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Colorado Allows Tax Payments with Crypto

Colorado becomes the first U.S. state to accept crypto payments for taxes.

By Luc Vesters
• 1 min read
Colorado Allows Tax Payments with Crypto

Colorado becomes the first U.S. state to accept crypto payments for taxes. Governor Jared Polis announced the new integration of Bitcoin and other cryptos during Denver Startup Week. In addition to debit and credit cards, direct bank transfers, or e-checks, citizens can now also use cryptocurrencies to pay taxes to the tax office, as noted on their website.

The catch: Users can only make crypto payments through their PayPal accounts. PayPal rolled out crypto integration in the US in October 2020. According to the tax office, anyone using this payment method must pay a service fee of one U.S. dollar plus 1.83% of the total amount. Also, the entire transfer amount must be paid in a cryptocurrency. Partial payments using multiple coins or tokens are not possible.

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