Bitcoin in Hawaii: what to know
Hawaii bans crypto ATMs (kiosks) that take cash from Oct 1, 2026. Crypto gains are taxed as income, with capital gains taxed at no more than 7.25%. 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 Hawaii is state law and tax, explained below.
Crypto ATMs in Hawaii
HB 1642 (signed July 2026) bars, from October 1, 2026, the ownership or operation of digital-asset kiosks that accept US cash for crypto. Hawaii News Now reports that existing account holders can still cash out. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Hawaii
Since the state's Digital Currency Innovation Lab ended on July 1, 2024, crypto firms no longer need a Hawaii money transmitter license. That change reopened the state to exchanges that had stayed out. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Hawaii
Crypto gains are taxed as income, with capital gains taxed at no more than 7.25%. 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.
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.