Key Facts About Crypto Tax in Austin
Texas takes nothing off a crypto gain, and Austin has become the destination for equity-heavy Californians who want to keep it that way. The FTB audits exactly those moves. Establishing Texas residency before disposing of appreciated lots, and proving it per lot, is the highest-leverage tax decision an Austin transplant makes.
- Texas has no state income tax, so Austin crypto investors pay only federal tax on gains: up to 23.8% long-term including NIIT.
- A California investor who establishes Texas residency before selling appreciated crypto can save up to 13.3% of the gain, $66,500 on a $500,000 sale.
- Tesla moved its headquarters to Austin in 2021, part of a migration that brought thousands of equity-heavy households from California to Central Texas.
- Riot Platforms operates one of North America's largest bitcoin mining facilities in Rockdale, about an hour northeast of Austin.
- The Franchise Tax Board audits move-year returns, so disposal dates versus the residency date must be provable at the lot level.
- Count On Sheep delivers CPA-ready 8949, Schedule D, and Schedule 1 inputs for Austin investors. Your CPA files, or you file with TurboTax.
Austin crypto investors pay zero state income tax, and a California transplant who establishes Texas residency before disposing of appreciated lots keeps up to 13.3% more of every gain, $66,500 on a $500,000 sale. The Franchise Tax Board audits exactly that timeline. Count On Sheep, a USA-based team with former Big 4 leadership, rebuilds wallet, exchange, mining, and DeFi history into CPA-ready Form 8949, Schedule D, and Schedule 1 inputs for Austin investors, with the per-lot dates that make a Texas move defensible. We do not file. Your CPA files, or you file with TurboTax.
Phone: (858) 434-7547
Why Austin crypto investors need a specialist
Austin sits at the intersection of three crypto profiles: California transplants with appreciated portfolios, tech workers holding equity plus crypto, and one of the largest bitcoin mining corridors in North America an hour up the road.
The migration is the headline. Tesla moved its headquarters to Austin in 2021, and the broader tech relocation brought thousands of households from California carrying RSUs, startup equity, and appreciated crypto lots. For them, the Texas math only pays off if the ledger proves the timeline: what was sold as a Californian stays California taxable, and the FTB checks.
Bitcoin-native business is the second profile. Riot Platforms runs one of the continent's largest mining facilities in Rockdale, Core Scientific is headquartered in Austin, and Unchained built its bitcoin financial services business here. Mining operations need daily reward streams reconstructed at fair market value, with clean data feeding Schedule C, depreciation, and power cost decisions made by the CPA.
The founder scene rounds it out. CoinDesk's Consensus conference ran in Austin from 2022 through 2024, and the city's startups pay contributors in tokens with vesting schedules and lockups. Add the multi-year backlogs most transplants carry from their California years, and Austin generates some of the most varied crypto tax work we see anywhere.
Whatever the profile, the deliverable is identical: per-lot Form 8949 detail, Schedule D totals, Schedule 1 or Schedule C inputs for mining and staking, and workpapers behind every number. An Austin CPA files from it directly, or you drop the totals into TurboTax. For transplants, the package includes the disposal timeline against the move date, which is the document the FTB conversation eventually comes down to.
What crypto gains actually cost in Austin
Austin residents pay no state or city income tax on crypto. The Texas constitution bans a personal income tax, so the only layer is federal: up to 20% long-term plus the 3.8% net investment income tax, or ordinary rates up to 37% plus NIIT for short-term gains, staking, and mining.
What moving to Austin changes on a $500,000 long-term crypto gain
| City | State + local tax | Federal (LTCG + NIIT) | Total tax | Extra cost vs Austin |
|---|---|---|---|---|
| Austin | $0 | $119,000 (23.8%) | $119,000 | Baseline |
| San Francisco | $66,500 (13.3%) | $119,000 (23.8%) | $185,500 | +$66,500 |
| New York City | $73,880 (14.776%) | $119,000 (23.8%) | $192,880 | +$73,880 |
Illustrative math at top marginal rates. Federal assumes the 20% long-term rate plus 3.8% net investment income tax. A California resident who sells before establishing Texas residency still owes California tax on the gain. The savings apply to disposals after the move, and the FTB audits the timeline.
Federal conformity in Texas
No state income tax means no conformity question. Federal property treatment applies in full: per-lot basis, the digital asset question on Form 1040, and 1099-DA broker reporting from the 2025 tax year.
What this means in practice: the entire tax outcome for an Austin investor rides on the federal layer and, for transplants, on the move timeline. Long-term versus short-term treatment is worth up to 17 percentage points federally, and selling on the right side of a Texas move is worth up to 13.3% more. Both are questions of documentation, not argument, and both are answered by the same per-lot ledger we deliver.
What we untangle for Austin crypto investors
Four steps, start to finish
From anywhere in Texas.
Connect
You connect read-only access to your exchanges and share wallet addresses. CSV exports work too.
Reconcile
We pull and reconcile every wallet, exchange, and DeFi interaction into one ledger with cost basis, holding period, and proceeds per lot.
Specialist Review
A senior crypto tax professional reviews edge cases. Manual basis splits, DeFi classifications, bridge events, restaking, NFTs.
CPA-Ready Reports
You get CPA-ready Form 8949, Schedule D, Schedule 1 inputs (and Schedule C for mining), plus full workpapers. Hand to your CPA, or load into TurboTax.
Clean files, ready for your CPA
When the crypto tax work is done, you receive a tidy package: Form 8949 detail, Schedule D totals, Schedule 1 inputs for staking and airdrops, and the workpapers behind every number. That goes straight to your CPA, or into TurboTax.
Talk through your crypto tax situation first.
Every wallet, exchange, and DeFi history is different. Start with a consultation so we can understand the work, confirm what your CPA needs, and outline the cleanest path forward for your Texas return.
Common questions, Austin edition
Do you have an office in Austin?
No. Count On Sheep is headquartered in San Diego and serves Austin clients remotely through a secure portal, video calls, and read-only exchange access. The output is the same CPA-ready package regardless of geography.
Do I owe Texas tax on my crypto?
No. Texas has no personal income tax, so crypto gains are taxed only federally. Form 8949, Schedule D, and the digital asset question on Form 1040 still apply, and mining or staking income still lands on Schedule 1 or Schedule C.
I am moving from California to Austin. When should I sell my crypto?
Selling after Texas residency is established can save up to 13.3% of the gain, but California audits that exact sequence. Your CPA advises on the timing for your facts. We produce the per-lot record that proves which sales happened on which side of the move.
How does the FTB decide I am really a Texan now?
Domicile facts: where your home, family, vehicles, licenses, and business ties sit, plus day counts in each state. Our contribution is the crypto ledger with exact disposal dates, which is the piece software and memory both get wrong.
How is bitcoin mining taxed in Austin?
Rewards are ordinary income at fair market value when received, and operations run as a business report on Schedule C with equipment depreciation and power costs. We reconstruct the reward stream and hand your CPA the income figure and the supporting detail.
Is borrowing against my bitcoin taxable?
No, loan proceeds are not income. But a collateral liquidation is a disposal of your BTC at that moment's price, and collateral movements into multisig custody must be documented as transfers. We track all three so nothing gets misreported.
Are wallet-to-wallet transfers taxable?
No, moving your own coins is not a disposal. But every transfer breaks naive software basis tracking, which is how phantom gains appear. We reconcile transfers so each lot keeps its original basis and acquisition date.
Do I need to make estimated tax payments on crypto gains in Texas?
Federally, often yes. With no employer withholding on crypto gains, a large disposal can trigger quarterly estimated payment obligations and underpayment penalties if ignored. Your CPA sets the payment schedule. Our contribution is the realized gain number, delivered accurately and early enough to actually plan with.
Can my Austin CPA use your reports?
Yes. That is the design: 8949 detail, Schedule D totals, Schedule 1 or Schedule C inputs for mining and staking, and workpapers behind every number. Your CPA files from it directly.
What do I need to get started?
Exchange access or CSVs, wallet addresses, mining pool statements if you mine, prior returns that touched crypto, and your move date if you relocated from another state. We scope it on a free consultation call.
About the Count On Sheep team
Count On Sheep is a USA-based team of crypto tax professionals. Former Big 4 accountants and CPA leadership, now crypto-native blockchain tax experts. We do hands-on crypto tax work for high-volume investors, funds, founders, and active traders, including Texas residents from Austin, Houston, Dallas and beyond.
We don't file taxes. We don't replace your CPA. Most CPAs don't do crypto, that's the gap we fill. We bridge DeFi and TradFi to produce the 8949, Schedule D, and Schedule 1 inputs your CPA can drop into your return.
Ready to get your crypto tax handled and CPA-ready?
Book a free scoping call or call us directly. We serve Austin investors remotely, wherever your wallets live.