A finished federal Schedule D can leave a separate Washington filing task.

Washington's capital gains excise reaches long-term gains allocated to the state after deductions, including the $278,000 standard deduction for tax year 2025 (Washington DOR, Capital gains tax, retrieved September 29, 2026).

Mechanism-by-mechanism context for the rest of the country sits in crypto taxes by state.

What is different in Washington

Start with $278,000.

That is the Washington standard deduction for tax year 2025, and it applies once per individual, married couple or domestic partnership (Washington DOR, Capital gains tax, retrieved September 29, 2026).

The tax itself is an excise on sales or exchanges of long-term capital assets. ESSB 5096 (2021) created it, chapter 82.87 RCW carries it, and DOR administers it under WAC 458-20-300 and 458-20-301. The excise took effect January 1, 2022; earlier sales are outside its scope (DOR, Rule-making agenda, retrieved September 29, 2026).

The asset must have been held more than one year, and the gain must be allocated to Washington. Only individuals owe it, including individuals owning pass-through or disregarded entities; the entity itself is not the taxpayer (DOR, Capital gains tax).

Exemptions cover real estate and privately held entity interests directly attributable to real estate owned directly by the entity, assets in certain retirement accounts including 401(k), IRA and Roth IRA holdings, condemnation, certain livestock, business assets to the extent depreciable or qualifying for Section 179 expensing, timber and related timber REIT distributions, commercial fishing privileges, and franchised auto-dealership goodwill (DOR, Capital gains tax).

The DOR FAQ also excludes qualified small business stock gain excluded federally under Section 1202, but ignores federal Qualified Opportunity Fund deferrals.

DOR lists deductions for qualifying family-owned small-business gain and charitable donations alongside the standard deduction (retrieved September 29, 2026).

Does my state change anything? Six records to pull

  1. Tax year of each sale. Match it to the right row of the figures table below; the deduction changed between 2024 and 2025.
  2. Acquisition and disposal dates per lot. More than one year held, or it is outside this excise.
  3. Where you were domiciled on each disposal date. Not where the exchange is, not where your mail goes.
  4. Allocation and deductions, to get from federal long-term gain to taxable Washington gain.
  5. The separate state return plus a copy of the same-year federal return. See the filing section.
  6. Your deadline dates and your open questions, written down before April.

This organizes records. It does not decide your domicile.

Rates, thresholds and deductions

From tax year 2025, ESSB 5813, Chapter 421, Laws of 2025 sets 7% on the first $1,000,000 of taxable Washington capital gains.

The excess bears 9.9%, comprising 7% plus 2.9% (DOR, New tiered rates, retrieved September 29, 2026).

Tax years 2022 through 2024 ran at a flat 7%.

The first tiered return, for tax year 2025, is due May 1, 2026 under DOR's one-time deadline extension.

The rate base is taxable Washington capital gains, meaning what is left after allocation and deductions. Not gross proceeds, and not federal AGI.

Sale proceeds alone cannot tell you whether the $1,000,000 boundary applies.

The deduction adjusts annually for inflation: $270,000 for 2024, $278,000 for 2025 (current figure at Washington Department of Revenue).

The 2025 charitable deduction covers donations above $278,000 and is capped at $111,000, against a $108,000 cap for 2024 (DOR, Capital gains tax).

Figure Tax year Authority document Evidence status
Standard deduction $278,000 2025 DOR, Capital gains tax Published amount, read September 29, 2026
First tier: 7% through $1,000,000 of taxable Washington gains 2025 DOR special notice, New tiered rates Published rate
Upper tier: 9.9% on the amount above $1,000,000 (7% plus 2.9%) 2025 DOR special notice, New tiered rates Published rate
Charitable deduction: donations above $278,000, capped at $111,000 2025 DOR, Capital gains tax Published amounts
Standard deduction $270,000; charitable cap $108,000 2024 DOR, Capital gains tax Historical, kept for comparison only
Standard deduction 2026 DOR, Capital gains tax No amount supplied in the September 29, 2026 extracts

Apply the tiers to taxable Washington gains (tax year 2025)

Let T be taxable Washington capital gains, after allocation and after the deductions you qualify for. For any T of zero or more, before credits:

Tax before credits: 7% × min(T, $1,000,000) + 9.9% × max(T - $1,000,000, 0).

At the boundary itself, where T is exactly $1,000,000, the first-tier piece works out to $70,000. That is our arithmetic from the published DOR rate, not a DOR example, and not your tax. The formula also stops two errors: applying 9.9% to the whole gain once you cross the line, and subtracting the standard deduction a second time when it is already baked into T.

How a crypto sale reaches the Washington return

Washington has a separate capital gains excise tax return, filed electronically through My DOR or DOR-listed preparation software. Use the return's name; the cited pages supply no form number (DOR, Capital gains tax, retrieved September 29, 2026).

The return starts where the federal one ended. You take the federal long-term capital gain, the kind of figure that lands on Schedule D, then apply Washington's allocation, exemptions and deductions to get to the rate base. A copy of the same-year federal return goes in with it.

Individuals owing the tax must file. So must anyone requesting an extension or making a payment, even if no tax is ultimately due (DOR, Capital gains tax).

Credits have conditions: legally imposed income or excise tax paid to another jurisdiction on gains from assets within that jurisdiction may qualify to the extent those gains enter Washington's calculation.

From tax year 2025, a capital gains tax credit covers B&O tax paid on the same taxable sale or exchange (DOR, Capital gains tax).

Filing calendar

The usual return deadline follows the federal income tax return, typically April 15, adjusted for a weekend or holiday.

For tax year 2025 only, DOR's March 25, 2026 notice moved all Washington capital gains returns and payments to May 1, 2026.

This state relief applies beyond federal storm-extension eligibility.

Request a Washington filing extension in My DOR by May 1, 2026 for tax year 2025.

You must have received a federal filing extension.

The extended state filing deadline is October 15, 2026; payment remains due May 1, 2026 (DOR, March 25 notice, official indexed text checked September 30, 2026; direct access returned 403).

Keep filing and payment deadlines separate. May 1 relief applies only to tax year 2025; the tax-year-2026 deadline is unchanged.

Prepayment opens with tax year 2026: up to six months before the due date, starting October 15, 2026 for the April 15, 2027 return (DOR FAQ, retrieved September 29, 2026). The federal calendar is separate: federal deadlines and estimated payments.

If you moved during the year

For this excise, crypto is intangible property.

Its gain is allocated to Washington when the individual is domiciled there at the sale or exchange (DOR FAQ, retrieved September 29, 2026).

Tangible property follows separate location-based rules.

Part-year residents follow that realization test; intangible gains realized without Washington domicile fall outside Washington allocation. An address change alone does not establish the domicile needed to apply the rule.

Allocation is one question.

Proving domicile is a different one. DOR lists interim guidance on its capital gains page, but the September 29 extracts do not include its text. This page supplies no day-count test or move-day safe harbor.

Where two jurisdictions tax the same gain, the credit described above is the mechanism for the overlap.

What Washington says about crypto by name

DOR's FAQ page takes the question head on, with a cryptocurrency entry.

Its answer: the excise generally applies to cryptocurrency held more than one year when the individual was domiciled in Washington at the time of the sale or exchange, and cryptocurrency is treated as intangible property (DOR, Frequently asked questions about Washington's capital gains tax, retrieved September 29, 2026; that page supplies no publication date).

Check those conditions against your transaction dates (a disposal date matters here).

Form 1099-DA and the state

The IRS About Form 1099-DA development entry dated January 7, 2026 excludes the form from the Combined Federal/State Filing program for tax year 2025.

Washington is absent from the retrieved Table 1 in Publication 1220, revision May 2026; that research covered a PDF section.

Those extracts establish no Washington duty tied to the form and do not establish that none exists. CF/SF is only one data route; this evidence does not establish eligibility for later tax years.

Check the tax year and reporting scope

  • The 2026 standard deduction. The September 29, 2026 DOR extracts supply no amount for that year. Use the authority's figure for your return year rather than projecting an inflation adjustment.
  • Domicile proof. The interim DOR guidance is listed on the authority page; its text is not in hand.
  • Future income-tax interaction. DOR's 2026 Legislative Report, page 11, places ESSB 6346's income tax in income earned in 2028 (collected in 2029) onward, with a capital-gains addback and credit. This does not apply to TY2025/26; later-year filing instructions remain separate.
  • Whether the form becomes CF/SF eligible for tax year 2026 or later.

The 2025 tiers and long-term-only scope are established by the DOR documents cited above.

Bottom line

Work it in order.

Identify the long-term disposals allocated to Washington, apply the correct tax year's deduction, run the tiers on what survives, then file the separate state return with the federal copy and pay by May 1, 2026 for tax year 2025.

A qualifying filing extension moves the return to October 15, 2026, but does not defer that payment.

Large gains, changed domicile, entity ownership or overlapping jurisdictions warrant help from a qualified tax professional.

Questions

Does a coin-for-coin swap count as an exchange?

Yes, it can reach the excise when the asset was held more than one year and the gain is allocated to Washington. The DOR FAQ uses sale or exchange; that includes exchanging coins rather than continuing to hold them. Apply the deduction and exemption conditions too.

Does the deduction double for a married couple?

No. The $278,000 standard deduction for tax year 2025 is available once to an individual, married couple or domestic partnership. Joint filing does not double it (Washington DOR, Capital gains tax).

Will the software that made my federal return file the Washington return too?

Ask your provider whether it supports the Washington capital gains excise return. DOR lists preparation software alongside My DOR, without establishing any particular vendor's capability in these extracts. The separate state return and same-year federal copy remain the required deliverables.

Does this excise also settle the tax on my staking or mining income?

This page does not establish Washington's treatment of staking or mining receipt income. Its evidence covers the long-term capital gains excise; that scope does not create an exemption for receipt income or business activity.

For the federal side of a disposal, see federal short- and long-term rates.

Two other states stack a layer on the same federal gain by different machinery: Massachusetts' surtax and Minnesota's investment income tax.

If you need the federal number first, estimate the federal tax on a sale does that and only that.

Gather your sale dates, domicile records and federal return before checking the Washington filing requirements.

Sources

  1. Washington DOR, Capital gains tax - deductions, exemptions, filing and credits; retrieved September 29, 2026. Figures labeled 2024 and 2025 individually.
  2. Washington DOR, New tiered rates for Washington's capital gains tax - ESSB 5813 and the 2025 tiers; retrieved September 29, 2026.
  3. Washington DOR, Frequently asked questions about Washington's capital gains tax - cryptocurrency, domicile, the return and prepayment; retrieved September 29, 2026. No publication date on the page.
  4. Washington DOR, Rule-making agenda - capital gains administration rules and January 1, 2022 effective date; retrieved September 29, 2026. Credit timing is sourced to Capital gains tax above.
  5. IRS, About Form 1099-DA - development entry dated January 7, 2026 on the tax-year-2025 CF/SF exclusion; retrieved September 30, 2026.
  6. IRS, Publication 1220, revision May 2026, Section 12 and Table 1 - limited to the cited section; retrieved September 30, 2026.
  7. Washington DOR, Capital Gains Excise Tax returns due date moved to May 1, 2026, March 25, 2026 - one-time tax-year-2025 filing/payment and extension-request deadlines; official indexed text checked September 30, 2026, direct access returned 403. The extended filing deadline is October 15, 2026 without deferring payment.
  8. Washington DOR, 2026 Legislative Report, page 11, ESSB 6346 - future-law scope only; official indexed text checked September 30, 2026, direct PDF access failed.