Bitcoin in Colorado: what to know
Colorado limits crypto ATM (kiosk) purchases: $2,000/day new customers (first 7 days); $10,500/day existing. Crypto gains are taxed under Colorado's flat income tax. Since September 2022, Colorado has accepted crypto for state tax payments through PayPal's crypto hub.
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 Colorado is state law and tax, explained below.
Crypto ATMs in Colorado
The Colorado Vending of Digital Assets Act (SB25-079) took effect January 1, 2026. It requires disclosures and electronic receipts. A customer's first transaction sent to a foreign wallet or exchange must be fully refunded if fraud is reported to the operator and to police or a government agency within 60 days, with proof. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Colorado
Exchanges and other crypto businesses serving Colorado residents generally need a state money-transmitter license. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Colorado
Crypto gains are taxed under Colorado's flat income tax. Since September 2022, Colorado has accepted crypto for state tax payments through PayPal's crypto hub. 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.