How is crypto taxed in Indiana?

Indiana crypto tax is a two-layer flat tax. Crypto gains and crypto income are taxed once at the state rate and again at the rate of the county where you live. There are no crypto-specific rules on the income tax side, because Indiana builds on the federal approach explained in how crypto is taxed in the US.

Does Indiana tax crypto?

Yes. Indiana Code 6-3-1-3.5 says adjusted gross income for individuals is federal adjusted gross income under the Internal Revenue Code, modified by a list of Indiana additions and subtractions. None of those modifications concern crypto or capital gains in particular.

So whatever counts federally carries over. The IRS treats digital assets as property. Selling coins for dollars, trading one token for another, paying for goods and receiving crypto for work, mining or staking are taxable events. Buying and holding is not, and neither is moving coins between your own wallets unless a fee is paid in crypto.

What is the Indiana flat tax on crypto?

Indiana Code 6-3-2-1 sets one rate for all income. It was 3.05% for 2024 and 3% for 2025. The Department of Revenue lists 2.95% for 2026 and 2.9% for 2027, and the statute keeps 2.9% through 2029. Further cuts of 0.05 points are possible from 2030 if revenue growth meets set tests.

Because the rate is flat, a short-term trade and a gain on coins held for years are taxed the same. Losses that reduce federal adjusted gross income also reduce the Indiana figure, as covered in crypto losses and taxes.

How does Indiana county tax apply to crypto gains?

County tax is charged on the same income. The 2025 Schedule CT-40 tells full-year residents to use the rate of the county where they lived on January 1, 2025. Rates on the schedule run from 0.5% in Porter County to 3% in Randolph County. The department says county rates can change in January and October.

As an example, a resident of a county with a 1.5% rate would pay 2.95% plus 1.5% on a 2026 crypto gain at the Indiana level.

What are Indiana's crypto laws?

Two 2026 laws stand out. House Bill 1042, signed on March 3, 2026, bars state and local authorities from imposing special taxes or fees on using crypto to pay for lawful goods and services, or on people who keep assets in self-hosted wallets, The Block reported. It also requires some public savings and retirement plans to offer a crypto option by July 1, 2027. See can you hold crypto in an IRA or 401(k).

House Bill 1116, signed on March 9, 2026, banned crypto kiosks with immediate effect. Other bans are listed in where are crypto ATMs banned.

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