How is crypto taxed in Missouri?

Missouri crypto tax is now unusual among states that have an income tax. Since House Bill 594, individuals can subtract all of the capital gains they report federally when working out Missouri adjusted gross income, and the Department of Revenue lists cryptocurrency among the covered assets. Federal tax still applies, as explained in how crypto is taxed in the US.

Does Missouri tax crypto?

It depends on the type of crypto income. The IRS treats crypto as property, so selling it, swapping it for another coin or spending it creates a capital gain or loss. Those gains are what Missouri now lets individuals subtract.

Crypto that arrives as income is different. Under federal rules, crypto received as wages, as payment for services, or from mining, staking or certain airdrops is ordinary income. The capital gains subtraction does not reach it, so it stays in Missouri income and is taxed at the state's rates. The department put the top individual rate at 4.7% for 2025. So "Missouri has no crypto tax" is only partly true.

How does the Missouri capital gains deduction for 2025 work?

Governor Mike Kehoe signed HB 594 in 2025. In an August 26, 2025 release, the department said Missouri had become the first state to fully exempt capital gains for individual filers, effective January 1, 2025. It said the subtraction covers both short-term and long-term gains from stocks, real estate and cryptocurrency.

The subtraction is claimed on Form MO-A, filed with Form MO-1040, and the 2025 Form MO-A has a capital gain line for each spouse. It applies only to capital gains reported on the federal return, and capital losses do not qualify. One answer in the department's FAQ refers to 2026 returns as the first claim year, so checking the current instructions for the year you file is worthwhile. KCTV5 noted the subtraction covers taxable brokerage accounts, not IRAs or 401(k)s.

Who cannot use the Missouri crypto capital gains subtraction?

The department says it is only for individuals taxed under section 143.011 of Missouri law. Trusts and fiduciaries are not eligible, and neither are pass-through entities that elect the state's pass-through entity tax. Corporations can subtract capital gains only after the top individual rate falls to 4.5% or lower, starting the following tax year, so they were not eligible for 2025.

Is there sales tax on crypto in Missouri?

Bloomberg Tax's state survey lists Missouri as treating bitcoin as nontaxable intangible property for sales tax. Paying for goods with crypto is still a disposal for federal tax purposes, which can create a gain or loss. For wider comparisons, see do states tax crypto and is there sales tax on crypto.

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