Vermont taxes cryptocurrency at progressive rates from 3.35% to 8.75%. The state follows federal guidance on crypto treatment. Vermont's high top rate makes it unfavorable for significant crypto gains. However, Vermont has been somewhat progressive on blockchain — passing legislation enabling blockchain-based business registrations.
Tax Rates
State Income Tax: 3.35%–8.75%
Capital Gains: Taxed as income (3.35%–8.75%)
Key Facts for Crypto Investors
State income tax: 3.35%–8.75%
Capital gains taxed as ordinary income
Higher rates less favorable for crypto
Follows federal IRS guidance
Crypto Mining Tax Treatment
Mining income taxed at rates up to 8.75%. Vermont's high electricity costs and tax rates make mining economically challenging.
Staking Rewards Tax Treatment
Staking rewards are ordinary income at rates up to 8.75%.
Tax Planning Strategies
Vermont's high rates demand careful tax planning. Tax-loss harvesting and long-term holding strategies help manage the burden.
Frequently Asked Questions
What is Vermont's crypto tax rate?
Vermont taxes crypto gains as ordinary income at 3.35% to 8.75%.
Does Vermont have blockchain-specific laws?
Yes — Vermont passed legislation enabling blockchain-based business registrations (BBLLCs), though the impact on individual investors is minimal.
This information is for educational purposes only and does not constitute tax advice. Cryptocurrency tax laws change frequently. Consult a qualified tax professional for advice specific to your situation.