How is crypto taxed in Virginia?

Virginia crypto tax follows the federal return. The IRS treats crypto as property, so selling, swapping or spending it can create a capital gain, and crypto earned as pay or rewards is income. Virginia then taxes that amount through its regular income tax. The federal rules are in how crypto is taxed in the US.

Does Virginia tax crypto?

Yes. The Department of Taxation's 2025 Form 760 instructions say line 1 is your federal adjusted gross income, taken from your federal return. Any crypto gain on Schedule D and any crypto income, such as staking or mining rewards, is already in that figure. The instructions do not set out a crypto-specific rule.

The IRS describes the taxable events. Trading one coin for another, cashing out to dollars, paying for goods with crypto and receiving crypto for work all count. Buying crypto with dollars and holding it does not, and moving coins between wallets you control is generally not reportable unless a fee is paid in crypto.

Virginia's conformity to the federal tax code is fixed at December 31, 2025, according to the instructions. Later federal changes do not apply automatically, so a new federal crypto rule could need its own Virginia adjustment.

What is the Virginia capital gains tax on crypto?

Virginia has no separate capital gains rate. Gains are taxed at the same rates as wages, whether you held the coins for a week or for years. The department's rate table is:

• 2% on the first $3,000 of taxable income
• 3% from $3,000 to $5,000
• 5% from $5,000 to $17,000
• 5.75% on income above $17,000

Because the top rate begins at $17,000, most crypto gains end up taxed at 5.75%. For tax years 2025 and 2026, the standard deduction is $8,750 for single filers and $17,500 for married couples filing jointly. The instructions say it is scheduled to fall to $3,000 and $6,000 after 2026 unless the law changes.

Crypto losses that reduce federal adjusted gross income also reduce the Virginia starting figure. How losses work is covered in crypto losses and taxes.

What are the crypto laws in VA?

The newest is House Bill 665, signed on April 13, 2026. Orrick reports that from July 1, 2027, crypto kiosk operators will need a license from the State Corporation Commission. New users will be limited to $2,000 per transaction, existing users to $5,000, and all users to $10,000 a month. Fees will be capped at 18% per transaction. Fee caps in other states are compared in how much are bitcoin ATM fees.

None of this alters income tax. Brokers still report sales to the IRS on Form 1099-DA, and Virginia picks up the result. Other states are compared in do states tax crypto.

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