- Short-term gains (held one year or less): 8.5%.
- Long-term gains (held more than one year): 5%.
- 4% surtax on taxable income above $1,083,150 (2025) and $1,107,750 (2026).
- Staking and other crypto income are taxed as ordinary income at 5%.
- Massachusetts has its own loss rules, which differ from the federal $3,000 rule.
How Massachusetts Taxes Crypto
Massachusetts splits income into parts with different rates. Wages and most ordinary income are taxed at 5%. Short-term capital gains are taxed at 8.5% for tax years from 2023. Long-term capital gains are taxed at 5%. The Massachusetts DOR tax rates page lists the current rates.
So Massachusetts, like the IRS, rewards holding more than a year. That's unusual: most states tax every gain at one rate.
Massachusetts Crypto Tax Calculator (2026)
Free crypto tax calculator for Massachusetts: estimate the federal capital gains tax and Massachusetts state tax on a crypto sale, using 2026 tax brackets.
Example
Bought crypto for $5,000 and sold it for $8,000 after holding it more than a year. Single filer, $60,000 income: $3,000 long-term gain, estimated federal tax about $0 because the whole gain falls in the 0% long-term bracket (2026 brackets). Massachusetts adds about $150.
Enter your own numbers and press "Calculate my crypto tax". Nothing you type leaves your browser.
Estimate only. Not tax advice.
How to report a crypto sale on Form 8949 →How this calculator works, with worked examples →
Massachusetts Crypto Tax Rates
| Income type | Rate | Plus surtax? |
|---|---|---|
| Short-term crypto gains | 8.5% | 4% on taxable income above the threshold |
| Long-term crypto gains | 5% | 4% on taxable income above the threshold |
| Staking, mining, and airdrop income; crypto pay | 5% | 4% on taxable income above the threshold |
| Long-term gains on collectibles (may include some NFTs) | 12% | 4% on taxable income above the threshold |
Surtax threshold: $1,083,150 for 2025 and $1,107,750 for 2026, adjusted each year. See Massachusetts 4% surtax.
Worked Examples
Example 1: a $10,000 gain, held 8 months vs 18 months
- Held 8 months: Massachusetts tax is 8.5% = $850.
- Held 18 months: Massachusetts tax is 5% = $500.
Waiting past one year saves $350 in state tax, on top of the federal saving from moving to the 0%, 15%, or 20% rates.
Example 2: a large sale that triggers the surtax
In 2026 a single filer has $400,000 of wages and sells coins held for years at a $1,000,000 gain. Total taxable income is about $1.4 million, which is roughly $292,000 over the $1,107,750 threshold. Massachusetts tax is about $70,000 (5% × $1.4M), plus about $11,700 of surtax (4% × $292,000). Spreading the sale over two tax years could keep income under the threshold.
Losses in Massachusetts
Massachusetts has its own rules for netting short-term and long-term gains and losses, and for how much of a net loss can reduce other income. They aren't the same as the federal $3,000 rule. Tax software usually handles this on Massachusetts Schedule B and Schedule D, but check the carryover figures if you have losses from earlier years.
How to File
- Complete your federal Form 8949 and Schedule D.
- File Massachusetts Form 1. Short-term gains go on Schedule B and long-term gains on Schedule D.
- Calculate the 4% surtax if taxable income is over the year's threshold.
- Make estimated payments if a large gain leaves you under-withheld. The surtax often catches people who don't.
Federal + Massachusetts Combined Crypto Tax Rate
The rate that matters is the combined rate on your next dollar of crypto gain: federal plus state. The table shows approximate 2026 rates for a single filer at two income levels. Massachusetts taxes short-term gains at 8.5% and long-term gains at 5%; the 4% surtax starts far above these incomes.
| Taxable income (single) | Short-term gain (held ≤ 1 year) | Long-term gain (held > 1 year) |
|---|---|---|
| $60,000 | 30.5% | 20% |
| $250,000 | 44.3% | 23.8% |
Federal: 22% / 15% at $60,000, and 32% / 15% plus the 3.8% Net Investment Income Tax at $250,000, from the IRS 2026 brackets. Marginal rates only. Your average rate on the whole gain can be lower. See our federal crypto tax guide for the full brackets.
Massachusetts Crypto Tax FAQ
What is the Massachusetts tax rate on crypto?
Massachusetts taxes short-term crypto gains (held one year or less) at 8.5% and long-term gains at 5%. Crypto received as income is taxed at 5%. A 4% surtax applies to taxable income above $1,107,750 for 2026.
Does the Massachusetts millionaires tax apply to crypto gains?
Yes. The 4% surtax applies to taxable income above the annual threshold, and capital gains, including crypto, count toward it. A single large sale can push income over the threshold for that year.
Are NFTs taxed at the collectibles rate in Massachusetts?
Possibly. Long-term gains on collectibles are taxed at 12% in Massachusetts, and an NFT that represents a collectible, such as art, may be treated as one. Ordinary cryptocurrencies aren't collectibles.
What is the combined federal and Massachusetts tax rate on crypto?
For a single filer with $60,000 of taxable income, the combined federal and Massachusetts rate on additional crypto gains is about 30.5% short-term and 20% long-term in 2026. At $250,000, including the 3.8% Net Investment Income Tax, it is about 44.3% short-term and 23.8% long-term.
Sources
Written by Asad Shaikh
Founder of StartCryptoNow. Nine years researching, trading, and teaching crypto; BSCS from Virtual University of Pakistan. Every tax figure is checked against IRS and state revenue publications. Our editorial policy.