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Crypto & tax · WA

Washington Crypto Tax Calculator

Estimate your 2026 federal and Washington state tax on crypto capital gains, with FIFO, LIFO, or HIFO cost basis.

Cost-basis method — changes which lots are sold
Transactions4
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$
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Estimated tax owedFIFO
$1,860
short-term gains$3,000
long-term gains$8,000
short-term tax$660
long-term tax$1,200
WA state tax$0
total gains
$11,000
estimated tax
$1,860
effective rate
16.9%

Washington charges no state tax on a $10,000 crypto gain. Washington taxes long-term capital gains only above a large annual deduction, which a gain this size does not reach. Federal capital-gains tax still applies.

Washington taxes long-term capital gains under a separate regime rather than as ordinary income. Figures use 2026 Washington rules and 2026 federal rules, single filer. Holding period decides the federal rate.

Crypto capital-gains tax in Washington

Washington is the one state on this list that does reach investment profit, so treating it as entirely tax-free is misleading. Under ESSB 5096 (RCW 82.87), a 7% excise tax applies to the sale or exchange of long-term capital assets such as stocks, bonds, and business interests, above a standard deduction of $278,000 for 2025 — up from $270,000 in 2024, and adjusted annually for inflation. In 2025 the legislature added a second tier: ESSB 5813 levies an additional 2.90% on the portion of an individual's Washington capital gains exceeding $1,000,000 — again a charge on investment profit rather than wages — with the proceeds directed to the education legacy trust account. What saves most households is the exemption list: real estate is excluded outright, as are assets held in certain retirement accounts, so a home sale or a 401(k) is untouched and only a large taxable-brokerage or business-sale gain comes near the threshold. Wages themselves remain untaxed — nothing is withheld from your paycheck at the state level.

Washington is the rare no-income-tax state that still reaches investment profits: long-term capital gains above an annual deduction are taxed at 7%, with a surtax on the very largest gains. That can apply to big crypto or stock sales, though most filers fall under the threshold.

Washington levies a 7% tax on long-term capital gains above a $278,000 annual deduction (2025, indexed), plus a 2.9% surtax on taxable gains above $1 million (a 9.9% top rate, added retroactively for 2025 by SB 5813). Real estate and retirement accounts are exempt.

Common questions

Does Washington tax crypto gains?
Washington levies a 7% tax on long-term capital gains above a $278,000 annual deduction (2025, indexed), plus a 2.9% surtax on taxable gains above $1 million (a 9.9% top rate, added retroactively for 2025 by SB 5813). Real estate and retirement accounts are exempt.
How does Washington's 7% capital-gains tax work?
Washington applies 7% to long-term gains above a $278,000 annual deduction, plus a 2.9% surtax on taxable gains above $1,000,000. Because the deduction comes first, a filer whose long-term gains for the year stay under $278,000 owes Washington nothing.
How much Washington tax would a $10,000 crypto gain cost?
Nothing at the state level. Stacked on Washington's $97,500 median household income (2024), a $10,000 gain adds $0 of Washington tax — it sits well under the $278,000 deduction; the federal bill is the only one that changes.
What do I owe when I sell crypto in Washington?
Federal tax only: short-term gains at your ordinary federal rate, long-term gains at the federal 0%, 15% or 20% rates. The same $10,000 gain on top of a $97,500 income would cost roughly $495 in state tax in the typical income-taxing state.

How we calculate this

Federal lot-matching per our crypto-tax methodology, plus Washington's 2026 state treatment of capital gains. Estimates only — not tax advice.

Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 →Washington Department of Revenue — Capital gains tax →

More on Washington tax

Everyday moneyWhat lands in a Washington paycheckThe same salary split across real pay periods, with federal tax and FICA taken out and no state line at all.Everyday moneyWhy Washington takes no income taxWhat a Washington filer owes for the year when the state schedule is empty, and how the state funds itself instead.
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Estimates for general informational purposes only; not tax advice. Crypto tax rules are complex and Washington state treatment is simplified here — verify with the state Department of Revenue and a tax professional. Washington has no state income tax, so there is no state schedule to simplify — this calculator covers what comes out of your pay, not the sales and business taxes that Washington relies on instead. It also leaves out Washington's Paid Family & Medical Leave and WA Cares payroll deductions and Washington's 7% tax on long-term capital gains above $278,000, which falls on investment income rather than wages.