Bitcoin in Washington: what to know
Washington has no statewide crypto ATM limits; operators set their own. Washington has no general income tax, but its capital gains excise tax applies to crypto (which counts as intangible property) held more than a year by residents. The rate is 7% on gains above the annual deduction, plus 2.9% on gains above $1 million since 2025. A separate 9.9% tax on income over $1 million (SB 6346) is set to start January 1, 2028 and faces legal challenge.
Bitcoin has one price in US dollars across the country: the price on this page is the same as on the bitcoin price in the United States page, where federal tax rules are covered in full. What differs in Washington is state law and tax, explained below.
Crypto ATMs in Washington
Washington has no statewide kiosk law: SB 5280, with a $2,000/day cap, died in the House in 2026. Spokane (2025) and, in 2026, Spokane Valley, Kennewick, Anacortes and La Conner have banned kiosks locally. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Washington
Virtual currency transmission requires a money transmitter license from the Department of Financial Institutions under the Uniform Money Services Act. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Washington
Washington has no general income tax, but its capital gains excise tax applies to crypto (which counts as intangible property) held more than a year by residents. The rate is 7% on gains above the annual deduction, plus 2.9% on gains above $1 million since 2025. A separate 9.9% tax on income over $1 million (SB 6346) is set to start January 1, 2028 and faces legal challenge. Federally, the IRS treats bitcoin as property: selling, trading or spending it is a taxable event, with short-term gains (held a year or less) taxed as ordinary income and long-term gains at 0%, 15% or 20%; bitcoin received as pay or from mining is income. Exchanges and other custodial brokers report sales on Form 1099-DA: gross proceeds for sales from 1 January 2025, and cost basis for many sales from 1 January 2026. Every Form 1040 asks whether you received or disposed of a digital asset.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.