Detroit to Accept Cryptocurrency Payments for Taxes in 2025

Although Ohio announced in 2018 that it would accept cryptocurrency tax payments, Colorado became the first US state to allow its residents to pay state taxes using crypto in September 2022. However, the first cities to accept cryptocurrency-based payments are Williston in North Dakota and Miami Lakes in Florida.

Now, the City of Detroit, Michigan State, has announced that it will accept cryptocurrency payment for taxes and other fees, thus becoming the largest US city to make such a decision.

Impact on Taxable Persons

November 7, 2024, could become the next big date for cryptocurrency enthusiasts. On that date, the City of Detroit announced that it would implement rules and regulations to allow residents to pay taxes, including sales and use tax, with cryptocurrencies. Payments will be made through a secure platform managed by PayPal. 

The decision to implement this measure is part of the city's strategy to use innovative technologies to enhance public services and generate more revenue for the city budget.

The possibility of using cryptocurrency as a payment method should become available in mid-2025. The City of Detroit is changing and updating the existing payment platform. Once completed, residents will have the option to pay sales and use taxes using cryptocurrency.

Apart from introducing cryptocurrencies as legal payment tender, the City of Detroit also wants to attract blockchain entrepreneurs and innovators to present their ideas on how to use blockchain to improve the level of services that this city provides to its residents. The city wants to enhance transparency, data security, and civil engagement.

Conclusion

The decision to allow cryptocurrencies to pay sales and use tax, among other taxes and fees, marks a pivotal moment for the City of Detroit, its residents, and crypto enthusiasts. Currently, only residents can use cryptocurrencies to settle their tax obligations. 

With this decision, the City of Detroit joins only a handful of US cities and states that officially accept cryptocurrency as payment method.

Source: City of Detroit