Bitcoin in Connecticut: what to know
Connecticut limits crypto ATM (kiosk) purchases: $2,000/day new customers; $5,000/day existing. Crypto gains are taxed as ordinary income. 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 Connecticut is state law and tax, explained below.
Crypto ATMs in Connecticut
Conn. Gen. Stat. 36a-613 (from P.A. 23-82, amended in 2024 and by P.A. 25-66 effective October 1, 2025) requires a licensed operator and caps kiosk fees at 15%. New customers can request a full refund for fraud in the first 72 hours after registration if they also report it to a government or law-enforcement agency. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Connecticut
Virtual currency transmission requires a Connecticut money transmitter license from the Department of Banking. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Connecticut
Crypto gains are taxed as ordinary income. 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.
State bitcoin reserve
Connecticut went the other way in 2025: P.A. 25-66 (HB 7082, signed June 30, 2025) bars the state from investing in or holding virtual currency, including through a reserve.
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.