Advertisement
taxes

Bitcoin Tax Payments Allowed in Ohio

Businesses can use bitcoin to pay 23 separate taxes in the state.

The Buckeye State just became the first state in the nation to accept bitcoin for tax payments.

Right now, only businesses can use the cryptocurrency for Ohio tax payments. But look for the state to expand the program to personal tax payments in the future. Cryptocurrencies other than bitcoin could be added to the payment program as well.

Businesses can use bitcoin to pay 23 separate Ohio taxes, including sales tax, the Commercial Activity Tax, withholding taxes and tobacco taxes. They don’t need to be headquartered in the state to use the blockchain technology, but they must operate in Ohio and have a tax profile on file with the state treasurer’s office.

Advertisement - Article continues below

Payments must be made through a special payment portal at OhioCrypto.com. The state itself does not hold cryptocurrency. Instead, payments go through a third-party processor (BitPay) that converts the bitcoin payment to U.S. dollars and deposits it into a state account. BitPay sets the exchange rate for each transaction. It also assumes the risk of any market fluctuations while the transaction is being processed.

Fees apply to each transaction. A processing fee is based on a percentage of the total transaction amount. A network fee is also charged to cover the costs of validating the transaction on the blockchain network. A “miner fee” may also apply.

Advertisement
Advertisement

Most Popular

18 Things You Can't Return to Amazon
Smart Buying

18 Things You Can't Return to Amazon

Before tossing these items into your virtual shopping cart, be sure to read Amazon's return policy first.
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
7 Foreign Countries Luring Americans to Work Abroad During the Pandemic
careers

7 Foreign Countries Luring Americans to Work Abroad During the Pandemic

Work remotely – really remotely – in these appealing destinations offering special visas for American workers.
September 18, 2020

Recommended

The Annuity With a Tax-Planning Twist
Financial Planning

The Annuity With a Tax-Planning Twist

A qualified life annuity contract helps retirees with guaranteed payments to last their entire lives.
September 21, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Most-Overlooked Tax Breaks for the Newly Divorced
tax deductions

Most-Overlooked Tax Breaks for the Newly Divorced

Filing taxes after a divorce can add yet another problem to an already long list of challenges. But here are some tips to make your return to single l…
September 18, 2020
What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
September 17, 2020