Colorado Residents Can Now Use Crypto to Pay Taxes

The state's taxpayers can do so through PayPal for an additional fee.

AccessTimeIconSep 20, 2022 at 11:58 a.m. UTC
Updated May 11, 2023 at 6:13 p.m. UTC

Colorado residents can now pay state taxes with cryptocurrencies using PayPal, according to the state's payment portal. Payment takes place through PayPal's cryptocurrencies hub for an additional fee.

In February, Gov. Jared Polis outlined plans to accept crypto for tax payments by the end of summer during an appearance on CoinDesk TV.

The option allows residents to use crypto to pay for personal income tax, business income tax, severance tax and withholding tax, according to an Axios report that cites a speech Polis gave in Denver on Monday.

While PayPal lets users deposit, withdraw and hold a variety of cryptocurrencies, the settlement of its crypto checkout service is in U.S. dollars. There's also a service fee of $1 plus 1.83% of the payment amount.

Several other U.S. states, including Florida and Ohio, have tested accepting crypto for tax payments, and in South America, the inflation-hit capital of Argentina, Buenos Aires, said in April it will allow crypto payment for taxes.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.