South Carolina deducts 44% of net capital gain, North Dakota excludes 40% of eligible net long-term capital gain, and Wisconsin subtracts 30%, all under tax year 2025 instructions.

None of those figures is a tax rate: each one shrinks the gain the state taxes, which is why the rows on crypto taxes by state are worth reading before anyone multiplies anything.

Compare the exclusions before you apply a percentage

The four 2025 documents behind these rules do not mention cryptocurrency, virtual currency or digital assets. Applying general long-term capital-asset treatment to crypto held more than a year is an inference from federal treatment, not an express state ruling.

The second point is arithmetic: every percentage below attaches to an eligible net gain, after netting, and never to gross proceeds from a sale.

State Share removed Eligible gain and netting Form and line Deciding condition Tax year Authority source
South Carolina 44%, deducted Net capital gain: net long-term gain less net short-term loss SC1040 schedule of subtractions, line i Federal holding period of more than one year; SCDOR describes the gain as recognized in South Carolina 2025 South Carolina Department of Revenue, SC1040 instructions
North Dakota 40%, excluded Net long-term capital gain, including mutual fund capital gain distributions; smaller of federal Schedule D lines 15 and 16 Form ND-1, line 6 Nonresidents and part-year residents exclude only gain reportable to North Dakota; gain in line 7 or 16 is ineligible 2025 North Dakota Office of State Tax Commissioner, individual income tax booklet
Wisconsin 30%, subtracted; 60% for farm assets Capital gains and losses netted on Schedule WD Schedule SB, line 5 Assets held more than one year; net capital loss against other income capped at $3,000, or $1,500 married filing separately 2025 Wisconsin Department of Revenue, Schedule SB instructions and Publication 103

Tax year 2025 values, each from that state's own 2025 instructions (current figure at the relevant state tax authority). The shares reduce a gain base, not tax owed, and the table estimates no individual's liability.

South Carolina: net losses first, then deduct 44%

South Carolina's subtraction sits on the SC1040 schedule of subtractions, line i, and it runs off net capital gain: net long-term gain less net short-term loss, with the federal holding period of more than one year deciding what lands in the long-term column.

Installment-sale income and capital gain distributions qualify as well, once that holding period is met. Multiply the net figure by 44%, and the product is what leaves South Carolina taxable income for 2025.

SCDOR's own example shows why netting comes first.

SCDOR's example, annotated (tax year 2025)

  1. $10,000 long-term gain. This is where a reader who only saw "44%" stops.
  2. Less $3,000 long-term loss, leaving $7,000 net long-term gain.
  3. Less $5,000 short-term loss, leaving $2,000 net capital gain. The short-term loss cuts the base even though it qualified for no preference of its own.
  4. $2,000 × 44% = $880, entered on SC1040 line i. That is a subtraction from taxable income, not $880 of tax saved.
  5. Multiplying step 1 by 44% instead produces $4,400, five times the allowed subtraction.

One boundary is worth keeping in view. SCDOR's Individual Income Tax FAQs describe the deduction as net capital gain recognized in South Carolina.

That page carries no tax-year stamp and stops short of a complete resident and nonresident allocation rule, so a sale that straddles a move belongs in front of the instructions for the year in question, or in front of a licensed preparer.

The 44% will not answer a residency question.

North Dakota: exclude 40% of the eligible long-term gain

Page 13 of North Dakota's 2025 individual income tax booklet carries the worksheet, and the worksheet is the entire mechanism. Eligible federal taxable income there covers net long-term capital gain plus mutual fund capital gain distributions. You take the smaller of federal Schedule D line 15 and line 16, multiply the eligible result by 40%, and enter the exclusion on Form ND-1 line 6.

Reading only one of those two lines is the ordinary way to overstate the figure.

Residency narrows the door further. A full-year nonresident or a part-year resident may exclude only net long-term capital gain reportable to North Dakota, and gain already included in Form ND-1 line 7 or line 16 is ineligible. For someone who sold in March and left the state in August, that condition decides the outcome, not the 40%.

The booklet never asks which exchange reported the sale; it asks which Schedule D lines your federal return produced and which state the gain is reportable to.

Wisconsin: separate the 30% exclusion from the loss limits

Wisconsin splits the work across two schedules.

Gains and losses are netted on Schedule WD, and the long-term subtraction lands on Schedule SB line 5: 30% of net capital gain on assets held more than one year, or 60% where the asset is farm property.

The farm-asset percentage is not a general digital-asset exclusion.

For a Form 1 filer, the Schedule SB line 5 instructions offer a narrow shortcut: if the only federal capital gain is a mutual fund or REIT capital gain distribution and there is no Wisconsin capital loss carryover, enter 30% directly on line 5 without Schedule WD.

The loss limits are separate. Wisconsin caps a net capital loss deduction against other income at $3,000, or $1,500 for married filing separately, with no time limit on the carryforward.

Publication 103's joint-return example takes a $3,000 deduction against other income out of a $10,000 combined long-term loss carryover.

Because the state removes part of a long-term gain, Wisconsin amounts can differ from federal amounts in the sale year and in carryover years alike, so a federal total copied across is not a finished Wisconsin reconciliation.

Federal mechanics live in our guide to loss netting and harvesting at the federal level.

Selling to a related person does not reduce the general 30% exclusion. The related-person conditions and worksheet concern a separate subtraction for farm and business assets, described in Publication 103 section 3.J and Schedule SB line 26 instructions.

What the three rules have in common

All three turn on one classification: held more than one year, measured the federal way. That is where crypto records break, not at the percentage step. A state schedule wants proceeds, basis, a holding-period split and a total; a lot that arrived from another platform with no history hands you one of those.

Soften the acquisition date and the long-term column softens with it, and the exclusion follows.

If dates are missing, work through reconstruct the acquisition and sale records first; the federal holding-period math itself sits in federal short- and long-term rates.

The state calculations above remain an application of general capital-gains rules to crypto by inference.

"Does my state change anything?" checklist

  1. Fix the jurisdiction facts for each sale date and identify any move. Use the residency boundaries in the state sections above; North Dakota supplies an explicit part-year condition.
  2. Name the mechanism and tax year from the relevant state section, then open that year's instructions.
  3. Reconstruct the acquisition and sale records, reconcile proceeds against basis and split long-term from short-term totals before using a state line.
  4. Retain the acquisition and disposal evidence for every long-term lot, following the reconstruction guide.
  5. Apply that state's netting and eligibility conditions, then trace the result to its line: SC1040 line i, ND-1 line 6, Schedule SB line 5.
  6. Flag a move or a credit for tax paid elsewhere, plus any gap in your evidence, for the authority's instructions or a licensed preparer.

(I keep a plain-text note at the top of each year's folder naming the exact document a rule came from, which saves a second pass through the booklet in April.)

Similar rules elsewhere on CoinReckon

Two other states work from a date or a full deduction rather than a share.

Arizona's purchase-date rule turns on when the asset was acquired, and Missouri's 100% deduction removes qualifying long-term gain in full, with the conditions on each written up where they belong.

Arkansas, Montana and Vermont run preferences of their own whose parameters we have not filled in yet; the Arkansas, Montana and Vermont evidence rows show what is settled for each and what is still open.

Where the evidence stops

Settled for tax year 2025: the three shares, the gain bases they attach to, and the form lines, each from the state's own 2025 instructions.

Still open in this evidence set: whether all three preferences carry into 2026, Wisconsin's residency allocation detail and top marginal rate, and the outcome of the Hemschik matter at the Wisconsin Tax Appeals Commission.

One scope point matters for crypto in particular: reading four documents establishes what those documents say, not that no state crypto guidance exists anywhere.

The verdict is deliberately narrow. Compare the gain base and the eligibility conditions before you estimate anything, because that comparison is what changes the answer.

Questions before you carry the gain to a state return

What if I cannot prove when I bought my crypto?

Reconstruct the acquisition date before claiming long-term treatment.

Use the guide to reconstruct the acquisition and sale records and retain the evidence with the return; these three exclusions depend on long-term classification.

Arizona's separate acquisition cutoff does not apply here.

Does my Form 1099-DA go to my state automatically?

The form itself does not establish automatic state routing. The IRS About Form 1099-DA entry dated January 7, 2026 excludes it from the Combined Federal/State Filing Program for tax year 2025. Its 2026 status and these states' separate duties remain outside this evidence set; that does not establish an absence of reporting duties.

Does Wisconsin's exclusion change a credit for tax paid to another state?

The collected evidence supplies no credit formula. Wisconsin's 2025 Tax Update slides identify Hemschik v. Wisconsin Department of Revenue, a Tax Appeals Commission matter dated October 14, 2024, concerning a 2021 return and the credit where Wisconsin includes only 70% of the gain.

This retrieved excerpt supplies no outcome; take a live two-state credit to a licensed preparer.

Can I use these percentages for my 2026 return?

Check the 2026 documents first. This comparison uses 2025 instructions and does not establish 2026 continuation. Pull that year's SC1040 instructions, North Dakota booklet, Wisconsin schedules and Publication 103.

Your next reconciliation step

Take the six checks to the relevant 2025 state instructions. Reconcile the gain before applying the percentage, retain the holding-period evidence and use the reconstruction guide for missing dates.

For federal math only, estimate the federal tax on a sale and compare federal loss-harvesting scenarios; neither touches a state line.

A move or an other-state credit belongs with a licensed preparer.

Sources

South Carolina:

  1. South Carolina Department of Revenue, 2025 SC1040 Instructions, subtractions line i: holding period, netting order and the worked example. Tax year 2025; retrieved 2026-09-29.
  2. South Carolina Department of Revenue, Individual Income Tax FAQs: gain recognized in South Carolina, limited wording only. No tax year stated; retrieved 2026-09-29.

North Dakota:

  1. North Dakota Office of State Tax Commissioner, 2025 Individual Income Tax Booklet, page 13 and ND-1 line 6: worksheet and nonresident restriction. Tax year 2025; retrieved 2026-09-29.

Wisconsin:

  1. Wisconsin Department of Revenue, 2025 Schedule SB Instructions, line 5: Schedule WD route and the distribution-only shortcut. Tax year 2025; retrieved 2026-09-29.
  2. Wisconsin Department of Revenue, Publication 103, Reporting Capital Gains and Losses for Wisconsin: exclusions, loss limits and the separate farm and business-asset subtraction. 2025 evidence; retrieved 2026-09-29.
  3. Wisconsin Department of Revenue, 2025 Tax Update slides: Hemschik case pointer, 2021 return, case dated October 14, 2024. Retrieved 2026-09-29.

Federal reporting:

  1. Internal Revenue Service, About Form 1099-DA, Recent developments entry dated January 7, 2026: combined-program exclusion for tax year 2025. Retrieved 2026-09-29.
  2. Internal Revenue Service, Publication 1220, Section 12: program mechanism only, Rev. 5-2026. Retrieved 2026-09-29.