How is crypto taxed in Hawaii?

Hawaii crypto tax has no special rules of its own. Crypto gains and crypto income reach the state return through federal adjusted gross income, and Hawaii then applies its own rates, including a lower maximum rate for long-term capital gains. Federally, the IRS treats crypto as property, as explained in how crypto is taxed in the US.

Does Hawaii tax crypto?

Yes. Line 7 of Hawaii's 2025 resident return, Form N-11, is your federal adjusted gross income. Any gain from selling, swapping or spending crypto is already in that figure, and so is crypto received as pay or from mining and staking, which the IRS counts as ordinary income. Hawaii then makes its own additions and subtractions, none of which are specific to crypto.

The Department of Taxation's 2025 return does not mention crypto or digital assets, so as of November 2026 general income tax rules are the starting point.

What is the Hawaii capital gains tax on crypto?

Hawaii's regular income tax has 12 brackets, from 1.4% up to 11% above $325,000 for single filers. Net capital gain gets an alternative calculation. Under Section 235-51 of the Hawaii Revised Statutes, the part of taxable income made up of net capital gain is taxed at no more than 7.25%. Net capital gain broadly means long-term gains, so crypto held for more than a year can benefit, while crypto sold within a year is taxed at the regular rates.

Rates are changing. Act 24 of 2026, signed on May 21, 2026, adds a 13% top bracket from tax year 2027 for single filers over $500,000 and joint filers over $1 million. It also lowers two lower brackets to 2.5% and 5%. The 7.25% cap is in a separate subsection, and the sources reviewed do not say Act 24 changes it. Act 46 of 2024 also phases in a larger standard deduction, reaching $12,000 for single filers by 2031.

Can you buy crypto in Hawaii?

Yes. Hawaii used to require crypto companies to hold a state money transmitter license, which kept some exchanges away. The state ran a Digital Currency Innovation Lab from 2020 to study the industry. When it ended on June 30, 2024, the Division of Financial Institutions said crypto activity did not fit the state's money transmission law, so crypto companies no longer need that license. They must still follow federal rules, including anti-money laundering rules. Some services still limit features for Hawaii users, for example eToro in the US.

Crypto kiosks are another matter. A law that took effect on October 1, 2026 bans cash deposits to buy crypto at kiosks, after reported kiosk fraud losses of $3.85 million in 2025. Other states' rules are compared in where crypto ATMs are banned, and state income tax approaches are covered in do states tax crypto.

Rules differ by state and change often. Check the tax authority or a qualified professional for your own situation.