How is crypto taxed in Texas?

Crypto tax in Texas is mostly a federal matter for individuals. Texas does not tax personal income, so a resident who sells bitcoin at a profit files nothing with the state for that gain. The IRS rules still apply in full, as covered in how crypto is taxed in the US. Texas-specific crypto tax questions mainly affect businesses.

Does Texas tax crypto for individuals?

No, not through an income tax. The Texas Comptroller lists the state's personal income tax rate as 0%. Gains from selling, swapping or spending crypto, and crypto received as income, are not taxed by Texas.

They are still taxed federally. The IRS says digital assets are property, not currency. Transactions must be reported whether they produce a gain or a loss, and crypto received for goods or services is generally ordinary income. A move to or from Texas can change your state position, as outlined in do states tax crypto.

Is there a Texas crypto capital gains tax?

No. Texas has no separate capital gains tax for individuals, and with a 0% personal income tax there is no state return on which a crypto gain would be taxed. Federal capital gains rates still depend on how long you held the coin and on your income. Losses still need to be reported, which is covered in crypto losses and taxes.

What crypto taxes do Texas businesses face?

Two state taxes can come into play. The first is the franchise tax, which is charged on businesses rather than people. From 1 January 2026, businesses with annualized total revenue of $2.65 million or less do not have to pay it, the Comptroller says. In a June 2025 private letter ruling, the Comptroller treated bitcoin as intangible property for franchise tax. Receipts from selling it are sourced to the buyer's legal domicile, according to the accounting firm Aprio.

The second is sales and use tax. The state rate is 6.25%, and local areas can add up to 2%, for a maximum of 8.25%. It applies to most goods and some services. For crypto miners, a November 2024 Comptroller ruling found that hosting customer-owned mining machines was not a taxable service, but repairs to those machines were taxable, the Sales Tax Institute reported. Whether buying crypto itself carries sales tax is covered in is there sales tax on crypto.

Texas also holds crypto itself. A law signed in June 2025, SB 21, created a Texas Strategic Bitcoin Reserve held under the Comptroller's custody, National Law Review reported. That reserve does not change how residents are taxed.

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