Bitcoin in Vermont: what to know
Vermont bans crypto ATMs (kiosks) from Jul 1, 2026. Crypto gains are taxed as income. Vermont partly excludes gains on assets held more than 3 years, up to a cap. 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 Vermont is state law and tax, explained below.
Crypto ATMs in Vermont
Act 142 (signed June 16, 2026) bans crypto kiosks from July 1, 2026, and all kiosk registrations ended that day. Operators must fully refund any transaction made in violation of the ban. Before the ban, Vermont capped kiosks at $1,000/day with a 3% fee cap and a moratorium on new machines. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Vermont
Act 142 also widened the definition of money transmission to include virtual-currency activity, so those businesses need a Vermont money transmitter license. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Vermont
Crypto gains are taxed as income. Vermont partly excludes gains on assets held more than 3 years, up to a cap. 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.