Crypto Tax CPAs in Washington

Washington Crypto Tax Notes

Washington has no state income tax, so crypto capital gains are not taxed at the state level. However, Washington does levy a 7% excise tax on certain long-term capital gains above a threshold — and crypto is included.

Key rates and rules

• No state income tax: Wages and business income are not taxed at the state level
• 7% capital gains excise tax: Applies to long-term gains above approximately $270,000 (indexed annually)
• Short-term gains: Not subject to the state excise tax (taxed federally only)

Enforcement notes

• Form 1099-DA: All US exchanges report activity to the IRS starting 2026
• Digital asset declaration: Washington requires disclosure of digital assets in certain contexts