Bitcoin in California: what to know
California limits crypto ATM (kiosk) purchases: $1,000/day per customer. Crypto gains are taxed as ordinary income, at rates up to 13.3%. There is no special crypto exemption, and the state does not accept crypto for tax payments.
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 California is state law and tax, explained below.
Crypto ATMs in California
Under the Digital Financial Assets Law (DFAL), kiosks have been limited to $1,000 per customer per day since January 1, 2024. Since January 1, 2025, fees are capped at the greater of $5 or 15%, and pre-transaction disclosures are required. Kiosk operators also fall under DFAL licensing from July 1, 2026. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in California
Since July 1, 2026, crypto exchanges, custodians and kiosk operators serving California residents must hold a DFPI license under DFAL, have filed a complete application, or qualify for an exemption. DFPI has taken applications through NMLS since March 9, 2026. Firms without one must stop serving Californians. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in California
Crypto gains are taxed as ordinary income, at rates up to 13.3%. There is no special crypto exemption, and the state does not accept crypto for tax payments. 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.
Other crypto laws in California
SB 822 (signed October 2025) lets unclaimed crypto be transferred to the state in kind instead of being forcibly sold.
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.