According to Cointelegraph: In a new study, Florida has been declared the “best state” for cryptocurrency taxes in the U.S., owing to its absence of state income tax and progressive crypto regulatory policies. The study, released by CoinLedger, places New York at the opposite end of the spectrum, tagging it as the “worst state” based on a 10.9% income tax and the restrictive BitLicense regulatory regime.
To reach these results, the study evaluated state income tax rates, state regulatory stance on cryptocurrency, and leadership attitudes towards blockchain technology. Close on the heels of Florida, states such as Texas and Wyoming were highlighted as being crypto tax-friendly, with their 0% state income tax and legislations allowing banks to double as crypto custodians.
Nevada, known for instituting the first ban on local governments taxing blockchain usage in 2017, and Arizona, with its flat tax of 2.5% on crypto income and exemption of airdrops from tax at the state level, followed as the 4th and 5th best states for crypto tax, respectively.
In juxtaposition, California with its sliding income tax system that hits rates from 1% to 13.3% for crypto income, positioned as the second worst state. Meanwhile, Hawaii, Massachusetts, and New Jersey, dubbed as unfriendly towards crypto taxes, follow New York and California in the rankings.
Despite the varying state-to-state regulations, the International Revenue Service (IRS) eased its crypto tax rules on Jan. 17, announcing plans to exempt businesses from reporting cryptocurrency transactions above $10,000 until it releases an updated framework.