reporting runs through Form 8949 and Schedule D, summarized in our how-to-report guide, and the rate tables live in the 2026 capital gains guide. New York starts its return from that federal AGI figure, so your federal gain computation carries straight into the state return before New York's own modifications.

How New York taxes crypto

New York treats crypto gains as ordinary income. The state offers no preferential rate for long-term gains: a five-year hold and a five-day hold face the same rate schedule. The return begins with federal adjusted gross income (IT-201, line 19 pulls your federal AGI), so the gain you computed federally is already inside the New York base; New York additions and subtractions (Form IT-225) rarely change a typical crypto result.

The defining feature is the layer underneath. New York City levies its own resident income tax, collected by the state on the same Form IT-201. City rates run 3.078% to 3.876%, and the top city rate starts at just $50,000 of taxable income for single filers — so most working city residents pay the top city rate on a crypto gain, on top of the state rate. Yonkers residents pay a smaller resident surcharge instead.

For 2026, the state's five lowest bracket rates were each cut by 0.1 percentage point under the FY2026 budget (the bottom rate is now 3.9%), while the three high-income brackets — 9.65%, 10.3%, and 10.9% — remain in place, with the 10.9% rate applying only above $25 million of taxable income.

2026 New York rates at a glance

Income typeNew York treatment
Short-term capital gainsOrdinary income — graduated 3.9% to 10.9% (2026)
Long-term capital gainsOrdinary income — same schedule (no preference)
Common upper-middle bracket6.85% (single: $215,400 to $1,077,550)
High-income brackets9.65% over $1,077,550 · 10.3% over $5,000,000 · 10.9% over $25,000,000
New York City resident tax+3.078% to +3.876% (top rate over $50,000 single)
Staking, mining, airdropsOrdinary income at the same state (and city) rates

New York State rates, single filers, tax year 2026. City rates are for NYC residents only and are computed on the same Form IT-201. Marginal rates apply only within each band.

Where crypto lands on the New York return

File Form IT-201 (residents) or Form IT-203 (part-year/nonresident). The form starts from your federal adjusted gross income, so crypto gains arrive embedded in that figure rather than on a separate state line; New York modifications go on Form IT-225 when they apply. NYC residents compute the city tax in the dedicated section of the same IT-201. Source documents (federal Form 8949 and Schedule D) should match what you filed federally.

New York-specific gotchas

  • The city layer is the real story. A New York City resident's combined top rate is 14.776% on ordinary income — state 10.9% plus city 3.876% — and the city's top bracket starts at only $50,000 (single), so it is not just a rich person's problem.
  • Tax benefit recapture. If your New York AGI exceeds $107,650, a supplemental recapture tax phases out the benefit of the lower brackets — your effective marginal rate on a gain can be higher than the bracket printed in the table.
  • Residency is audited hard. Selling a large position right after claiming a move to Florida or Texas is a classic New York audit trigger. The state counts days, homes, and ties — the sale date relative to a genuine domicile change decides who taxes the gain.
  • No long-term preference. Holding period matters for your federal bill only; New York taxes short- and long-term gains identically.

What to do: New York checklist

  1. Pull your records together. Export every exchange and wallet history and save any Form 1099-DA you received — brokers report proceeds for 2025 sales, and the basis box may be blank or wrong.
  2. Reconcile before you compute. Run each 1099-DA through the free 1099-DA reconciler so the proceeds on the form match your own basis records before anything reaches a return.
  3. Finish the federal numbers first. Use the crypto tax calculator and the 2026 capital gains guide to get your short-term and long-term totals — {state} starts from them.
  4. Drop the result onto Form IT-201. Your federal AGI carries the gain in; if you are a city resident, complete the New York City section of the same form — do not look for a separate city return.
  5. Check estimates and deadlines. A large one-off gain can require estimated payments during the year, not just a balance due in April — see the estimated taxes guide.
  6. Keep the file. Transaction records, wallet addresses, and basis elections should be kept for years after filing; our record-keeping guide lists what to save.

Frequently asked questions

Yes. New York taxes crypto gains as ordinary income at graduated state rates of 3.9% to 10.9% for 2026, with no lower rate for long-term gains. Staking and mining income are ordinary income too.
Yes. NYC residents pay a city income tax of 3.078% to 3.876% on top of the state tax, computed on the same Form IT-201. The combined top rate reaches 14.776%, and the top city rate starts at $50,000 of taxable income for single filers.
Your broker sends Form 1099-DA to the IRS and to you, not directly to New York. But Form IT-201 starts from your federal AGI, New York receives federal return information under IRS data-sharing, and residency and income matching are audit priorities — keep state and federal figures consistent.
Generally, the state where you were resident when you sold. Part-year residents file Form IT-203 and allocate income between the two periods. Expect New York to scrutinize moves that happen right before a large sale.

Sources & verification

Rates verified November 2026 against the New York State Department of Taxation and Finance (tax.ny.gov); check the current figures again before filing, because states adjust brackets and forms between seasons.

Not tax advice. Educational only — not tax advice. State tax rules, rates, and forms change; verify the figures on this page against the New York State Department of Taxation and Finance (tax.ny.gov) or a qualified tax professional before you file.

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