Does Florida have state income tax on cryptocurrency?

No. Florida has no personal income tax, including no tax on cryptocurrency gains. Florida's constitution prohibits a state personal income tax. However, federal taxes still apply to all crypto gains.

How much can I save by moving to Florida for crypto taxes?

Florida residents can save 10-13% on crypto gains vs. high-tax states. On a $1 million gain: $133,000 saved vs. California (13.3%), $109,000 vs. New York (10.9%), $107,500 vs. New Jersey (10.75%).

When should I sell crypto after moving to Florida?

After properly establishing Florida domicile—not before. Gains realized while a resident of your former state are taxable by that state regardless of where you live when filing. High-tax states aggressively audit departing residents.

Florida Crypto Tax Services

Florida is one of nine states with no personal income tax—including no tax on cryptocurrency gains. For crypto investors with significant holdings, Florida residency can mean savings of 10-13% compared to high-tax states. This guide covers Florida's tax advantages, how to properly establish residency, and your federal compliance requirements for 2025.

Florida Crypto Tax: Key Facts

Florida offers significant advantages for cryptocurrency investors, but federal obligations remain. Here are the essential facts:

No State Income Tax: Florida does not tax personal income including cryptocurrency gains
Constitutional Protection: Florida's constitution prohibits a state personal income tax
Federal Tax Applies: All crypto gains are subject to federal income tax
Potential Savings: 10-13% savings versus California, New York, or New Jersey
Residency Matters: Gains realized before establishing Florida residency are taxable by your former state
No Sales Tax on Crypto: Purchasing cryptocurrency is not subject to Florida sales tax

The Sunshine State Advantage: No State Income Tax on Crypto Gains

Florida's prominence in the crypto world continues to grow. With no personal income tax, Miami has become a hub for crypto businesses and investors seeking favorable tax treatment. On a $1 million crypto gain, Florida residency saves:

vs. California (13.3%): $133,000 in state tax
vs. New York (10.9%): $109,000 in state tax
vs. New Jersey (10.75%): $107,500 in state tax

Crypto-Friendly Regulation

Florida has enacted legislation easing cryptocurrency regulation. CS/HB 273 exempts peer-to-peer and principal-to-principal crypto transactions from money transmitter licensing requirements, making the state attractive for crypto businesses and individuals.

At Monaco CPA, we serve two groups of Florida crypto clients: current Florida residents needing specialized crypto tax expertise, and investors considering or executing a move to Florida to reduce their tax burden. Both groups face unique challenges requiring careful planning.

What Florida Residents Still Owe

No state income tax doesn't mean no taxes. Florida crypto investors must comply with all federal tax obligations.

Federal Income Tax

2025 Federal Compliance Requirements

Revenue Procedure 2024-28: Wallet-by-wallet cost basis tracking effective January 1, 2025
Form 1099-DA: Custodial brokers report gross proceeds for 2025 transactions; cost basis mandatory for assets acquired after January 1, 2026
Form 8949: Required for reporting all crypto sales and exchanges
$3,000 Capital Loss Limit: Federal limit on deducting capital losses against ordinary income with unlimited carryforward

Moving to Florida: Establishing Residency Properly

If relocating from a high-tax state, the move must be executed carefully. Your former state—especially New York, California, or New Jersey—will scrutinize your departure and may claim you remain a resident for tax purposes.

Steps to Establish Florida Residency

Physical Presence: Actually move to Florida and spend the majority of your time in your new home
Driver's License: Obtain a Florida driver's license and surrender your old state license
Voter Registration: Register to vote in Florida
Vehicle Registration: Register your vehicles in Florida
Professional Relationships: Establish Florida-based doctors, dentists, attorneys, and accountants
Banking: Update bank and brokerage addresses to Florida
Florida Declaration of Domicile: File this document with your Florida county clerk to formally declare Florida as your permanent home

What Your Former State Will Examine

High-tax states conduct residency audits on departed taxpayers with significant income. They examine:

Where you spent each day of the year (day counts)
Location of your spouse and dependents
Where your belongings are—furniture, art, personal items
Business connections maintained in the old state
Social connections—club memberships, religious organizations
Credit card and cell phone usage patterns

Timing Your Crypto Sales

Critical: Gains realized while you were a resident of your old state are taxable by that state, regardless of where you live when you file. If you're moving to Florida to save taxes on crypto gains:

Complete your move and establish Florida residency first
Document your new residency thoroughly
Then realize your gains as a Florida resident

Taxable Crypto Events

Understanding which events trigger federal taxes is essential for Florida crypto investors.

Taxable Events

Selling crypto for USD or other fiat currency
Trading one cryptocurrency for another
Using crypto to purchase goods or services
Receiving crypto as payment (ordinary income at FMV)
Mining rewards when received (ordinary income)
Staking rewards when you have dominion and control
Airdrops and hard forks when received

Non-Taxable Events

Buying crypto with USD
Transferring crypto between your own wallets
Gifting crypto (gift tax rules may apply for large gifts)
Donating crypto to qualified charities

Florida Sales Tax Treatment

Florida has a 6% state sales tax (up to 8.5% with local taxes) but favorable treatment for cryptocurrency:

Crypto Purchases: Buying cryptocurrency is not subject to Florida sales tax
Crypto as Payment: When crypto is used to buy goods, sales tax applies to the goods' value (same as cash payment)
Intangible Property: Cryptocurrency is classified as intangible property, not tangible personal property

Tax Planning for Florida Residents

Even without state income tax, federal planning strategies can significantly reduce your crypto tax burden.

Tax-Loss Harvesting

Cryptocurrency is not subject to wash sale rules under current federal law. You can sell crypto at a loss and immediately repurchase to realize the loss while maintaining your position. This offsets gains and reduces federal tax liability.

Long-Term Holding

Holding crypto for more than one year qualifies gains for preferential federal rates of 0%, 15%, or 20% versus ordinary income rates up to 37%. With no state tax, Florida residents keep 100% of the federal savings.

Charitable Donations

Donating appreciated cryptocurrency held over one year to qualified charities allows you to:

Deduct the full fair market value
Avoid recognizing capital gains on the donated crypto
Support causes you care about while optimizing taxes

Estimated Tax Payments

With no state tax, Florida residents only make federal estimated payments if expecting to owe $1,000 or more. Quarterly deadlines are April 15, June 15, September 15, and January 15.

Services for Florida Crypto Investors

For Current Florida Residents

Federal Tax Return Preparation: Complete Form 1040 with Form 8949 and Schedule D
Transaction Reconciliation: Rev. Proc. 2024-28 compliant wallet-by-wallet tracking
Form 1099-DA Matching: Reconciling exchange-reported data to prevent IRS notices
Tax-Loss Harvesting: Strategic loss realization without wash sale restrictions
Mining/Staking Income: Proper reporting of crypto income activities
Estimated Tax Planning: Quarterly federal projections to avoid underpayment penalties
IRS Audit Defense: Representation before the IRS

For Investors Relocating to Florida

Residency Establishment Documentation: Building the paper trail that proves your Florida domicile
Former State Audit Defense: Representation if your old state challenges your departure
Part-Year Return Preparation: Handling both states' returns for the year of your move
Sale Timing Strategy: Planning when to realize gains relative to your residency change

Areas We Serve in Florida

We serve Florida crypto investors throughout the state via our remote service model:

South Florida: Miami, Fort Lauderdale, West Palm Beach, Boca Raton
Central Florida: Orlando, Tampa, St. Petersburg
North Florida: Jacksonville, Gainesville, Tallahassee
Southwest Florida: Naples, Fort Myers, Sarasota

All services delivered via secure portal and video consultation—no office visit required.

Frequently Asked Questions

I just moved to Florida from New York. Can I sell my crypto now and avoid NY tax?

If you've properly established Florida domicile before selling, yes—gains realized as a Florida resident aren't taxable by New York. However, New York will scrutinize your departure. Make sure you've completed all steps to establish Florida residency, and be prepared to document where you spent each day. Consult us before executing major sales.

Do I need to spend a certain number of days in Florida?

There's no single magic number, but spending the majority of your time in Florida supports your residency claim. More importantly, you need to not spend too many days in your former state. New York's statutory residency rule triggers if you spend 184+ days in NY while maintaining a permanent place of abode there.

My spouse still works in New York but I moved to Florida. How are my crypto gains taxed?

This is complicated. If you file jointly, your combined income may still be subject to New York tax to the extent allocated to the spouse who's a NY resident. For spouses in different states, filing separately may be beneficial. This requires careful analysis of your specific situation.

I'm a Florida resident but trade on international exchanges. Any special considerations?

Same as any U.S. resident: you must report worldwide income on your federal return. If you hold crypto on foreign exchanges and the value exceeds certain thresholds, you may have FBAR (FinCEN Form 114) filing requirements. Florida has no additional state requirements.

Is Florida's no-income-tax status at risk of changing?

Florida's constitution currently prohibits a state personal income tax. Changing this would require a constitutional amendment approved by 60% of voters. While nothing is impossible, a Florida income tax is unlikely in the foreseeable future.

Enjoy the Sunshine—And the Tax Savings

Whether you're a Florida native or newly arrived from a high-tax state, let's make sure your crypto taxes are handled correctly. Federal compliance still matters, and proper documentation of your residency protects you from former-state claims.

Schedule a Consultation

Phone: (862) 320-9554
Email: Greg@MonacoCPA.CPA