Almost Nobody in Colorado Is Paying Taxes With Crypto
Only 0.0005% of the $11 billion in income tax collected in Colorado since 2022 has been paid using cryptocurrency, totaling just over $57,000. Colorado began accepting crypto tax payments in September 2022, with only eight payments totaling $16,426 made in 2022. This increased to 22 payments and $23,241 in 2023 but fell to $17,544 across 48 payments in 2024. Payments are processed through PayPal's Cryptocurrencies Hub, converting digital assets into U.S. dollars. Bitcoin is primarily viewed as a store of value rather than a medium of exchange, contributing to low usage for tax payments. Utah is the only other state accepting crypto for taxes, while Detroit plans to start accepting digital asset payments. Skepticism exists regarding the future of crypto-based tax payments, with expectations that stablecoins may become the preferred transaction method.
